Fixed deposits are India's most popular savings instrument. These scenarios show you exactly how much different FD amounts grow at current bank rates, with breakdowns across compounding frequencies and tax implications.

The maths is the standard compound-interest formula: M = P × (1 + r/n)n×t, where P is the principal, r the annual rate, n the compounding frequency (4 for quarterly, the default in Indian banks), and t the tenure in years. Doubling the tenure roughly doubles the interest earned, but doubling the rate more than doubles it because of compounding.

How to use these scenarios: find the deposit size closest to yours, then compare 1-, 3-, 5-, and 10-year tenures to see how much extra you earn by locking in longer. Remember the maturity values are pre-tax - see the FAQ for how TDS and slab rates affect the take-home figure.

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Frequently Asked Questions

What FD interest rate do these scenarios use?

Most scenarios use 7.0% to 7.25% per annum, the typical range offered by major Indian banks (SBI, HDFC, ICICI, Axis) for retail FDs of 1–10 years in early 2026. Small finance banks and corporate FDs may offer 0.5–1.5% higher, but carry slightly higher risk. Senior citizens generally receive an extra 0.25–0.50% bonus rate not reflected here.

Are FD returns taxable?

Yes - FD interest is fully taxable as "Income from Other Sources" at your slab rate. Banks deduct 10% TDS once annual interest crosses ₹40,000 (₹50,000 for senior citizens). Submit Form 15G/15H if your total income is below the taxable limit. The maturity figures shown here are pre-tax - net post-tax returns are roughly 4.5–5% for someone in the 30% slab.

Should I pick monthly or quarterly compounding?

Most banks compound FD interest quarterly by default, which is what these scenarios assume. Monthly compounding adds about 0.05–0.10% to the effective yield over 5 years - meaningful only on large deposits. For small FDs, the choice matters less than the headline rate; for ₹10 lakh+ deposits, ask the bank explicitly.

Is breaking an FD early worth it?

Premature withdrawal usually triggers a 0.5–1.0% penalty on the applicable rate (the rate the bank would have paid for the actual holding period). On a 5-year FD broken at year 3, you might earn 6.5% effective instead of the booked 7.25%. If you need liquidity, an FD ladder or sweep-in account is more efficient than locking everything into one long-tenor FD.

Want to Calculate with Your Own Numbers?

Every scenario uses standard assumptions. Use the calculator to input your exact figures.

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