Fixed Deposit (FD) Calculator
Compute FD maturity, total interest, senior citizen premium, and the real post-tax return — instantly.
Deposit Details
Compounding & Adjustments
Maturity Value
$141,478
Total Interest
$41,478
Tax on Interest
$8,296
Post-Tax Maturity
$133,182
Principal vs Interest
About this tool
A Fixed Deposit calculator built for the way Indian banks actually run FDs — quarterly compounding by default, a built-in senior citizen premium toggle, and full post-tax modeling including TDS thresholds. Get maturity value, total interest, and what you actually take home after tax, in seconds.
How to use it
Quick steps to get the most out of this utility.
- 1
Enter principal
The lumpsum amount you plan to deposit.
- 2
Set interest rate
Current FD rates in India range 5.5–7.5% for 1–5 year tenures.
- 3
Pick tenure
Years and months — Indian banks support FDs from 7 days to 10 years.
- 4
Choose compounding
Most banks compound quarterly; some senior schemes compound monthly.
- 5
Add tax slab
Your income tax slab determines how much of the interest you keep after tax.
How FD compounding actually works
When a bank advertises "7% FD," they mean 7% per annum compounded quarterly — not simple interest. Each quarter, the interest earned is added to your principal, and the next quarter's interest is calculated on the new, larger balance. Over a 5-year FD at 7%, this quarterly compounding turns ₹1 lakh into about ₹1.41 lakh instead of the ₹1.35 lakh that simple interest would yield — roughly ₹6,000 of extra interest from the compounding mechanic alone.
FD rates by tenure (typical 2026)
- 7–14 days: 3.5–4% — generally a parking option, not an investment
- 1–2 years: 6.5–7.25% — most popular tenure for short-term goals
- 3–5 years: 6.75–7.5% — best balance of rate and liquidity
- 5 years (tax-saving FD): 6.5–7% with 80C deduction up to ₹1.5L
- 5–10 years: 6.5–7% — locks rate but reinvestment risk if rates fall
When an FD makes sense (and when it does not)
FDs make sense for the part of your portfolio that absolutely cannot lose nominal value — emergency funds, money you need within 2–3 years, and the "fixed income" allocation that balances your equity. FDs do not make sense as the only investment vehicle for long-term goals (10+ years), where equity mutual funds historically beat FDs by 4–6 percentage points annually after tax and inflation.
FD vs other options at a glance
- FD vs RD: FD for a lumpsum; RD for monthly savings discipline
- FD vs PPF: PPF has higher post-tax return and 80C benefit but 15-year lock-in
- FD vs Debt mutual fund: Debt funds are more tax-efficient for 3+ year horizons; FDs win on simplicity and predictability
- FD vs Liquid fund: Liquid funds for sub-6-month money (higher post-tax return, instant redemption)
Frequently asked questions
How is FD interest calculated?+
Indian banks use compound interest, typically compounded quarterly. The formula is A = P × (1 + r/n)^(n×t), where P is principal, r is the annual rate, n is compounding periods per year (4 for quarterly), and t is years. Most bank FDs compound quarterly; some senior-citizen schemes and small finance banks compound monthly.
What is the difference between monthly and quarterly compounding?+
Monthly compounding earns slightly more — about 0.1–0.2% extra effective yield over a 5-year FD at 7%. On a ₹1 lakh, 5-year FD, the difference is roughly ₹700–1,200. Quarterly compounding is the Indian banking standard; monthly is available at select banks and small finance banks but rarely worth switching for unless the rate is already competitive.
Do senior citizens really get 0.5% more interest?+
Yes — almost every Indian bank offers an additional 0.25–0.75% (commonly 0.5%) on FDs for citizens above 60. Some small finance banks offer even higher senior premiums. The TDS exemption is also higher (₹50,000 of interest vs ₹40,000 for regular customers). Combined, senior FDs are one of the best risk-free yields available in India.
When is TDS deducted on FD interest?+
TDS at 10% applies if your total FD interest from a single bank exceeds ₹40,000 in a financial year (₹50,000 for senior citizens). If your total income is below the taxable threshold, submit Form 15G (or 15H for seniors) to your bank to avoid TDS. Note: TDS is deducted at 20% if you have not submitted your PAN to the bank.
Should I prefer cumulative or non-cumulative FDs?+
Cumulative FDs reinvest the interest, so it compounds — best for wealth growth. Non-cumulative FDs pay interest monthly, quarterly, or annually to your bank account — useful if you need regular income (retirees, expense planning). Both earn similar gross interest; the difference is whether the interest compounds inside the FD or sits in your savings account at lower rates.
How is FD interest taxed?+
FD interest is fully taxable at your slab rate — added to your total income under "Income from Other Sources". TDS is withheld at 10% (or 20% without PAN), but you still owe the difference if your slab is higher. A 30%-slab earner with ₹50,000 of FD interest owes ₹15,000 tax, of which ₹5,000 is already withheld as TDS — the remaining ₹10,000 is paid via your ITR.
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