How is FD interest calculated?

FD interest is calculated using compound interest formula: A = P(1 + r/n)^(n*t), where P is principal, r is annual rate, n is compounding frequency (usually quarterly), and t is tenure in years.

What are the current FD rates in India?

Major bank FD rates in 2026 range from 6.5% to 8.25% for regular citizens. Senior citizens get an additional 0.25-0.50% premium. Small finance banks may offer up to 9%.

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FD Calculator

Calculate your Fixed Deposit maturity amount, interest earned, and compare returns across different tenures and rates.

Deposit Amount (₹)

₹10K₹5,00,000₹1Cr

Interest Rate (% p.a.)

3%7%12%

Tenure (Years)

15 Years10

Compounding

Maturity Amount

₹7,12,986

Interest Earned

₹2,12,986

Effective Yield

7.19%

📊 Investment Breakdown

📈 FD Interest Rates — Major Banks (2026)

Fixed Deposit interest is calculated using compound interest. Most banks compound quarterly:

Maturity = P × (1 + r/n)^n×t

Bank	1 Year	3 Years	5 Years	Senior Citizen Bonus
SBI	6.80%	7.00%	6.50%	+0.50%
HDFC Bank	6.60%	7.10%	7.00%	+0.50%
ICICI Bank	6.70%	7.10%	7.00%	+0.50%
Axis Bank	6.70%	7.10%	7.00%	+0.50%
Post Office	6.90%	7.10%	7.50%	N/A

* Rates are indicative and subject to change. Check bank websites for latest rates.

⚖ FD vs Other Investment Options

Factor	FD	SIP (Equity)	PPF	RD
Returns	6.5-8%	12-15%	7.1%	6.5-7%
Risk	Very Low	Medium-High	Zero (Govt)	Very Low
Liquidity	Moderate (penalty)	High	Low (15yr lock)	Low
Tax on returns	Slab rate	12.5% LTCG	Tax-free	Slab rate
Min investment	₹1,000	₹500/mo	₹500/yr	₹100/mo

❓ Frequently Asked Questions

Is FD interest taxable?

Yes. FD interest is added to your income and taxed at your slab rate. TDS of 10% is deducted if interest exceeds ₹40,000/year (₹50,000 for senior citizens). Submit Form 15G/15H to avoid TDS if income is below taxable limit.

What is the penalty for breaking an FD early?

Most banks charge a 0.5-1% penalty on premature withdrawal. The interest rate applied will be the rate for the actual period the FD was held, minus the penalty percentage.

What is a Tax-Saving FD?

A Tax-Saving FD has a 5-year lock-in period and qualifies for deduction under Section 80C (up to ₹1.5L). However, the interest earned is still taxable.

Should I choose cumulative or non-cumulative FD?

Cumulative FD reinvests interest, giving higher returns at maturity — ideal for wealth building. Non-cumulative FD pays interest monthly/quarterly — ideal for retirees needing regular income.

💡 About fd calculator

Professional-grade fd calculator tool designed for accuracy and privacy. Calcora provides expert-built utilities entirely free of charge with zero data collection.

All calculations happen instantly and locally within your browser, ensuring your data remains absolutely private.

❓ Frequently Asked Questions

Is my data stored on your servers?

No. Calcora tools run 100% client-side. No data is uploaded or stored on any external server.

Is this service free?

Yes, all tools on Calcora are completely free to use without any account or subscription.