Are FD returns taxable?

Yes. Interest earned on FDs is fully taxable as 'income from other sources' at your income tax slab rate. Banks deduct TDS at 10% if interest exceeds ₹40,000 per year (₹50,000 for senior citizens). If your total income is below the taxable limit, you can submit Form 15G or 15H to prevent TDS.

Can I break an FD early?

Yes, but most banks levy a 0.5%–1% penalty on the applicable interest rate. You receive the lower of the contracted rate (minus penalty) or the rate that applied for the actual tenure.

Senior citizen rates — what's the difference?

Senior citizens (60+) typically get 0.25%–0.75% higher interest than the regular rate at the same bank for the same tenure, making it an excellent post-retirement cash flow option.

Is an FD safer than a debt mutual fund?

FDs offer fixed returns and DICGC insurance up to ₹5 lakh per bank, so they're highly predictable. Debt funds can offer better post-tax returns over longer horizons but carry small interest-rate and credit risk.

Are FD returns taxable?

Yes. Interest earned on FDs is fully taxable as 'income from other sources' at your income tax slab rate. Banks deduct TDS at 10% if interest exceeds ₹40,000 per year (₹50,000 for senior citizens). If your total income is below the taxable limit, you can submit Form 15G or 15H to prevent TDS.

Can I break an FD early?

Yes, but most banks levy a 0.5%–1% penalty on the applicable interest rate. You receive the lower of the contracted rate (minus penalty) or the rate that applied for the actual tenure.

Senior citizen rates — what's the difference?

Senior citizens (60+) typically get 0.25%–0.75% higher interest than the regular rate at the same bank for the same tenure, making it an excellent post-retirement cash flow option.

Is an FD safer than a debt mutual fund?

FDs offer fixed returns and DICGC insurance up to ₹5 lakh per bank, so they're highly predictable. Debt funds can offer better post-tax returns over longer horizons but carry small interest-rate and credit risk.

Finance

FD Calculator

Name: FD Calculator
Availability: InStock
Author: CalculatorDesk

Calculate interest and maturity amount for Fixed Deposits (FD) online. Compounding options (monthly, quarterly, yearly). Fast, accurate bank FD calculator.

By CalculatorDeskUpdated 2 Jul 2026

Deposit amount

₹

₹ 1,000₹ 1,00,00,000

Interest rate

1%12%

Tenure

yrs

1 yrs20 yrs

Compounding frequency

Maturity amount

₹1,41,478

Principal: ₹1,00,000
Interest earned: ₹41,478

What is FD?

A Fixed Deposit (FD) is a secure financial instrument offered by banks and NBFCs, guaranteeing a fixed rate of interest until maturity. In India, bank deposits are compounding quarterly by default. DICGC insures deposits up to ₹5 lakh per bank per depositor.

Fixed Deposit (FD) allows you to park a lump sum of money for a fixed tenure at a predetermined rate of interest. FDs are highly popular in India due to their low risk and guaranteed returns, with senior citizens typically receiving a premium of 0.25% to 0.75% over normal rates. Interest payouts can be cumulative (reinvested and paid at maturity) or non-cumulative (payouts sent monthly or quarterly to yield regular income).

Formula

FD maturity amounts are calculated using the compound interest formula. For standard Indian bank FDs, compounding occurs 4 times a year (quarterly).

Standard compound interest formula:

A = P × (1 + r/n)^(n × t)

A = maturity amount
P = principal
r = annual interest rate (decimal)
n = compounds per year (4 for quarterly)
t = years

Worked Example

Worked Example Model:

Deposit Amount (P): ₹1,00,000
Interest Rate (R): 7.5% p.a.
Tenure (t): 5 Years
Compounding Frequency (n): Quarterly (4 times/year)

Steps:

Convert annual rate to decimal: r = 7.5 / 100 = 0.075.
Determine compounding periods per year: n = 4.
Calculate total compounding cycles: n * t = 4 * 5 = 20 cycles.
Apply compound interest formula: A = P * (1 + r/n)^(n * t).
Compute: (1 + 0.075 / 4)^20 = (1.01875)^20 = 1.449948.
Determine maturity amount: A = ₹1,00,000 * 1.449948 = ₹1,44,995.

Principal Invested: ₹1,00,000. Interest Earned: ₹44,995. Maturity Value: ₹1,44,995.

How to use this calculator

Enter your initial deposit amount, the interest rate offered by the bank, and the tenure in years. Select the compound frequency (quarterly is standard) to see your maturity value and total interest earned. You can switch from quarterly compounding to monthly or yearly compounding depending on what compound scheme your banker offers.

Frequently asked questions

Current FD rates (2026)

Rates verified 5 July 2026

SBI 1-yr FD	6.80%
HDFC 1-yr FD	6.60%
Post Office 1-yr TD	6.90%
Senior Citizen (add)	+0.50%

Indicative rates compiled from public bank websites, RBI, and the Ministry of Finance for reference only. Actual rates depend on credit profile, tenure and product variant — confirm with the lender before applying.