FD Calculator — Calculate Exactly What Your Deposit Will Grow To

Fixed deposits remain one of India’s most trusted savings instruments — and for good reason. There is no market risk, the return is guaranteed, and you know exactly what you will receive at the end of the term. This FD calculator helps you find your maturity amount based on principal, interest rate, tenure, and compounding frequency.

Enter your deposit amount, the current rate offered by your bank, the tenure in years, and whether the bank compounds interest quarterly, monthly, half-yearly, or annually. Most Indian bank FDs use quarterly compounding, which is the default setting here.

Why Compounding Frequency Actually Matters

The more frequently interest is compounded, the higher your effective return. On a ₹5 lakh FD at 7 percent for 5 years, quarterly compounding gives you ₹7,07,390 at maturity. The same FD with annual compounding gives ₹7,01,276. The difference — about ₹6,100 — may seem small, but at ₹50 lakh and a longer tenure, it becomes far more significant.

Always check the compounding frequency when comparing FD offers across banks. A higher interest rate with annual compounding can sometimes yield less than a slightly lower rate with quarterly compounding.

Current FD Interest Rates in India — 2026

Bank FD rates currently range from 6.75 to 7.75 percent per annum for general customers. Senior citizens receive an additional 0.25 to 0.50 percent above the standard rate. Small finance banks and some NBFCs offer rates between 8 and 9.5 percent — higher returns, but with higher institutional risk. For amounts above ₹5 lakh, RBI deposit insurance covers only ₹5 lakh per depositor per bank, so spreading large FDs across banks is a sensible approach.

TDS on FD Interest — What You Need to Know

If your FD interest income from a single bank exceeds ₹40,000 in a financial year (₹50,000 for senior citizens), the bank deducts TDS at 10 percent. This does not eliminate your tax liability — it is an advance tax. You must still declare this income in your ITR and pay any remaining tax due at your slab rate.

If your total income is below the taxable threshold, submit Form 15G (for those below 60) or Form 15H (for senior citizens) to your bank at the start of each financial year to avoid TDS deduction entirely.

FD vs Other Safe Investment Options

Compared to savings accounts, FDs offer meaningfully higher returns in exchange for locking in your funds for the chosen tenure. Compared to liquid mutual funds, FDs offer predictability and no market risk, though liquid funds are typically more tax-efficient for short tenures. For truly risk-free returns over 1 to 5 years, FDs remain a practical choice, particularly for those who want certainty over potential.

Disclaimer: FD interest rates change periodically. Always check with your bank for current rates before investing.