Fixed Deposit calculator that actually matches what banks pay
Quarterly compounding (Indian banks' default), TDS deducted at the right threshold, senior citizen +0.5%, and live rates from 8 major banks. No signup, no app — just answers.
Calculate FD Maturity
Enter the deposit amount, the bank's offered rate and tenure. We'll compute maturity using quarterly compounding (RBI default).
After 3 years at 7.00% quarterly compounding.
Year-by-year growth
Compare 8 major banks — current FD rates
These are 1-year general FD rates as of April 2026. Click "Use" to apply to the calculator above. Senior rate shown where bank publishes it; small finance banks (AU SFB, Equitas, etc.) often beat the public sector by 1%+.
| Bank | Regular Rate | Senior Rate | Best Tenure | |
|---|---|---|---|---|
| SBI | 6.80% | 7.30% | 2-3 years | |
| HDFC Bank | 7.00% | 7.50% | 15 months | |
| ICICI Bank | 6.90% | 7.40% | 15 months | |
| Axis Bank | 7.10% | 7.60% | 15 months | |
| Kotak Mahindra | 7.25% | 7.75% | 390 days | |
| IDFC First | 7.50% | 8.00% | 400-500 days | |
| Bandhan Bank | 7.85% | 8.35% | 1 year | |
| AU Small Finance | 7.75% | 8.25% | 2 years | |
| India Post (POTD) | 7.10% | 7.10% | 5 years |
Rates change frequently. Always confirm on the bank's website before locking in. Small finance banks offer better rates but verify DICGC insurance coverage (₹5 lakh per bank). Diversify across banks if you're depositing more.
How FD interest is calculated
The standard compound interest formula, with one Indian-specific twist: quarterly compounding by default (RBI norm). Some banks offer monthly for slightly higher returns.
M = P × (1 + r/n)n × t
- P — Principal (the amount you deposit)
- r — Annual interest rate (as decimal — 7% = 0.07)
- n — Compounding frequency per year (4 for quarterly, 12 for monthly)
- t — Tenure in years (fractional allowed: 1.5 = 18 months)
Worked example
Deposit ₹5,00,000 at 7% per annum, quarterly compounding, for 3 years:
M = 500000 × (1 + 0.07/4)4 × 3
M = 500000 × (1.0175)12
M = 500000 × 1.23229
M = ₹6,16,148
Interest earned = ₹1,16,148. That's a 23.23% effective yield over 3 years (vs 21% if it were simple interest).
FD interest is taxable — at your slab
This catches every first-time investor. Bank shows the gross interest in your AIS / 26AS — Income Tax knows about it whether or not TDS was deducted.
TDS rules (the easy part)
- Bank deducts 10% TDS if interest in a financial year exceeds ₹40,000 (₹50,000 for senior citizens).
- If you don't submit PAN, TDS rate jumps to 20%.
- TDS is a prepayment, not a final tax.
Slab tax (the part most people miss)
The full interest is added to your "Income from Other Sources". Final tax = your slab rate (5%, 20%, or 30% in old regime; 5-30% scaled in new regime).
- You may owe more than the 10% TDS if you're in the 20% or 30% slab — pay the difference as Self-Assessment Tax before filing ITR.
- You may owe less than 10% if you're below the basic exemption — submit Form 15G (under 60) or 15H (60+) to the bank to avoid TDS.
The 80TTB shortcut for seniors. If you're 60+, claim up to ₹50,000 deduction on FD interest under Section 80TTB (old regime only). Often makes interest under that threshold effectively tax-free.
FD laddering — the strategy banks won't tell you
Instead of putting ₹5L into a single 5-year FD, split it across 5 FDs of 1, 2, 3, 4, 5 years (₹1L each). When the 1-year matures, reinvest for 5. After year 4, every year an FD matures.
Why laddering wins
- Liquidity — one FD matures every year; no premature breakage penalty.
- Rate averaging — protects against locking 100% at a low rate.
- Tax planning — interest spreads across years; you can manage TDS thresholds.
When NOT to use FD
- Goal > 5 years away? Equity mutual funds historically beat FD by 4–8% annually. FD is for capital protection, not growth.
- Inflation 6%, FD 7% post-tax? You're earning ~1% real return. Treat FD as parking, not investing.
- Tax-saver FD (5-year lock-in)? ELSS funds offer same 80C benefit with 3-year lock-in and historically 12%+ returns.
Common questions
Is FD interest taxable in India?
Yes. FD interest is fully taxable as "Income from Other Sources" at your slab rate. Banks deduct TDS at 10% if interest exceeds ₹40,000 (₹50,000 for seniors) in a financial year. You must declare the full interest in your ITR even if no TDS was deducted.
What compounding frequency do Indian banks use?
Quarterly by default. A few banks (and corporate FDs) offer monthly compounding for slightly higher maturity. Always check the offer document — the difference between quarterly and monthly on a ₹10L FD over 5 years is roughly ₹4,000.
Do senior citizens get higher FD interest?
Yes. Most Indian banks offer 0.25%–0.75% extra to senior citizens (60+). Some banks have a separate "super senior" rate (80+) with another 0.10%. Use our calculator's senior toggle to factor it in (+0.50% applied).
Can I break my FD before maturity?
Yes, but most banks charge a penalty (0.5%–1% lower than the contracted rate, OR the rate applicable for the actual period — whichever is lower). Tax-saver FDs (5-year lock-in) cannot be broken at all. Loan against FD is often a better option for short-term needs.
Is FD safer than mutual funds?
FD principal is insured up to ₹5 lakh per bank under DICGC — beyond that you're an unsecured creditor. Mutual funds have no such guarantee but historically offer higher returns over long horizons (4–8% above FD typically). For goals 5+ years away, equity MFs usually beat FD.
What is FD laddering?
Splitting your investment across multiple FDs of different tenures (e.g., 1, 2, 3, 4, 5 years). When the shortest matures, reinvest it for 5 years. After year 4, one FD matures every year — giving liquidity AND average rates over time. Best strategy for retirees needing predictable annual cash flow.
Can I avoid TDS on FD legally?
Yes — submit Form 15G (under 60) or Form 15H (60+) to the bank if your total income is below the basic exemption limit. The form must be submitted at the start of the financial year for each bank/branch separately. False declaration is illegal — the form has a self-attestation clause with penalty.
Tax-saver FD — is it worth it?
Tax-saver FD has a 5-year lock-in and qualifies for 80C deduction (up to ₹1.5L). Old regime only. ELSS mutual funds offer the same 80C benefit with only 3-year lock-in and historically 12%+ returns vs FD's 7%. ELSS usually wins unless you have zero risk tolerance.
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Disclaimer: Bank rates listed are typical April 2026 ranges and change frequently — always verify on the bank's official website before depositing. TDS rules and tax treatment are based on the Income-tax Act, 1961 as amended by Finance Act 2025. This calculator provides estimates assuming the same rate over the entire tenure; actual returns may differ for floating-rate or tenure-based slab products. BillCraft is not a financial advisor and earns no commission from any bank.