FD Calculator

Enter the deposit, the rate your bank offers and the tenure. Pick the compounding the bank uses (quarterly for most Indian banks) or simple interest for a deposit that pays interest out instead of adding it to the balance.

How to use the FD calculator

1. Deposit amount: the amount you place in the fixed deposit.
2. Interest rate: the yearly rate on the bank’s FD rate card for your tenure. Senior citizens usually get 0.25% to 0.5% more, so use the senior rate if it applies.
3. Tenure: from three months to ten years, in steps of a quarter. Enter 1.5 for 18 months.
4. Compounding: quarterly is the default because most Indian banks compound cumulative FDs every quarter. Choose simple interest for a non-cumulative FD that pays interest monthly or quarterly to your savings account.

The result shows the maturity value, the deposit, the interest earned and the effective annual yield.

How FD interest is calculated

For a cumulative FD, the bank adds interest to the deposit at the end of each quarter, and the next quarter’s interest is worked out on the larger amount:

Maturity value = P × (1 + r ÷ k)^(k × t)

P is the deposit, r the yearly rate as a decimal, k the number of compounding periods a year (4 for quarterly) and t the tenure in years.

With the defaults, ₹1 lakh at 7% for 5 years:

Compounding	Maturity value	Interest	Effective yield
Quarterly	₹1,41,478	₹41,478	7.19%
Monthly	₹1,41,763	₹41,763	7.23%
Yearly	₹1,40,255	₹40,255	7.00%
Simple interest (payout)	₹1,35,000	₹35,000	6.19%

Quarterly compounding turns a 7% rate into a 7.19% effective yield, which banks sometimes show as the annualised yield on their rate cards. A non-cumulative FD pays ₹7,000 a year in payouts, ₹35,000 over five years, because the interest leaves the deposit and earns nothing further. If you reinvest the payouts, for example in a recurring deposit, you get some of the difference back.

Cumulative or non-cumulative?

• Cumulative FDs suit money you will not need until maturity. Interest compounds and you get it all at the end.
• Non-cumulative FDs suit people who need regular income, such as retirees. Interest is paid monthly, quarterly, half-yearly or yearly. Monthly payouts are usually at a slightly lower rate, so that they add up to the same as quarterly ones.

Comparing tenures

Banks set a different rate for each tenure bucket, and the highest rate is often in the middle, for example on a 400-day or 444-day special scheme. Example rates on ₹1 lakh, compounded quarterly:

Tenure	Rate	Interest	Maturity value
1 year	6.50%	₹6,660	₹1,06,660
2 years	7.00%	₹14,888	₹1,14,888
3 years	7.10%	₹23,508	₹1,23,508
5 years	6.75%	₹39,750	₹1,39,750

These are illustrations, not quotes. Check the current rate card and run the calculator for each tenure you are considering. Small finance banks and some NBFCs pay more than large banks, but read the next section on safety before chasing the highest rate.

Laddering FDs

Instead of putting ₹5 lakh into one five-year FD, you can split it into five FDs of ₹1 lakh maturing after one, two, three, four and five years. Each year one FD matures. If you do not need the money, renew it for five years at the rate on offer then. After a few years every FD is a five-year deposit, which usually earns more than short ones, and one still matures every year. A ladder gives you regular access to part of the money without breaking deposits, and it averages out rate changes, so you are never locked entirely into a low rate after the RBI cuts or out of a high one after it raises. Run each rung through the calculator to see what the ladder pays in total.

Safety and deposit insurance

Deposits in banks, including small finance banks and cooperative banks, are insured by DICGC up to ₹5 lakh per depositor per bank, covering principal and interest together. That limit applies across all your accounts at the same bank in the same capacity. To keep large sums fully covered, split them across banks.

Corporate FDs from NBFCs and housing finance companies are not covered by DICGC. They usually pay more and carry credit ratings; stick to the highest-rated ones if you use them, and do not put more into one company than you could afford to have delayed.

Tax on FD interest

FD interest is added to your income and taxed at your slab rate in the year it accrues, even for a cumulative FD where you receive it only at maturity. Many people pay tax only at maturity, which can bunch several years of income into one year and attract interest for late payment, so it is better to declare it every year.

Banks deduct TDS at 10% when your interest from that bank in a financial year crosses the threshold: ₹50,000 for most depositors and ₹1 lakh for senior citizens, from 2025-26. Without a PAN, TDS is 20%. If your total income is below the taxable limit, submit Form 15G (or 15H for senior citizens) at the start of the year to avoid TDS. TDS is not the final tax: you pay the balance if your slab is higher, or claim a refund if it is lower.

The calculator shows interest before tax. For an approximate post-tax figure, multiply the interest by one minus your tax rate. At a 30% slab plus cess, ₹41,478 of interest leaves about ₹28,500.

Tax-saver FDs

A five-year tax-saver FD qualifies for a deduction of up to ₹1.5 lakh under Section 80C in the old tax regime. It has a five-year lock-in with no premature withdrawal or loan facility, and the interest is still taxable. In the new regime there is no deduction, so a regular FD with better liquidity usually makes more sense.

Premature withdrawal

Most banks let you break an FD early, but pay interest at the rate for the period the money actually stayed in, minus a penalty of usually 0.5% to 1%. Breaking a five-year FD after two years at a lower two-year rate and a penalty can cost a large part of the interest. If you might need part of the money, split it into several smaller FDs instead of one large one, so you only break what you need. Many banks also offer a loan or overdraft against an FD at 1% to 2% above the FD rate, which can be cheaper than breaking it.

FD, RD or something else?

An FD needs a lump sum. If you want to save a fixed amount each month, use the RD calculator. For money you will not touch for 15 years, the PPF calculator shows how a tax-free PPF compares. For long-term goals where you can accept risk, compare with the SIP calculator. And if you have a home loan at a higher rate than your FD earns after tax, the loan prepayment calculator may show a better use for the money.

Also add a nominee to every FD. It makes claims for your family much simpler, and most banks let you do it online in a minute, and you can name up to four nominees under the 2025 banking law changes.

The calculator runs in your browser. Nothing you enter is stored or sent.

Frequently asked questions

How much interest will ₹1 lakh earn in an FD for 1 year?

At 7% compounded quarterly, about ₹7,186. At 6.5% it is about ₹6,660, and at 7.5% about ₹7,714. The calculator gives the exact figure for your rate. The interest is taxable at your slab rate.

Do Indian banks compound FD interest quarterly?

Most do, for cumulative deposits of six months or more. Short deposits of under six months often earn simple interest. Non-cumulative FDs pay interest out, so they do not compound. Your bank’s FD terms state the method.

Is FD interest taxable even if I do not withdraw it?

Yes. Interest on a cumulative FD is taxable each year as it accrues, not only at maturity. Banks deduct TDS on the accrued interest once it crosses the threshold, even though nothing is paid out. Declare it in your return every year.

What is the effective yield on an FD?

It is the yearly return after compounding. A 7% FD compounded quarterly grows by about 7.19% a year. It lets you compare FDs with different compounding methods, and with products like bonds that quote a yearly yield.

How can I avoid TDS on my FD?

If your total income is below the taxable limit, submit Form 15G, or Form 15H if you are 60 or older, to each bank at the start of the financial year. If your income is taxable, TDS cannot be avoided, but it is adjusted against your final tax when you file your return.

Is my FD safe if the bank fails?

Up to ₹5 lakh per depositor per bank is insured by DICGC, including interest. Amounts above that are not insured. Corporate FDs from NBFCs are not covered at all. Spreading large deposits across banks keeps them within the insured limit.