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FD Calculator India (2026)

Calculate Fixed Deposit maturity, TDS, and compare bank rates instantly.

₹1L @ 7% for 5 yrs → ₹1,41,478

FD Details

₹1.0 L
10,0001,00,00,000
7% p.a.
3%12%
5 years
1 yrs10 yrs
Compounding
Invested Amount₹1,00,000
Est. Interest Earned₹41,478
Maturity Value₹1,41,478

FD Formula

The math behind your returns

A = P × (1 + r/n)n×t
P
Principal
r
Annual rate
n
Compounds/yr
t
Years
⚠️

Important Disclaimer

FD calculations are based on inputs provided. Actual returns may vary based on bank policies, premature withdrawal penalties, and TDS deductions. Verify rates on respective bank websites before investing.

Worked Example — How FD Maturity is Calculated

Ramesh, a 45-year-old Mumbai professional, invests ₹2,00,000 in HDFC Bank FD at 7.25% p.a. for 3 years with quarterly compounding.

A = P × (1 + r/n)^(n×t)

= ₹2,00,000 × (1 + 0.0725/4)^(4×3)

= ₹2,00,000 × (1.018125)^12

= ₹2,00,000 × 1.24027

= ₹2,48,054

  • Interest earned₹48,054
  • Annual interest (~₹16,018) — below ₹40,000 TDS limitNo TDS deducted ✓
  • If senior citizen (7.75% rate)₹2,51,273 (+₹3,219 more)

Current FD Interest Rates — May 2026

Updated: May 2026
Bank1 Year2 Years3 Years5 YearsSenior Citizen
Post Office TD6.90%7.00%7.10%7.50%Same rate
HDFC Bank7.10%7.25%7.25%7.00%+0.50%
ICICI Bank7.10%7.20%7.20%7.00%+0.50%
Axis Bank7.10%7.20%7.20%7.00%+0.75%
SBI6.80%7.00%6.75%6.50%+0.50%
Kotak Mahindra7.10%7.25%7.20%6.90%+0.50%
Yes Bank7.50%7.75%7.25%7.25%+0.50%

Rates are indicative. Verify on official bank websites before investing. Next update: June 2026.

FD Maturity Quick Reference — ₹1 Lakh, Quarterly Compounding

Tip: For ₹5 lakh, multiply all values by 5. For ₹10 lakh, multiply by 10.

Rate1 Year2 Years3 Years5 Years
6.50%₹1,06,716₹1,13,869₹1,21,386₹1,38,041
7.00%₹1,07,229₹1,14,980₹1,23,144₹1,41,478
7.25%₹1,07,486₹1,15,537₹1,24,027₹1,43,218
7.50%₹1,07,763₹1,16,096₹1,24,948₹1,44,995
7.75%₹1,08,031₹1,16,657₹1,25,864₹1,46,793

TDS on FD Interest — What You Need to Know (2026)

TDS applies when your total FD interest from one bank exceeds ₹40,000 in a financial year (₹50,000 for senior citizens).

ScenarioTDS Rate
PAN submitted, interest > limit10%
No PAN submitted20%
Senior citizen, PAN submitted10%
Form 15G / 15H submitted0%

Important: TDS is deducted by the bank, but FD interest is fully taxable at your income slab rate. TDS is not a final tax — declare FD interest in ITR under "Income from Other Sources."

Form 15G: For below-60 taxpayers whose total income is below taxable limit. Form 15H: For senior citizens (60+) whose tax liability is nil.

Example: Ramesh earns ₹48,054 FD interest. Bank deducts ₹4,805 TDS (10%).

In ITR (20% slab): Total tax = ₹9,611. Additional tax payable = ₹9,611 − ₹4,805 = ₹4,806.

Tax-Saving FD — Section 80C Deduction

A Tax-Saving FD allows you to claim deduction up to ₹1,50,000 under Section 80C.

FeatureRegular FDTax-Saving FD
Lock-in periodFlexible5 years (mandatory)
Premature withdrawalAllowed (with penalty)NOT allowed
Loan against FDAllowedNOT allowed
80C deductionNoYes, up to ₹1.5 lakh
Interest taxabilityFully taxableFully taxable
Auto-renewalAvailableNOT available

Example: Ramesh (30% slab) invests ₹1,50,000 in Tax-Saving FD → saves ₹45,000 in income tax that year. Combined with FD interest of ~₹10,500/yr at 7%, effective post-tax yield improves significantly in year 1.

Best for: 20–30% tax bracket | Not ideal for: 0–5% slab (minimal tax saving, 5-yr liquidity lost)

FD vs RD vs Debt Mutual Fund — Which is Right for You?

FactorFixed DepositRecurring DepositDebt Mutual Fund
Investment typeLump sumMonthly instalmentsLump sum or SIP
ReturnsFixed (6.5–7.75%)Fixed (6–7%)Variable (7–9%)
Capital guaranteeYes (up to ₹5L)Yes (up to ₹5L)No
TaxationSlab rateSlab rateSlab rate (post 2023)
LiquidityModerateModerateHigh (T+1/T+2)
TDS applicableYesYesNo (self-declare)
Best forLump sum parkingMonthly savingBetter post-tax yield

💡 DICGC insurance covers FD + savings + RD up to ₹5 lakh per bank per depositor. Spread large FD amounts across multiple banks if exceeding ₹5 lakh.

Post Office Time Deposit vs Bank FD — 2026

Post Office FD (Time Deposit) offers 7.50% for 5 years — higher than SBI (6.50%) and competitive with the best private banks, backed by the Government of India.

FeaturePost Office TDBank FD
5-year rate7.50%6.50–7.25%
Backed byGovernment of IndiaRBI / DICGC (₹5L)
RiskZero (sovereign)Very low (insured)
80C benefitYes (5-year only)Yes (5-year only)
Premature withdrawalAfter 6 monthsAfter 7 days
Online accessIndia Post appNet banking / app

Who Should (and Should Not) Invest in FD?

✅ FD is ideal for:

  • Retirees and senior citizens needing guaranteed income
  • Emergency fund parking (3–6 months expenses)
  • Short-term goals (1–3 years) where market risk is unacceptable
  • Tax-saving with 5-year Tax-Saving FD under Section 80C
  • People in 0–5% tax bracket (tax drag is minimal)

⚠️ FD is NOT ideal for:

  • Long-term wealth creation (inflation-adjusted real return is low)
  • People in 30% tax bracket for long durations (post-tax yield < inflation)
  • Goals over 7+ years (equity mutual funds give far better real returns)

Frequently Asked Questions — FD Calculator

What is the TDS limit on FD interest in 2026?
₹40,000/year for regular citizens, ₹50,000 for senior citizens. TDS at 10% with PAN, 20% without. Submit Form 15G (below 60) or Form 15H (senior citizens) if total income is below the taxable limit to get zero TDS deducted.
Which bank has the highest FD rate in India in 2026?
Yes Bank offers up to 7.75% for select tenures. Among large banks, HDFC and ICICI offer up to 7.25%. Post Office Time Deposit offers 7.50% for 5 years — backed by the Government of India.
Is FD interest taxable in India?
Yes. FD interest is fully taxable as "Income from Other Sources" at your income slab rate. There is no concessional rate like equity LTCG. However, you can claim TDS credit and submit Form 15G/15H to avoid TDS deduction at source.
What is the DICGC insurance limit on FDs?
₹5 lakh per depositor per bank — covering principal + interest combined across all accounts in that bank. If your FD exceeds ₹5 lakh, consider spreading across multiple banks for full insurance coverage.
Can I break an FD before maturity?
Yes, for regular FDs (not Tax-Saving). Penalty is typically 0.5–1% reduction on the applicable interest rate. SBI charges 0.50% for deposits up to ₹5 lakh and 1% above. Tax-Saving FDs cannot be broken before 5 years.
What is the minimum FD amount?
₹1,000 at SBI and most public sector banks. ₹5,000 at HDFC Bank. ₹10,000 at ICICI Bank. ₹1,000 at Post Office. No maximum limit at most banks.
Is quarterly or monthly compounding better for FD?
Quarterly compounding gives slightly higher returns because interest is reinvested quarterly. For ₹1 lakh at 7% for 5 years: quarterly = ₹1,41,478 vs annual = ₹1,40,255 — difference of ₹1,223. Always choose the highest compounding frequency available.
How does a Tax-Saving FD differ from a regular FD?
Tax-Saving FD has a mandatory 5-year lock-in and offers Section 80C deduction up to ₹1.5 lakh. No premature withdrawal, no loan against it, no auto-renewal. Interest is still fully taxable. Best for people in the 20–30% tax bracket wanting guaranteed returns with tax saving.

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Content by Satyapal Khakhal, Founder, gpaisa.in | Updated: May 2026