FD Calculator

Q: Is FD better than SIP?

FD offers guaranteed, fixed returns (6–8%) with capital protection. SIP in equity mutual funds can give 10–14% over long periods but carries market risk. For short-term goals (under 3 years) or risk-averse investors, FD is better. For long-term wealth creation, SIP wins.

Q: When is TDS deducted on FD interest?

Banks deduct 10% TDS on FD interest if total interest exceeds ₹40,000 per year (₹50,000 for senior citizens). Submit Form 15G (or 15H for seniors) if your total income is below the taxable limit to avoid TDS.

Q: Can I open a joint FD?

Yes, joint FDs are allowed with up to 3 holders. Interest is taxed in the name of the first/primary holder. In case of death, the surviving joint holder gets the maturity amount without legal hassle.

Q: What is the best tenure for an FD?

Banks typically offer the highest rates for 1–3 year tenures. Check your bank's rate card — often 1-year, 15-month, or 2-year FDs get special rates. Avoid locking in for 5+ years at current rates if you expect rates to rise.

FD Calculator Regular

Deposit Amount (₹) ₹1,00,000

Minimum ₹10,000 — Maximum ₹50,00,000

Annual Interest Rate (%) 6.50%

Tenure 2 Years

Months Years

Compounding Frequency

Your FD Returns

Maturity Amount

₹1,14,752

Principal Amount

₹1,00,000

Interest Earned

₹14,752

Effective Annual Yield

6.66%

Tax Deducted (TDS)

₹0

Principal vs Interest Growth by Year

Senior Citizen FD +0.5% Extra

Deposit Amount (₹) ₹1,00,000

Annual Interest Rate (%) 7.00%

Base rate auto-adjusted +0.5% for senior citizens

Tenure 2 Years

Months Years

Compounding Frequency

Senior Citizen Returns

Maturity Amount

₹1,15,969

Principal Amount

₹1,00,000

Interest Earned

₹15,969

Effective Annual Yield

7.18%

TDS (₹50K threshold)

₹0

Senior Citizen FD Growth by Year

Tax Saver FD Section 80C

5-Year Lock-In: Tax Saver FDs have a mandatory 5-year lock-in. Max investment ₹1.5L under Section 80C. Premature withdrawal is not allowed.

Deposit Amount (₹) ₹1,00,000

Maximum ₹1,50,000 (80C limit)

Annual Interest Rate (%) 6.50%

Compounding Frequency

Your Tax Slab

Tax Saver FD Returns (5 Years)

Maturity Amount

₹1,41,478

Principal Amount

₹1,00,000

Interest Earned

₹41,478

Tax Saved (80C)

₹20,000

Effective Yield

6.66%

Interest is taxable annually as per your income slab, not at maturity.

Tax Saver FD Growth (5 Years Fixed)

What is a Fixed Deposit (FD)?

A Fixed Deposit (FD) is a savings instrument offered by banks and NBFCs where you deposit a lump sum for a fixed tenure at a guaranteed interest rate. Unlike savings accounts, the interest rate on an FD does not change during the tenure — giving you predictable, assured returns.

FDs are one of India's most popular investment options, with over ₹180 lakh crore invested across banks. They are backed by DICGC (Deposit Insurance and Credit Guarantee Corporation) insurance up to ₹5 lakh per depositor per bank, making them extremely safe.

How FD Interest is Calculated

Banks use the compound interest formula for FDs:

A = P × (1 + r/n)^(n×t) Where: A = Maturity Amount P = Principal (deposit amount) r = Annual interest rate (as decimal, e.g. 0.065 for 6.5%) n = Number of compounding periods per year (Monthly=12, Quarterly=4, Half-Yearly=2, Yearly=1) t = Tenure in years Interest Earned = A − P Effective Annual Yield = (A/P)^(1/t) − 1

Example: ₹1,00,000 at 6.5% for 2 years, compounded quarterly: A = 1,00,000 × (1 + 0.065/4)^(4×2) = ₹1,13,825

FD Interest Rates — Major Banks (Indicative, subject to change)

The following rates are indicative for general category (below 60 years). Rates are updated frequently; always check your bank's official website before investing.

Bank	1 Year	2 Years	3 Years	5 Years
SBI	6.80%	7.00%	6.75%	6.50%
HDFC Bank	6.60%	7.00%	7.00%	7.00%
ICICI Bank	6.70%	7.00%	7.00%	7.00%
Axis Bank	6.70%	7.10%	7.10%	7.00%
Kotak Mahindra	7.10%	7.10%	7.00%	6.20%

Rates shown are for indicative purposes only. Bank interest rates change frequently based on RBI policy. Always verify current rates at your bank before investing.

FD vs RD vs Savings Account

Feature	Fixed Deposit	Recurring Deposit	Savings Account
Investment type	Lump sum	Monthly installments	Flexible
Typical rate	6.5–8%	5.5–7%	2.5–4%
Liquidity	Low (penalty on early exit)	Low	High
Capital safety	Very High	Very High	Very High
Suitable for	Lump sum parking	Monthly savers	Daily transactions

Senior Citizen FD Benefits

Banks offer additional interest of 0.25% to 0.50% per annum to depositors aged 60 years and above. This effectively boosts returns significantly over a 5-year period. Also, the TDS threshold for senior citizens is ₹50,000 (vs ₹40,000 for regular depositors). Senior citizens can submit Form 15H to avoid TDS deduction if their income is below the taxable limit.

Tax on FD Interest

FD interest is fully taxable as "Income from Other Sources" in your hands, added to your total income and taxed at your applicable slab rate.

TDS threshold: Banks deduct 10% TDS if total interest from FDs at that bank exceeds ₹40,000/year (₹50,000 for senior citizens)
PAN not submitted: TDS rate increases to 20%
Form 15G/15H: Submit to the bank if your total annual income is below the taxable limit — no TDS will be deducted
Tax Saver FD (80C): The principal is deductible under Section 80C up to ₹1.5L. But interest earned is fully taxable every year

Frequently Asked Questions

What is the minimum amount to open an FD? +

Most banks allow FDs starting from ₹1,000. SBI starts at ₹1,000, HDFC Bank at ₹5,000, and ICICI Bank at ₹10,000. Small finance banks like AU Small Finance Bank or Jana Small Finance Bank often allow FDs from ₹1,000 and offer higher rates (8–9%).

Can I withdraw my FD before maturity? +

Yes, most FDs allow premature withdrawal with a penalty of 0.5–1% on the applicable interest rate. For example, if you locked in at 6.5% and withdraw early, you may get only 5.5–6% for the period held. Tax Saver FDs (80C) have a mandatory 5-year lock-in and cannot be broken early under any circumstances.

Is FD better than SIP in mutual funds? +

FD offers guaranteed returns (typically 6–8%) with complete capital protection and DICGC insurance up to ₹5L. SIP in equity mutual funds can generate 10–14% CAGR over the long term (10+ years) but carries market risk — your NAV can fall in the short term. For short-term goals (under 3 years), emergency funds, or risk-averse investors, FD is the better choice. For long-term wealth creation and inflation-beating returns, SIP wins.

When is TDS deducted on FD interest? +

Banks deduct TDS (Tax Deducted at Source) of 10% when total FD interest from that bank exceeds ₹40,000 in a financial year (₹50,000 for senior citizens). If you have multiple FDs at the same bank, the interest is aggregated. To avoid TDS if you are not in a taxable bracket, submit Form 15G (below 60 years) or Form 15H (above 60 years) at the start of every financial year.

Can I open a joint FD? +

Yes, you can open a joint FD with up to 3 account holders. Interest is credited and TDS is applied in the name of the first/primary holder. Nomination is allowed. If the primary holder passes away, the surviving joint holder receives the maturity amount without requiring a succession certificate — a significant advantage over other investments.

What is the best tenure for an FD? +

Banks typically offer peak interest rates for 1–3 year tenures, often with special rates for specific periods like 400 days, 15 months, or 2 years. It is generally not advisable to lock in for 5+ years if interest rates are expected to rise. Instead, consider laddering — split your deposit into multiple FDs with different tenures (e.g., ₹33K for 1 year, ₹33K for 2 years, ₹34K for 3 years) to balance liquidity and returns.

FD Calculator Regular

Principal vs Interest Growth by Year

Senior Citizen FD +0.5% Extra

Senior Citizen FD Growth by Year

Tax Saver FD Section 80C

Tax Saver FD Growth (5 Years Fixed)

What is a Fixed Deposit (FD)?

How FD Interest is Calculated

FD Interest Rates — Major Banks (Indicative, subject to change)

FD vs RD vs Savings Account

Senior Citizen FD Benefits

Tax on FD Interest

Frequently Asked Questions

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