Stax

FD Calculator

Calculate Fixed Deposit maturity amount and interest earned.

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Fixed Deposits in India

Fixed Deposits remain one of the safest and most popular investment options in India. With DICGC insurance cover up to ₹5 lakh per bank per depositor, and returns between 6–9% depending on the bank and tenure, FDs offer predictable growth for conservative investors.

How to get the best FD rate

  • Small Finance Banks — typically offer 0.5–1.5% higher rates than large PSU banks. DICGC insured up to ₹5L.
  • Tenure sweet spot — rates are often highest for 1–3 year tenures. Very short or very long tenures may have lower rates.
  • Senior citizen rates — if you or a family member is 60+, always book in their name for the additional 0.25–0.75% bonus.
  • Laddering — split your corpus across FDs of different maturities to avoid reinvestment risk and maintain liquidity.

FD vs other options

For post-tax returns, compare FD interest (taxed as income) against debt mutual funds, PPF (tax-free returns), or SGBs. For a 30% taxpayer, a 7.5% FD gives only ~5.25% post-tax yield, whereas PPF at 7.1% is fully tax-free.

Frequently asked questions

How is FD interest calculated?
FD interest is calculated using the compound interest formula: A = P × (1 + r/n)^(n×t), where P is principal, r is annual interest rate (as decimal), n is compounding frequency per year, and t is tenure in years. Most Indian bank FDs compound quarterly (n=4).
What is the compounding frequency for Indian bank FDs?
Most Indian banks (SBI, HDFC, ICICI, Axis) compound FD interest quarterly. Some small finance banks and NBFCs compound monthly, which gives a slightly higher effective yield for the same nominal rate.
Do senior citizens get a higher FD rate?
Yes. Most banks offer 0.25% to 0.75% additional interest to senior citizens (age 60+) on regular FDs. This calculator applies 0.5% additional rate when the senior citizen option is selected — adjust if your bank offers a different rate.
When is TDS deducted on FD interest?
TDS at 10% is deducted when annual FD interest exceeds ₹40,000 (₹50,000 for senior citizens). To avoid TDS if your total income is below the taxable limit, submit Form 15G (under 60) or Form 15H (60+) to your bank at the start of each financial year.
What is the difference between FD interest rate and yield?
The interest rate is the nominal annual rate stated by the bank. The yield (APY) is the effective annual return after accounting for compounding frequency. For a 7% rate compounded quarterly, the effective yield is 7.186% — slightly higher.

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