FD calculator guide
What is an FD Calculator?
An FD (Fixed Deposit) Calculator estimates the maturity value and total interest you earn on a fixed deposit. You enter the deposit amount, the annual interest rate, the tenure and the compounding frequency, and the calculator returns the maturity amount, the interest earned and sometimes the effective annual yield.
Fixed deposits are one of the most predictable savings products in India. The rate is locked in at the time of booking, and the maturity value is known in advance. An FD calculator removes the guesswork from planning: you can see exactly how much a deposit will grow over one, three, five or ten years.
This page explains the formula banks use, how compounding frequency changes the result, how TDS and tax affect your in-hand return, what happens if you withdraw early, and how FD compares with other savings options. Use the calculator above to run your own numbers.
What this calculator shows you
- Maturity value — the total amount you receive at the end of the tenure.
- Total interest earned — the difference between the maturity value and the principal.
- Principal — the amount you deposited.
- Effective annual yield — the actual annual return after taking compounding into account.
- Year-wise growth — how the balance rises each year when interest is reinvested.
- Senior citizen rate — many calculators let you toggle the extra 0.50% rate offered to depositors aged 60 and above.
Tip: A 0.25% difference in FD rate may look small, but on a ₹10 lakh deposit over five years it is worth roughly ₹15,000. Always compare rates across banks and tenures before booking. Small finance banks often offer higher rates than large private or public sector banks.
How to use the FD calculator
- Enter the deposit amount — the lump sum you plan to put into the FD.
- Enter the annual interest rate. Check whether the rate is for the general public or for senior citizens.
- Enter the tenure in years, months or days. Most banks accept FDs from 7 days to 10 years.
- Choose the compounding frequency. Cumulative FDs usually compound quarterly; some banks compound monthly or half-yearly.
- Select the deposit type — cumulative (interest reinvested) or non-cumulative (interest paid out periodically).
- Read the maturity value and the total interest.
- Change the tenure by one or two years and see how the maturity value moves. A longer tenure usually gives a higher rate.
- If you are a senior citizen, toggle the senior citizen option to see the higher rate.
FD maturity formula
A = P × (1 + r/n)n×t
- A — maturity value
- P — principal (deposit amount)
- r — annual interest rate in decimal (for 7%, use 0.07)
- n — number of times interest is compounded per year (4 for quarterly)
- t — tenure in years
For quarterly compounding, which is the most common for cumulative FDs in India, the formula simplifies to:
A = P × (1 + r/400)4t
where r is the annual rate as a percentage (e.g., 7 for 7%) and 4t is the number of quarters.
Example: A ₹2,00,000 deposit at 7% for 3 years with quarterly compounding. A = 200000 × (1 + 7/400)12 = 200000 × (1.0175)12 ≈ ₹2,46,335. Total interest ≈ ₹46,335.[reference:0]
If the FD is non-cumulative and pays interest monthly or quarterly, the interest is not reinvested. The simple interest formula applies to each payout: Interest per period = P × r × period/12. The maturity value in a non-cumulative FD is just the principal, because the interest has already been paid out.
Cumulative vs non-cumulative FD
Point
Cumulative FD
Non-cumulative FD
Interest payment
Reinvested and paid at maturity
Paid monthly, quarterly, half-yearly or yearly
Maturity value
Higher, because interest compounds
Equal to principal
Best for
Growing a lump sum; reinvesting idle money
Regular income needs; retirees
Effective yield
Higher than the headline rate
Close to the headline rate
A cumulative FD at 7% compounded quarterly gives an effective annual yield of about 7.19%. A non-cumulative FD at the same rate gives exactly 7% if interest is paid yearly. The gap widens over longer tenures.
FD interest rates in India (October 2026)
FD rates vary widely by bank and tenure. Small finance banks generally offer the highest rates, followed by private banks, then public sector banks. Senior citizens usually get an extra 0.50% across tenures. The table below shows indicative rates for a few major banks. Check the bank’s website for the exact rate for your chosen tenure and deposit amount.[reference:1]
Bank
Highest rate (general)
Suryoday Small Finance Bank Up to 8.25% Utkarsh Small Finance Bank Up to 8.10% Equitas Small Finance Bank Up to 8.00% Ujjivan Small Finance Bank Up to 7.80% Bandhan Bank Up to 7.45% IDFC FIRST Bank Up to 7.10% HDFC Bank Up to 6.50% ICICI Bank Up to 6.50% State Bank of India Up to 6.45% Bank of Baroda Up to 6.75%
Rates are indicative and change frequently. Senior citizens often get 0.50% more. Some banks offer higher rates for specific tenures, such as 444 days or 1–2 years. Always confirm the current rate on the bank’s website or branch.
Tax on FD interest
Interest earned on FD is fully taxable. It is added to your total income and taxed at your slab rate. Banks deduct TDS at 10% if the interest paid or credited in a financial year exceeds the threshold. If you have not submitted PAN, the TDS rate is 20%.[reference:2]
Depositor type
TDS threshold (per financial year)
General citizens (below 60) ₹50,000 Senior citizens (60 and above) ₹1,00,000
If your total income is below the taxable limit, you can submit Form 15G (below 60) or Form 15H (60 and above) to the bank to avoid TDS. The TDS is not an extra tax — it is an advance against your final liability. If TDS is more than your actual tax, you can claim a refund when you file your return. Use the Income Tax Calculator to estimate your slab and tax.[reference:3]
Senior citizens can also claim a deduction of up to ₹50,000 on interest income under Section 80TTB, which reduces the taxable portion.
Premature withdrawal
Fixed deposits can be withdrawn before maturity, but there is usually a penalty. The bank may reduce the interest rate to the rate applicable for the period the deposit actually ran, and then deduct a penalty of 0.50% to 1% from that rate. Some banks do not allow withdrawal in the first 3 months except in emergencies.[reference:4]
For example, if you booked a 3-year FD at 7% and withdraw after 1 year, the bank may apply the 1-year rate (say 6%) minus a 0.50% penalty, giving an effective rate of 5.50% for the year. If you had simply booked a 1-year FD, you would have earned 6%. The penalty cost is the difference.
Some deposits, like tax-saving FDs with a 5-year lock-in, cannot be withdrawn early at all. Read the terms before booking. If you need liquidity, consider a shorter tenure or a sweep-in FD that allows partial withdrawal without penalty.
Illustrative examples
Sample calculations. Actual rates and maturity values depend on the bank and tenure you choose.
Principal
Rate
Tenure
Compounding
Approx. maturity
Approx. interest
₹1,00,000
7.00%
1 year
Quarterly
≈ ₹1,07,186
≈ ₹7,186
₹1,00,000
7.00%
5 years
Quarterly
≈ ₹1,41,478
≈ ₹41,478
₹5,00,000
7.25%
3 years
Quarterly
≈ ₹6,21,000
≈ ₹1,21,000
₹10,00,000
8.00%
2 years
Quarterly
≈ ₹11,71,600
≈ ₹1,71,600
₹5,00,000 (senior)
7.50%
5 years
Quarterly
≈ ₹7,24,000
≈ ₹2,24,000
The senior citizen example assumes an extra 0.50% over the general rate. The difference in maturity value compared with a general FD at 7% is roughly ₹15,000 over five years on a ₹5 lakh deposit.
How to read the result
- Maturity value — the amount you receive at the end of the tenure. This is before TDS if the bank deducts it at source.
- Total interest — the gain from the deposit. Compare it with the principal to see how much of the maturity value is your original money.
- Effective annual yield — the true annual return after compounding. Use this to compare FDs with different compounding frequencies.
- Year-wise growth — shows how compounding accelerates in later years. The interest in year 5 is higher than in year 1 because the base has grown.
- Post-tax maturity — subtract the tax on interest to get your in-hand amount. The calculator usually shows pre-tax figures.
FD vs RD vs PPF vs SIP
Feature
FD
RD
PPF
SIP
Investment type
Lump sum
Monthly
Yearly
Monthly
Returns
Fixed, guaranteed
Fixed, guaranteed
Fixed, government-backed
Market-linked, not guaranteed
Tenure
7 days to 10 years
6 months to 10 years
15 years
Flexible
Tax
Interest taxable
Interest taxable
EEE (exempt-exempt-exempt)
Taxed on withdrawal
Liquidity
Premature withdrawal with penalty
Premature closure allowed
Restricted; partial withdrawal after 7 years
High; redeem anytime
Best for
Parking idle funds for a fixed period
Building a corpus through monthly savings
Long-term tax-free saving
Long-term wealth creation
FD and RD are for capital safety and predictable returns. PPF offers a government guarantee and tax-free returns but locks money for 15 years. SIP is for long-term growth but carries market risk. Most investors use a mix: emergency funds in FD or RD, retirement savings in PPF or SIP depending on risk appetite.
Common mistakes to avoid
- Not comparing rates across banks. The same tenure can fetch 6.45% at one bank and 8.25% at another. A 1.80% difference compounds significantly.
- Ignoring the compounding frequency. A quarterly compounded FD yields more than a yearly compounded one at the same headline rate.
- Forgetting tax on interest. FD interest is taxed at your slab rate. A 7% FD for someone in the 30% slab gives an effective post-tax return of about 4.90%.
- Booking a long tenure without checking liquidity needs. Premature withdrawal penalties can eat into returns.
- Keeping more than ₹5 lakh in a single bank. Deposit insurance covers up to ₹5 lakh per depositor per bank. Spread large deposits across banks.
- Not submitting Form 15G/15H when eligible. If your income is below the taxable limit, you can avoid TDS and the hassle of claiming a refund.
- Reinvesting maturity without comparing rates. Rates change. Check whether a better rate is available before renewing.
- Using FD for long-term goals without adjusting for inflation. A 7% FD in a 6% inflation environment gives a real return of about 1%. Use the Inflation Calculator to see the impact.
Frequently asked questions
What is the minimum amount for an FD?
Most banks accept FDs starting from ₹1,000, and some allow as little as ₹100. There is no upper limit, though very large deposits may need to be spread across banks to stay within the ₹5 lakh deposit insurance cover.
What is the minimum and maximum tenure for an FD?
Tenures range from 7 days to 10 years. Some banks offer special tenures like 444 days or 1,000 days with slightly higher rates. The rate usually increases with tenure, but not always — some banks offer their best rates for 1–2 year deposits.
How is FD interest calculated?
For cumulative FDs, interest is compounded quarterly using the formula A = P × (1 + r/400)4t. For non-cumulative FDs, simple interest is calculated and paid out periodically. Most banks round the maturity value to the nearest rupee.
Is FD interest taxable?
Yes. FD interest is added to your total income and taxed at your slab rate. Banks deduct TDS at 10% if interest exceeds ₹50,000 (₹1,00,000 for senior citizens) in a financial year. You can avoid TDS by submitting Form 15G or 15H if your income is below the taxable limit.
Can I withdraw my FD before maturity?
Yes, most FDs allow premature withdrawal, but a penalty applies. The bank may reduce the interest rate to the rate applicable for the actual period held, minus a penalty of 0.50% to 1%. Tax-saving FDs with a 5-year lock-in cannot be withdrawn early.
What is a senior citizen FD rate?
Banks typically offer 0.50% extra to depositors aged 60 and above. Some small finance banks offer up to 0.75% extra. The higher rate applies to both cumulative and non-cumulative FDs.
What is a tax-saving FD?
A tax-saving FD has a 5-year lock-in and qualifies for deduction under Section 80C up to ₹1,50,000. The interest is taxable. Premature withdrawal is not allowed. It is suitable only if you are in the old tax regime and need the 80C deduction.
Can I get a loan against my FD?
Yes. Most banks offer loans or overdrafts against FDs, usually up to 90% of the deposit value. The interest rate on the loan is typically 1–2% higher than the FD rate. This can be a better option than breaking the FD, especially if the remaining tenure is short.
Is FD safe?
Bank FDs are among the safest savings instruments in India. Deposits up to ₹5 lakh per depositor per bank are insured by the DICGC. For larger amounts, spread deposits across multiple banks. Corporate FDs carry higher credit risk and are not covered by deposit insurance.
How does FD compare with PPF?
FD offers flexibility and higher rates from small finance banks, but interest is taxable. PPF has a lower rate (currently 7.1%) and a 15-year lock-in, but returns are tax-free and government-backed. Use the PPF Calculator to compare.
Related calculators
Income Tax Calculator
Salary Calculator
PPF Calculator
SIP Calculator
Compound Interest Calculator
CAGR Calculator
Inflation Calculator
Retirement Planning Calculator
EMI Calculator
Home Loan Calculator
Loan Calculator
BMI Calculator
Age Calculator
Discount Calculator
Related guides
Personal Finance Calculator Guide
Wealth Creation Strategy in India
KCC Loan 2026: Limit, Rate and Rules
Checklist before booking an FD
- Rate compared across at least three banks for the same tenure
- Compounding frequency confirmed (quarterly is most common)
- Senior citizen rate checked if applicable
- Tax on interest estimated for your slab
- TDS threshold checked and Form 15G/15H submitted if eligible
- Premature withdrawal penalty and lock-in read in the terms
- Deposit spread across banks to stay within ₹5 lakh insurance cover
- Maturity instruction set (renew, credit to account, or reinvest)
- Nominee added to the FD
- Emergency fund kept separate from long-term FDs
Disclaimer: This FD calculator and the content on this page are for education and mathematical estimation only. They are not investment advice, a guarantee of returns, or a substitute for professional consultation. FD interest rates change frequently and vary by bank, tenure and deposit amount. Tax treatment depends on your income slab and the current provisions of the Income-tax Act. Premature withdrawal penalties and terms are set by the bank. Results depend entirely on the inputs you enter. Verify all rates, terms and tax rules with the bank or a qualified adviser before you book a deposit. Harshonomics is not a bank, a lender, or a SEBI-registered Investment Adviser.
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FD calculator guide
What is an FD Calculator?
An FD (Fixed Deposit) Calculator estimates the maturity value and total interest you earn on a fixed deposit. You enter the deposit amount, the annual interest rate, the tenure and the compounding frequency, and the calculator returns the maturity amount, the interest earned and sometimes the effective annual yield.
Fixed deposits are one of the most predictable savings products in India. The rate is locked in at the time of booking, and the maturity value is known in advance. An FD calculator removes the guesswork from planning: you can see exactly how much a deposit will grow over one, three, five or ten years.
This page explains the formula banks use, how compounding frequency changes the result, how TDS and tax affect your in-hand return, what happens if you withdraw early, and how FD compares with other savings options. Use the calculator above to run your own numbers.
What this calculator shows you
- Maturity value — the total amount you receive at the end of the tenure.
- Total interest earned — the difference between the maturity value and the principal.
- Principal — the amount you deposited.
- Effective annual yield — the actual annual return after taking compounding into account.
- Year-wise growth — how the balance rises each year when interest is reinvested.
- Senior citizen rate — many calculators let you toggle the extra 0.50% rate offered to depositors aged 60 and above.
Tip: A 0.25% difference in FD rate may look small, but on a ₹10 lakh deposit over five years it is worth roughly ₹15,000. Always compare rates across banks and tenures before booking. Small finance banks often offer higher rates than large private or public sector banks.
How to use the FD calculator
- Enter the deposit amount — the lump sum you plan to put into the FD.
- Enter the annual interest rate. Check whether the rate is for the general public or for senior citizens.
- Enter the tenure in years, months or days. Most banks accept FDs from 7 days to 10 years.
- Choose the compounding frequency. Cumulative FDs usually compound quarterly; some banks compound monthly or half-yearly.
- Select the deposit type — cumulative (interest reinvested) or non-cumulative (interest paid out periodically).
- Read the maturity value and the total interest.
- Change the tenure by one or two years and see how the maturity value moves. A longer tenure usually gives a higher rate.
- If you are a senior citizen, toggle the senior citizen option to see the higher rate.
FD maturity formula
A = P × (1 + r/n)n×t
- A — maturity value
- P — principal (deposit amount)
- r — annual interest rate in decimal (for 7%, use 0.07)
- n — number of times interest is compounded per year (4 for quarterly)
- t — tenure in years
For quarterly compounding, which is the most common for cumulative FDs in India, the formula simplifies to:
A = P × (1 + r/400)4t
where r is the annual rate as a percentage (e.g., 7 for 7%) and 4t is the number of quarters.
Example: A ₹2,00,000 deposit at 7% for 3 years with quarterly compounding. A = 200000 × (1 + 7/400)12 = 200000 × (1.0175)12 ≈ ₹2,46,335. Total interest ≈ ₹46,335.[reference:0]
If the FD is non-cumulative and pays interest monthly or quarterly, the interest is not reinvested. The simple interest formula applies to each payout: Interest per period = P × r × period/12. The maturity value in a non-cumulative FD is just the principal, because the interest has already been paid out.
Cumulative vs non-cumulative FD
| Point | Cumulative FD | Non-cumulative FD |
|---|---|---|
| Interest payment | Reinvested and paid at maturity | Paid monthly, quarterly, half-yearly or yearly |
| Maturity value | Higher, because interest compounds | Equal to principal |
| Best for | Growing a lump sum; reinvesting idle money | Regular income needs; retirees |
| Effective yield | Higher than the headline rate | Close to the headline rate |
A cumulative FD at 7% compounded quarterly gives an effective annual yield of about 7.19%. A non-cumulative FD at the same rate gives exactly 7% if interest is paid yearly. The gap widens over longer tenures.
FD interest rates in India (October 2026)
FD rates vary widely by bank and tenure. Small finance banks generally offer the highest rates, followed by private banks, then public sector banks. Senior citizens usually get an extra 0.50% across tenures. The table below shows indicative rates for a few major banks. Check the bank’s website for the exact rate for your chosen tenure and deposit amount.[reference:1]
| Bank | Highest rate (general) |
|---|---|
| Suryoday Small Finance Bank | Up to 8.25% |
| Utkarsh Small Finance Bank | Up to 8.10% |
| Equitas Small Finance Bank | Up to 8.00% |
| Ujjivan Small Finance Bank | Up to 7.80% |
| Bandhan Bank | Up to 7.45% |
| IDFC FIRST Bank | Up to 7.10% |
| HDFC Bank | Up to 6.50% |
| ICICI Bank | Up to 6.50% |
| State Bank of India | Up to 6.45% |
| Bank of Baroda | Up to 6.75% |
Rates are indicative and change frequently. Senior citizens often get 0.50% more. Some banks offer higher rates for specific tenures, such as 444 days or 1–2 years. Always confirm the current rate on the bank’s website or branch.
Tax on FD interest
Interest earned on FD is fully taxable. It is added to your total income and taxed at your slab rate. Banks deduct TDS at 10% if the interest paid or credited in a financial year exceeds the threshold. If you have not submitted PAN, the TDS rate is 20%.[reference:2]
| Depositor type | TDS threshold (per financial year) |
|---|---|
| General citizens (below 60) | ₹50,000 |
| Senior citizens (60 and above) | ₹1,00,000 |
If your total income is below the taxable limit, you can submit Form 15G (below 60) or Form 15H (60 and above) to the bank to avoid TDS. The TDS is not an extra tax — it is an advance against your final liability. If TDS is more than your actual tax, you can claim a refund when you file your return. Use the Income Tax Calculator to estimate your slab and tax.[reference:3]
Senior citizens can also claim a deduction of up to ₹50,000 on interest income under Section 80TTB, which reduces the taxable portion.
Premature withdrawal
Fixed deposits can be withdrawn before maturity, but there is usually a penalty. The bank may reduce the interest rate to the rate applicable for the period the deposit actually ran, and then deduct a penalty of 0.50% to 1% from that rate. Some banks do not allow withdrawal in the first 3 months except in emergencies.[reference:4]
For example, if you booked a 3-year FD at 7% and withdraw after 1 year, the bank may apply the 1-year rate (say 6%) minus a 0.50% penalty, giving an effective rate of 5.50% for the year. If you had simply booked a 1-year FD, you would have earned 6%. The penalty cost is the difference.
Some deposits, like tax-saving FDs with a 5-year lock-in, cannot be withdrawn early at all. Read the terms before booking. If you need liquidity, consider a shorter tenure or a sweep-in FD that allows partial withdrawal without penalty.
Illustrative examples
Sample calculations. Actual rates and maturity values depend on the bank and tenure you choose.
| Principal | Rate | Tenure | Compounding | Approx. maturity | Approx. interest |
|---|---|---|---|---|---|
| ₹1,00,000 | 7.00% | 1 year | Quarterly | ≈ ₹1,07,186 | ≈ ₹7,186 |
| ₹1,00,000 | 7.00% | 5 years | Quarterly | ≈ ₹1,41,478 | ≈ ₹41,478 |
| ₹5,00,000 | 7.25% | 3 years | Quarterly | ≈ ₹6,21,000 | ≈ ₹1,21,000 |
| ₹10,00,000 | 8.00% | 2 years | Quarterly | ≈ ₹11,71,600 | ≈ ₹1,71,600 |
| ₹5,00,000 (senior) | 7.50% | 5 years | Quarterly | ≈ ₹7,24,000 | ≈ ₹2,24,000 |
The senior citizen example assumes an extra 0.50% over the general rate. The difference in maturity value compared with a general FD at 7% is roughly ₹15,000 over five years on a ₹5 lakh deposit.
How to read the result
- Maturity value — the amount you receive at the end of the tenure. This is before TDS if the bank deducts it at source.
- Total interest — the gain from the deposit. Compare it with the principal to see how much of the maturity value is your original money.
- Effective annual yield — the true annual return after compounding. Use this to compare FDs with different compounding frequencies.
- Year-wise growth — shows how compounding accelerates in later years. The interest in year 5 is higher than in year 1 because the base has grown.
- Post-tax maturity — subtract the tax on interest to get your in-hand amount. The calculator usually shows pre-tax figures.
FD vs RD vs PPF vs SIP
| Feature | FD | RD | PPF | SIP |
|---|---|---|---|---|
| Investment type | Lump sum | Monthly | Yearly | Monthly |
| Returns | Fixed, guaranteed | Fixed, guaranteed | Fixed, government-backed | Market-linked, not guaranteed |
| Tenure | 7 days to 10 years | 6 months to 10 years | 15 years | Flexible |
| Tax | Interest taxable | Interest taxable | EEE (exempt-exempt-exempt) | Taxed on withdrawal |
| Liquidity | Premature withdrawal with penalty | Premature closure allowed | Restricted; partial withdrawal after 7 years | High; redeem anytime |
| Best for | Parking idle funds for a fixed period | Building a corpus through monthly savings | Long-term tax-free saving | Long-term wealth creation |
FD and RD are for capital safety and predictable returns. PPF offers a government guarantee and tax-free returns but locks money for 15 years. SIP is for long-term growth but carries market risk. Most investors use a mix: emergency funds in FD or RD, retirement savings in PPF or SIP depending on risk appetite.
Common mistakes to avoid
- Not comparing rates across banks. The same tenure can fetch 6.45% at one bank and 8.25% at another. A 1.80% difference compounds significantly.
- Ignoring the compounding frequency. A quarterly compounded FD yields more than a yearly compounded one at the same headline rate.
- Forgetting tax on interest. FD interest is taxed at your slab rate. A 7% FD for someone in the 30% slab gives an effective post-tax return of about 4.90%.
- Booking a long tenure without checking liquidity needs. Premature withdrawal penalties can eat into returns.
- Keeping more than ₹5 lakh in a single bank. Deposit insurance covers up to ₹5 lakh per depositor per bank. Spread large deposits across banks.
- Not submitting Form 15G/15H when eligible. If your income is below the taxable limit, you can avoid TDS and the hassle of claiming a refund.
- Reinvesting maturity without comparing rates. Rates change. Check whether a better rate is available before renewing.
- Using FD for long-term goals without adjusting for inflation. A 7% FD in a 6% inflation environment gives a real return of about 1%. Use the Inflation Calculator to see the impact.
Frequently asked questions
What is the minimum amount for an FD?
Most banks accept FDs starting from ₹1,000, and some allow as little as ₹100. There is no upper limit, though very large deposits may need to be spread across banks to stay within the ₹5 lakh deposit insurance cover.
What is the minimum and maximum tenure for an FD?
Tenures range from 7 days to 10 years. Some banks offer special tenures like 444 days or 1,000 days with slightly higher rates. The rate usually increases with tenure, but not always — some banks offer their best rates for 1–2 year deposits.
How is FD interest calculated?
For cumulative FDs, interest is compounded quarterly using the formula A = P × (1 + r/400)4t. For non-cumulative FDs, simple interest is calculated and paid out periodically. Most banks round the maturity value to the nearest rupee.
Is FD interest taxable?
Yes. FD interest is added to your total income and taxed at your slab rate. Banks deduct TDS at 10% if interest exceeds ₹50,000 (₹1,00,000 for senior citizens) in a financial year. You can avoid TDS by submitting Form 15G or 15H if your income is below the taxable limit.
Can I withdraw my FD before maturity?
Yes, most FDs allow premature withdrawal, but a penalty applies. The bank may reduce the interest rate to the rate applicable for the actual period held, minus a penalty of 0.50% to 1%. Tax-saving FDs with a 5-year lock-in cannot be withdrawn early.
What is a senior citizen FD rate?
Banks typically offer 0.50% extra to depositors aged 60 and above. Some small finance banks offer up to 0.75% extra. The higher rate applies to both cumulative and non-cumulative FDs.
What is a tax-saving FD?
A tax-saving FD has a 5-year lock-in and qualifies for deduction under Section 80C up to ₹1,50,000. The interest is taxable. Premature withdrawal is not allowed. It is suitable only if you are in the old tax regime and need the 80C deduction.
Can I get a loan against my FD?
Yes. Most banks offer loans or overdrafts against FDs, usually up to 90% of the deposit value. The interest rate on the loan is typically 1–2% higher than the FD rate. This can be a better option than breaking the FD, especially if the remaining tenure is short.
Is FD safe?
Bank FDs are among the safest savings instruments in India. Deposits up to ₹5 lakh per depositor per bank are insured by the DICGC. For larger amounts, spread deposits across multiple banks. Corporate FDs carry higher credit risk and are not covered by deposit insurance.
How does FD compare with PPF?
FD offers flexibility and higher rates from small finance banks, but interest is taxable. PPF has a lower rate (currently 7.1%) and a 15-year lock-in, but returns are tax-free and government-backed. Use the PPF Calculator to compare.
Related calculators
Related guides
Checklist before booking an FD
- Rate compared across at least three banks for the same tenure
- Compounding frequency confirmed (quarterly is most common)
- Senior citizen rate checked if applicable
- Tax on interest estimated for your slab
- TDS threshold checked and Form 15G/15H submitted if eligible
- Premature withdrawal penalty and lock-in read in the terms
- Deposit spread across banks to stay within ₹5 lakh insurance cover
- Maturity instruction set (renew, credit to account, or reinvest)
- Nominee added to the FD
- Emergency fund kept separate from long-term FDs
Disclaimer: This FD calculator and the content on this page are for education and mathematical estimation only. They are not investment advice, a guarantee of returns, or a substitute for professional consultation. FD interest rates change frequently and vary by bank, tenure and deposit amount. Tax treatment depends on your income slab and the current provisions of the Income-tax Act. Premature withdrawal penalties and terms are set by the bank. Results depend entirely on the inputs you enter. Verify all rates, terms and tax rules with the bank or a qualified adviser before you book a deposit. Harshonomics is not a bank, a lender, or a SEBI-registered Investment Adviser.