What Is an FD Calculator?
A Fixed Deposit (FD) calculator helps you estimate the maturity value and interest earned on your bank or corporate fixed deposit. Simply enter the deposit amount, interest rate, tenure, and compounding frequency to see exactly how much your FD will be worth at maturity.
FD Interest Calculation Formula
For simple interest FDs: Maturity = P + (P x r x t). For compound interest FDs (most common): Maturity = P x (1 + r/n)^(n x t), where P is the principal, r is the annual interest rate, n is the compounding frequency per year (usually 4 for quarterly), and t is the tenure in years.
For example, an FD of Rs 5,00,000 at 7.25% for 3 years with quarterly compounding yields a maturity value of approximately Rs 6,19,261, earning Rs 1,19,261 in interest.
Latest FD Interest Rates in India (2026)
| Bank | Regular Rate (1-3yr) | Senior Citizen Rate | Special Tenure |
|---|---|---|---|
| SBI | 6.50-7.10% | 7.00-7.60% | 7.10% (444 days) |
| HDFC Bank | 6.60-7.25% | 7.10-7.75% | 7.35% (55 months) |
| ICICI Bank | 6.50-7.20% | 7.00-7.70% | 7.25% (505 days) |
| Axis Bank | 6.50-7.20% | 7.00-7.75% | 7.20% (30 months) |
| PNB | 6.50-7.05% | 7.00-7.55% | 7.25% (400 days) |
| Kotak Bank | 6.50-7.40% | 7.00-7.90% | 7.40% (390 days) |
Tax on Fixed Deposit Interest
FD interest is fully taxable as per your income tax slab. If your total interest from all FDs in a bank exceeds Rs 40,000 per year (Rs 50,000 for senior citizens), the bank deducts TDS at 10%. If you do not provide your PAN, TDS is deducted at 20%.
To reduce the tax impact on FD returns, consider investing in tax-saver FDs (5-year lock-in) which qualify for Section 80C deduction up to Rs 1.5 lakh. However, the interest earned is still taxable. For completely tax-free fixed-income alternatives, consider PPF or SSY.
FD vs Debt Mutual Funds
While FDs offer guaranteed returns, debt mutual funds can potentially offer better post-tax returns for investors in higher tax brackets. With the 2023 indexation benefit removal for debt funds, the comparison has shifted. FDs now have a slight edge for shorter tenures (1-3 years), while debt funds can still outperform for shorter holding periods due to lower expense ratios and market-linked returns.
Tips for Maximising FD Returns
FD Laddering: Instead of putting all money in one FD, split it into multiple FDs with different tenures (1yr, 2yr, 3yr, 5yr). This gives you periodic liquidity while earning higher rates on longer tenures.
Check Small Finance Banks: Banks like AU Small Finance, Equitas, and Ujjivan offer 0.5-1% higher FD rates than large banks, and deposits up to Rs 5 lakh are insured by DICGC just like any other bank.
Cumulative vs Non-Cumulative: Choose cumulative FDs (interest reinvested) for wealth building and non-cumulative FDs (monthly/quarterly interest payout) only if you need regular income.
Frequently Asked Questions
Is FD interest rate fixed for the entire tenure? Yes, once you book an FD, the interest rate is locked for the full tenure regardless of any future rate changes by the bank. This is why it is advantageous to book FDs when rates are high.
What is the penalty for premature FD withdrawal? Most banks charge a penalty of 0.5-1% on the applicable rate for premature withdrawal. Some banks like SBI have specific penalty structures based on the remaining tenure.
Are corporate FDs safe? Corporate FDs offer higher rates but carry credit risk. Stick to AAA-rated corporate FDs from companies like HDFC, Bajaj Finance, or Mahindra Finance. Unlike bank FDs, corporate FDs are not covered by DICGC insurance.