FD Calculator — Guaranteed Returns, Calculated Instantly
Calculate your Fixed Deposit maturity with quarterly compounding. Compare banks, see year-by-year growth, and plan your FD renewal strategy.
| Year | Opening Value | Interest Earned | Closing Value | Cumul. Interest |
|---|---|---|---|---|
| Calculate above to see FD growth schedule | ||||
How is FD interest calculated in India?
Most Indian banks compound FD interest quarterly. Formula: A = P x (1 + r/4)^(4n), where P is principal, r is annual rate (decimal), n is years. For example, Rs 1L at 7% for 5 years = Rs 1,41,478 at maturity. This calculator uses quarterly compounding.
What is the current FD interest rate in India?
Major bank FD rates (5-year): SBI 7.0%, HDFC Bank 7.4%, ICICI Bank 7.25%, Axis Bank 7.25%. Small Finance Banks offer 8-9.5%. Senior citizens typically get 0.25-0.5% extra. Rates are revised regularly based on RBI policy decisions.
Is FD interest taxable?
Yes. FD interest is added to your income and taxed at your slab rate. If interest exceeds Rs 40,000 per year (Rs 50,000 for senior citizens), the bank deducts 10% TDS. You must declare all FD interest in your ITR. This is a key disadvantage vs PPF (which is tax-free) for high earners.
FD vs PPF: which is better?
For investors in the 30% tax bracket: PPF at 7.1% tax-free is equivalent to a pre-tax FD of ~10.1%. PPF wins clearly for regular taxpayers. However, FD has advantages: no lock-in period (can be broken), higher liquidity, no deposit limits, and seniors get higher rates. FD is better for short-term goals; PPF for long-term tax-free wealth building.
What happens if I break FD prematurely?
Most banks allow premature FD closure with a penalty of 0.5%-1% reduction in the applicable rate. For example, if you break a 5-year FD after 2 years, you get the 2-year rate minus the penalty. Some special FDs (tax-saver 5-year FDs) cannot be broken before 5 years.