Fixed Deposit Calculator
Calculate maturity amount and interest earnings on bank FDs with various compounding options
FD Details
About Fixed Deposits
Key Features
- • Guaranteed returns with no market risk
- • Tenure ranges from 7 days to 10 years
- • Senior citizens get 0.5% extra interest
- • Premature withdrawal with penalty allowed
Tax Implications
- • Interest taxable as per your income slab
- • TDS deducted if interest exceeds ₹40,000
- • Tax-saving FDs available under Section 80C
- • 5-year lock-in for tax-saving FDs
Frequently Asked Questions
What is FD and how does it work?
Fixed Deposit (FD) is a safe investment where you deposit a lump sum with a bank/post office for a fixed period at a predetermined interest rate. Banks cannot change the rate once booked. Interest is taxable as per your income tax slab. Principal is guaranteed and insured up to ₹5 lakhs per bank by DICGC.
What is the current FD interest rate in 2026?
FD rates vary by bank, tenure, and amount. As of January 2026, typical rates: Senior citizens: 7-8% p.a., General public: 6-7% p.a. for 1-3 year tenure. Small finance banks offer higher rates (8-9%). Rates are revised frequently based on RBI repo rate changes. Compare across banks before investing.
Can I break my FD prematurely?
Yes, most FDs allow premature withdrawal with penalty. Typically, 0.5-1% is deducted from the interest rate applicable for the actual period held. If withdrawn in first 7 days (or specified minimum period), no interest may be paid. Lock-in FDs (like tax-saver FDs) cannot be broken before 5 years.
What is the difference between cumulative and non-cumulative FD?
Cumulative FD: Interest is reinvested and paid at maturity. Benefit: Compounding increases returns. Non-cumulative FD: Interest is paid out monthly/quarterly/annually. Benefit: Regular income stream. Cumulative gives higher maturity amount, non-cumulative suits those needing periodic income like retirees.
Is FD interest taxable and what is TDS?
Yes, FD interest is fully taxable as per your income tax slab. Banks deduct TDS (Tax Deducted at Source) @10% if annual interest exceeds ₹40,000 (₹50,000 for senior citizens). If PAN not provided, TDS is 20%. You can submit Form 15G/15H if total income is below taxable limit to avoid TDS.
Should I invest in FD or mutual funds?
FD: Safe, guaranteed returns, capital protection, but lower returns (6-7%) and taxable interest. Mutual Funds: Higher potential returns (10-12% historically in equity), but market-linked risk, volatility. For emergency funds and short-term goals (1-3 years): FD. For long-term wealth creation (5+ years): Equity mutual funds. Balanced approach: Have both.
How to Use This Calculator
- 1
Enter the principal amount you want to invest in the fixed deposit. Minimum varies by bank (typically ₹1,000-₹10,000).
- 2
Input annual interest rate offered by your bank. Check current rates - typically 6-8% for 1-3 year FDs as of 2026.
- 3
Select the tenure (investment period) in months or years. Longer tenures generally offer higher interest rates.
- 4
Choose FD type: Cumulative (interest reinvested, paid at maturity) or Non-cumulative (interest paid periodically). View maturity amount.
Key Terms & Definitions
- Fixed Deposit (FD)
- A safe investment instrument offered by banks where you deposit money for a fixed period at a predetermined interest rate.
- Maturity Amount
- Total amount you receive at end of FD tenure, including principal and accumulated interest. Guaranteed by the bank.
- Cumulative FD
- Interest is compounded and reinvested, paid along with principal at maturity. Gives higher returns due to compounding effect.
- Non-Cumulative FD
- Interest is paid out at regular intervals (monthly/quarterly/annually). Suitable for those needing regular income like retirees.
- DICGC Insurance
- Deposit Insurance and Credit Guarantee Corporation insures bank deposits up to ₹5 lakhs per depositor per bank, protecting your capital.
- Premature Withdrawal Penalty
- Penalty charged (typically 0.5-1% lower interest rate) if you break FD before maturity. Reduces your effective interest earnings.
Formulas & Calculations
Simple Interest FD (Non-Cumulative)
Used for non-cumulative FDs where interest is paid out. Example: ₹1,00,000 at 7% for 3 years = ₹1,00,000 + ₹21,000 = ₹1,21,000.
Compound Interest FD (Cumulative)
Example: ₹1,00,000 at 7% compounded quarterly for 3 years = ₹1,00,000 × (1 + 0.07/4)^12 = ₹1,23,140 (better than simple interest).
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