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FD Calculator

Enter your FD principal, interest rate, and tenure to instantly see the maturity amount, total interest, TDS deduction at 10%, effective yield, and net interest after tax. Compare cumulative (growth) vs non-cumulative (income) FD side by side, view current rates across 15+ banks, and see year-wise growth.

FD Calculator

️ TDS is deducted at 10% if interest exceeds ₹40,000/year (₹50,000 for senior citizens). Submit Form 15G/15H if income is below taxable limit to avoid TDS.

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Maturity Amount

FD Interest Rates - Major Banks (2025)

Indicative rates for general public. Senior citizens get +0.25% to +0.75% extra. Rates subject to change - verify with bank before investing.

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Bank 1 Year 2 Years 3 Years 5 Years Senior (+)

Click any row to use that bank's 1-year rate in calculator. Data: indicative as of 2025.

Year-wise FD Growth

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Period Opening Balance Interest Earned TDS Deducted Closing Balance
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How FD Interest Is Calculated

Cumulative FD - Compound Interest Formula

M = P × (1 + r/n)^(n×t) Where: M = Maturity Amount P = Principal r = Annual interest rate (decimal) n = Compounding frequency per year (4 = quarterly, 12 = monthly, etc.) t = Tenure in years Example: ₹5,00,000 at 7.25% p.a., quarterly, 3 years M = 5,00,000 × (1 + 0.0725/4)^(4×3) M = 5,00,000 × (1.018125)^12 M = 5,00,000 × 1.2399 M ≈ ₹6,19,952

Non-Cumulative FD - Simple Interest on Payout

Periodic Interest = P × r × (1/n) Where n = payout frequency per year Monthly payout: P × r / 12 Quarterly payout: P × r / 4 Note: The principal is returned at maturity. Total interest = P × r × t (simple interest)

TDS on FD Interest

TDS Rate: 10% if PAN provided, 20% if not TDS Trigger: Regular: Interest exceeds ₹40,000/year per bank Senior Citizen: Interest exceeds ₹50,000/year To avoid TDS: Form 15G - for non-senior citizens with nil tax Form 15H - for senior citizens with nil tax Net interest after TDS = Gross Interest × (1 - TDS%) Your actual tax = Interest × Your slab rate Tax refund = Slab tax - TDS paid (if overpaid)

Effective Annual Yield (EAY)

EAY = (1 + r/n)^n - 1 Example: 7.25% p.a. compounded quarterly EAY = (1 + 0.0725/4)^4 - 1 EAY = (1.018125)^4 - 1 EAY = 1.07437 - 1 EAY = 7.437% The effective yield is higher than the nominal rate because of quarterly compounding of interest.

Frequently Asked Questions

Cumulative FD: interest is compounded (usually quarterly) and added to principal throughout the tenure - you receive the full maturity amount at the end. Best for wealth accumulation. Non-cumulative FD: interest is paid out periodically (monthly, quarterly, or half-yearly) and the original principal is returned at maturity. Best for regular income - retirees and senior citizens typically prefer this. Cumulative FD gives a higher effective return because the interest itself earns interest through compounding.
TDS is deducted at 10% (with PAN) or 20% (without PAN) when total FD interest from all accounts in one bank exceeds ₹40,000/year (₹50,000 for senior citizens). TDS is an advance tax deduction - not final tax. If your slab rate is 30%, you owe an additional 20% when filing ITR. If below the basic exemption limit, claim a TDS refund. Submit Form 15G (non-seniors) or Form 15H (seniors) at the start of each financial year to avoid TDS deduction if your total income is below the taxable threshold.
Form 15G is a self-declaration by non-senior citizens (below 60) stating their total income is below the basic exemption limit and they have no tax liability - the bank then does not deduct TDS on FD interest. Form 15H serves the same purpose for senior citizens (60+). Both must be submitted at the start of each financial year (April) to every bank where you hold FDs. Once submitted, the bank will not deduct TDS for that year. If you miss submitting, you can claim a refund when filing your ITR.
Yes - premature withdrawal is allowed at most banks, but with a penalty. Typically: a 0.5% to 1% reduction in the applicable interest rate for the period held. Some banks waive the penalty for closures after a minimum lock-in period (often 7 days). Tax-saving FDs (Section 80C, 5-year lock-in) cannot be broken prematurely under any normal circumstance. Flexi FDs (sweep-in accounts linked to savings) allow partial withdrawal without penalty. Always check the specific bank's premature withdrawal policy before opening.
Tax-saving FDs have a 5-year mandatory lock-in and qualify for Section 80C deduction up to ₹1.5 lakh per financial year - but only under the Old Tax Regime. The interest earned is fully taxable at your slab rate. Key restrictions: cannot be prematurely withdrawn, cannot be pledged as collateral, loan against tax-saving FD is not permitted. Rates are typically 6.5–7.5% depending on the bank - slightly lower than regular FDs of the same tenure. Only worthwhile if you're using the Old Tax Regime and have remaining 80C capacity.
Yes - FD interest is taxable under both Old and New Tax Regimes. It is classified as 'Income from Other Sources' and added to your total income, taxed at the applicable slab rate. The difference: under the New Regime you cannot claim an 80C deduction for tax-saving FDs. TDS is deducted by the bank regardless of which regime you choose. If you've opted for the New Regime, tax-saving FDs offer no benefit beyond the FD return itself - compare with regular FDs for better rates.
FD laddering splits your investment across FDs with staggered maturity dates. Example: ₹5 lakh into five ₹1L FDs for 1, 2, 3, 4, and 5 years. Benefits: (1) Liquidity - one FD matures each year without breaking anything prematurely. (2) Rate averaging - shorter FDs renew at current rates if rates rise; longer FDs are already locked in if rates fall. (3) No single-point risk. When each FD matures, reinvest for the longest term in your ladder (5 years) - this keeps the ladder rolling indefinitely with one maturity per year.
DICGC (Deposit Insurance and Credit Guarantee Corporation) insures all deposits - FDs, savings accounts, RDs, and current accounts - up to ₹5 lakh per depositor per bank. This ₹5 lakh limit covers both principal and accrued interest combined. If a bank is liquidated or merged, depositors receive up to ₹5 lakh. To protect more than ₹5 lakh, spread deposits across multiple banks. Cooperative bank deposits are also covered under DICGC since 2020. Payment is typically made within 90 days of a bank liquidation.

Key FD Facts (2025)

Min. FD amount₹1,000
Tax-saving FD lock-in5 years
80C deduction (FD)₹1.5L max
TDS trigger (general)₹40,000/yr
TDS trigger (senior)₹50,000/yr
TDS rate (with PAN)10%
TDS rate (no PAN)20%
DICGC insurance₹5L per bank

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FD Calculator - Fixed Deposit Returns, TDS, and How to Maximise Your FD Earnings

Fixed Deposits are the most trusted savings instrument in India - and for good reason. They offer guaranteed returns, DICGC deposit insurance up to ₹5 lakh, and rates that are currently well above inflation for most bank FDs. But not all FDs are created equal: the compounding frequency, cumulative vs non-cumulative choice, TDS handling, and the bank you choose all significantly affect what you actually take home.

Quick example - ₹5,00,000 at 7.5% for 3 years (quarterly compounding): Maturity amount: approximately ₹6,25,434. Total interest: ₹1,25,434. TDS deducted (10%): ₹12,543. Net interest after TDS: ₹1,12,891. Effective yield: 7.71% (higher than the nominal 7.5% due to quarterly compounding).

FD Maturity Formula - How the Calculation Works

For cumulative FDs with quarterly compounding (the most common type in India): M = P × (1 + r/4)^(4×t), where M = maturity amount, P = principal, r = annual interest rate (as decimal), t = tenure in years.

For simple interest FDs (some short-tenure and non-cumulative): Interest = P × r × t, and maturity = P + interest.

The key difference between nominal rate and effective yield: a 7.5% FD compounded quarterly has an effective annual yield of (1 + 0.075/4)⁴ − 1 = 7.71%. This means your money actually grows at 7.71% per year, not 7.5%. The effective yield is always higher than the nominal rate when compounding is more frequent than annually.

Cumulative vs Non-Cumulative FD - Which Is Right for You?

Cumulative FD - Wealth Building

  • Interest compounded quarterly and added to principal
  • Full maturity amount paid at end of tenure
  • Higher effective return due to compounding on interest
  • Best for: salaried individuals, wealth accumulation, long-term goals
  • TDS deducted annually when interest exceeds ₹40,000/year
  • ₹5L at 7.5% for 5 years maturity ~₹7,24,000

Non-Cumulative FD - Regular Income

  • Interest paid out periodically: monthly, quarterly, or half-yearly
  • Principal returned at maturity
  • Slightly lower effective return (interest not reinvested)
  • Best for: retirees, senior citizens, supplementary income
  • Monthly payout: ₹5L at 7.5% = ~₹3,125/month
  • Same rate but lower effective return than cumulative

TDS on FD Interest - What You Need to Know

TDS (Tax Deducted at Source) on FD interest is a common source of confusion. Here's how it works:

  • TDS trigger: When total FD interest across all accounts in one bank exceeds ₹40,000/year (₹50,000 for senior citizens aged 60+)
  • TDS rate: 10% if PAN is provided; 20% if PAN is not provided
  • TDS is not final tax: It is an advance deduction. If your income tax slab rate is 30%, you still owe an additional 20% when filing your ITR. If your total income is below the basic exemption limit, you can claim a TDS refund.
  • Form 15G/15H: Submit at the start of each financial year to avoid TDS if your total income is below the taxable threshold. Form 15G is for people below 60; Form 15H is for senior citizens. Must be submitted to every bank where you hold FDs.
  • Interest is fully taxable: FD interest is taxed as "Income from Other Sources" at your applicable slab rate under both Old and New Tax Regimes.

FD Laddering - A Simple Strategy for Better Liquidity and Returns

FD laddering splits a lump sum into multiple FDs with staggered maturities rather than putting everything into one FD. The benefits are significant:

  1. Liquidity: You don't lock up all your money in one long FD. One FD matures each year, giving you access to funds without breaking an FD prematurely.
  2. Rate risk management: If rates rise, shorter FDs renew at the new higher rates. If rates fall, you've already locked in higher rates on longer FDs.
  3. Example - ₹5 lakh ladder: ₹1L in 1-year FD, ₹1L in 2-year FD, ₹1L in 3-year FD, ₹1L in 4-year FD, ₹1L in 5-year FD. Each year, one FD matures - if rates are good, reinvest for another 5 years. If you need cash, use the maturing FD.

Senior Citizen FD Rates - The 0.5% Advantage

Almost all banks offer senior citizens an additional 0.25–0.75% interest over standard rates - typically 0.50%. On ₹10 lakh invested, an extra 0.5% means ₹5,000 more interest per year. Over a 5-year FD, this can add ₹25,000–30,000 to the corpus depending on compounding. Senior citizens also benefit from the higher TDS exemption threshold of ₹50,000/year (vs ₹40,000 for others), and can use Form 15H to avoid TDS deduction entirely if their total income is below the taxable limit.

How this calculator works, and where the numbers come from

The FD Calculator applies the standard formula for this calculation to the values you enter and updates the result as you type. The calculation itself happens in your browser, and the page explains the method so you can check any result by hand.

Please note: Projections assume the inputs you enter stay constant; real returns vary. Results are estimates, not financial advice.

Sources and further reading

Learn more

Read our guide: Compound Interest and the Rule of 72, Checked Against the Math

Last reviewed: by the CalcQube Editorial Team. See our editorial policy for how we build and check calculators, or report an error.