🏦 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.
🏦 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.
| 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
Run the calculator first to see year-by-year growth.
| Period | Opening Balance | Interest Earned | TDS Deducted | Closing Balance |
|---|---|---|---|---|
| Run the calculator first. | ||||
📐 How FD Interest Is Calculated
Cumulative FD - Compound Interest Formula
Non-Cumulative FD - Simple Interest on Payout
TDS on FD Interest
Effective Annual Yield (EAY)
❓ Frequently Asked Questions
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.
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:
- 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.
- 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.
- 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.