Calculate your fixed deposit maturity amount, total interest earned, and TDS deduction for any Indian bank. Supports all compounding frequencies and senior citizen rates — instant, accurate results.
FD Details
₹
Amount you are depositing
% p.a.
Rate offered by your bank
Years and months (e.g. 1 year 6 months)
How often interest is compounded
FD Type & Tax
Cumulative grows more; Non-cumulative gives regular income
Senior citizens get +0.25%–0.75% extra rate
TDS triggers if annual FD interest > ₹40,000 (₹50,000 for seniors)
For net after-tax interest calculation
Quick Presets
How to Use This Calculator
1
Enter your deposit amount and interest rate
Type the amount you plan to deposit and the annual interest rate your bank is offering. Check your bank's website for the latest rates — they change frequently.
2
Set the tenure in years and months
Enter the FD period in years and remaining months. For example, for an 18-month FD enter 1 year and 6 months. Most Indian banks offer tenures from 7 days to 10 years.
3
Choose compounding frequency and FD type
Most Indian banks compound quarterly. Select cumulative if you want all interest at maturity, or non-cumulative if you need periodic interest payouts for regular income.
4
Select investor type and TDS option
Senior citizens (60+) get a higher rate — usually +0.25% to 0.75%. Choose your TDS situation: PAN submitted (10%), no PAN (20%), or Form 15G/15H submitted (0% TDS).
💡Use the quick preset buttons to instantly load common FD scenarios — ₹1 lakh for 1 year, 5-year tax-saver FD, or senior citizen rates — then adjust individual fields as needed.
🏦 FD Rates — Major Banks (2026)
SBI (1–2 yr)6.80% – 7.00%
HDFC Bank (1–2 yr)6.60% – 7.25%
ICICI Bank (1–2 yr)6.70% – 7.20%
Axis Bank (1–2 yr)6.70% – 7.20%
Kotak Mahindra (1–2 yr)7.10% – 7.40%
Post Office (5 yr)7.50%
Small Finance Banks8.50% – 9.50%
Senior citizens get +0.25%–0.75% above these rates. Rates are indicative for May 2026 — always verify with your bank before booking.
👴 Senior Citizen Extra Rates
SBI+0.50%
HDFC Bank+0.25%
ICICI Bank+0.25%
Axis Bank+0.25%
Post OfficeN/A
Small Finance Banks+0.25%–0.75%
TDS exemption for senior citizens: ₹50,000/year (vs ₹40,000 for others). Submit Form 15H to avoid TDS if total income is below taxable limit.
📈 ₹1 Lakh FD Growth at 7% (Quarterly)
6 Months₹1,03,553
Interest: ₹3,553
1 Year₹1,07,186
Interest: ₹7,186
2 Years₹1,14,888
Interest: ₹14,888
3 Years₹1,23,144
Interest: ₹23,144
5 Years₹1,41,478
Interest: ₹41,478
10 Years₹2,00,160
Interest: ₹1,00,160 (100% gain)
Cumulative FD, quarterly compounding. Actual amounts vary with exact compounding conventions of your bank.
🧾 TDS on FD — Quick Reference
TDS threshold (general)₹40,000/yr
TDS threshold (senior)₹50,000/yr
TDS rate (PAN submitted)10%
TDS rate (no PAN)20%
Avoid TDS (below 60)Form 15G
Avoid TDS (60+)Form 15H
TDS is per bank per year — if you have FDs in multiple banks, TDS applies separately at each. TDS is not final tax — it is credit against your ITR liability.
Why FDs Remain India's Most Trusted Investment in 2026
Fixed deposits are the backbone of Indian household savings — over ₹200 lakh crore sits in bank FDs across the country, far exceeding all other investment categories combined. The reason is simple: guaranteed returns, capital protection, and no market risk. In a country where a large portion of the population is first-generation investors unfamiliar with equity markets, the FD offers something priceless — certainty.
In 2026, with repo-linked FD rates stabilising between 6.5% and 9.5% depending on the bank and tenure, FDs are more competitive than they have been in a decade. Senior citizens in particular benefit from rates that comfortably beat inflation after the additional 0.25%–0.75% premium. And with the rise of small finance banks offering rates above 9%, FDs have regained relevance even for investors who previously moved entirely to equity mutual funds.
🔒
Capital Guaranteed
Principal is fully protected. DICGC insures deposits up to ₹5 lakh per depositor per bank.
📅
Flexible Tenures
7 days to 10 years — book for any period that matches your financial goal.
👴
Senior Citizen Bonus
Extra 0.25%–0.75% interest rate and higher TDS threshold of ₹50,000/year.
🧾
Tax Saver FD
5-year FD gives 80C deduction up to ₹1.5 lakh — but interest is fully taxable.
How FD Interest is Calculated — Formula and Worked Example
FD interest in India is calculated using the compound interest formula. Unlike simple interest (where interest is only earned on the principal), compound interest calculates interest on the principal plus all accumulated interest — making the FD grow faster over time, especially for longer tenures.
Compound Interest Formula (used by all Indian banks)
A = P × (1 + r/n)n×t
Where: P = Principal · r = Annual rate (decimal) · n = Compounding frequency per year · t = Tenure in years Total Interest = A − P | Maturity Amount = A
Compounding Frequency: What It Means in Practice
Most Indian banks compound interest quarterly (4 times per year). This means every 3 months, the interest earned is added to your principal and the next quarter's interest is calculated on this higher balance. Monthly compounding gives slightly higher returns; annual compounding gives slightly lower. The difference on ₹1 lakh at 7% for 1 year is small (~₹30–50), but over 10 years it becomes significant.
Example: ₹5,00,000 FD at 7.25% for 2 years — Quarterly Compounding
P = ₹5,00,000 · r = 0.0725 · n = 4 (quarterly) · t = 2 years
A = 5,00,000 × (1 + 0.0725/4)^(4×2)
A = 5,00,000 × (1 + 0.018125)^8
A = 5,00,000 × (1.018125)^8 = 5,00,000 × 1.15548
Maturity Amount = ₹5,77,740
Total Interest = ₹5,77,740 − ₹5,00,000 = ₹77,740
TDS at 10% (PAN submitted): ₹7,774 deducted. Take-home after TDS: ₹5,69,966. Net after 20% tax: additional ₹7,774 to pay in ITR (since TDS credits against slab tax).
💡The Rule of 72 gives you a quick estimate of FD doubling time: divide 72 by the interest rate. At 7%, your money doubles in approximately 72 ÷ 7 = ~10.3 years. At 9%, it doubles in ~8 years. Use this as a quick mental check before opening any FD.
TDS on FD Interest — When It Applies and How to Avoid It
TDS (Tax Deducted at Source) on FD interest is one of the most misunderstood aspects of fixed deposits in India. Many investors are surprised to find their bank has deducted tax on interest — and others pay excess tax because they don't understand how TDS and their actual tax liability interact.
When does TDS trigger on FD?
A bank deducts TDS when the total FD interest credited or paid across all your FDs in that bank in a financial year exceeds the threshold — ₹40,000 for regular customers and ₹50,000 for senior citizens. This is per bank per year — not per FD. If you have three FDs in SBI each earning ₹15,000 interest per year, total interest is ₹45,000 and TDS is deducted at 10% on the full ₹45,000.
Situation
TDS Rate
On Amount
Action Needed
PAN submitted, interest > ₹40,000
10%
Total interest
File ITR, claim TDS credit
No PAN submitted
20%
Total interest
Submit PAN immediately
Form 15G submitted (below 60, low income)
0%
—
Submit 15G each April
Form 15H submitted (senior citizen)
0%
—
Submit 15H each April
Interest ≤ ₹40,000 (₹50,000 seniors)
0%
—
No action needed
Important: TDS is not the final tax on your FD interest. It is just an advance deduction — like advance payment. Your actual tax liability depends on your income slab. If you are in the 30% slab, you owe an additional 20% over the 10% already deducted via TDS. If you are in the nil slab, you can claim a full refund of TDS by filing your ITR.
How to submit Form 15G / 15H
Submit a physical or online Form 15G (below 60 years) or Form 15H (senior citizens) to your bank at the beginning of each financial year (April). This declaration states your total income will be below the taxable threshold. Banks accept these forms via internet banking, the bank's app, or at the branch. Failing to submit by April may result in TDS being deducted for the full year even if you qualify for exemption.
⚠️Submitting Form 15G/15H when your income actually exceeds the taxable limit is a punishable offence under Section 277 of the Income Tax Act. Only submit if your total income genuinely falls below the basic exemption limit.
Cumulative vs Non-Cumulative FD — Which to Choose
This is the most important decision when booking an FD, and it depends entirely on whether you need regular income or are investing for growth. Neither is universally better — the right choice depends on your life stage and financial needs.
Factor
Cumulative FD
Non-Cumulative FD
How interest works
Compounded and reinvested — paid at maturity with principal
Paid out monthly, quarterly, half-yearly, or annually
Maturity amount
Higher — compounding effect maximised
Lower — no compounding on paid-out interest
Regular income
None during tenure
Regular cash flow throughout
Best for
Wealth building, goals with fixed timeline
Retirees, those needing monthly income supplement
TDS timing
TDS deducted at maturity or annually (bank-dependent)
✅For most investors below 60 who don't need immediate income, cumulative FDs are the better choice — the compounding effect over 2–5 years meaningfully increases returns. For retirees who need a monthly income supplement, non-cumulative quarterly or monthly payout FDs work well alongside pension income.
Senior Citizen FD Benefits — Extra Rates and Higher TDS Threshold
Banks in India offer preferential FD treatment to senior citizens (60 years and above) as a policy across the board. These benefits can meaningfully improve post-tax FD returns for retirees who rely on FD interest as income.
Extra interest rate
Almost all Indian banks offer senior citizens an additional 0.25% to 0.75% above the regular FD rate. On a ₹10 lakh FD at 7% regular rate versus 7.5% senior citizen rate over 5 years, the difference is approximately ₹34,000 in additional maturity value — entirely from the 0.5% premium. At some small finance banks, senior citizen rates reach 9.5%–10%, making them extremely competitive even against equity alternatives for retirees with low risk tolerance.
Higher TDS exemption threshold
Senior citizens get a TDS exemption threshold of ₹50,000 per year (vs ₹40,000 for others). This means a senior citizen earning up to ₹50,000 in FD interest from a single bank in a year faces no TDS deduction — vs the ₹40,000 limit for regular customers. For those with income below the taxable limit, Form 15H submission avoids TDS entirely.
Benefit
General (below 60)
Senior Citizen (60+)
Super Senior (80+)
Extra interest rate
—
+0.25% to +0.75%
+0.25% to +0.75% + additional at some banks
TDS threshold
₹40,000/year
₹50,000/year
₹50,000/year
TDS waiver form
Form 15G
Form 15H
Form 15H
Tax exemption limit (old regime)
₹2,50,000
₹3,00,000
₹5,00,000
5 Common FD Mistakes That Cost Indians Money
Mistake 1 — Not comparing rates across banks before booking
✗ Wrong: Booking FD at your salary account bank without checking alternatives.
✓ Right: Compare SBI, HDFC, ICICI, small finance banks, and Post Office before booking.
The rate difference between the lowest-paying major bank and the highest-paying small finance bank can be 1.5%–2.5%. On ₹10 lakh for 5 years, this translates to ₹80,000–₹1,50,000 in additional interest — just from choosing a better bank. Small finance banks like AU Small Finance, Jana Small Finance, and Unity Small Finance Bank are RBI-regulated and DICGC-insured up to ₹5 lakh, making them safe for most deposit sizes.
Mistake 2 — Forgetting to submit Form 15G/15H and paying unnecessary TDS
✗ Wrong: Not submitting Form 15G/15H at the start of the financial year and losing 10% to TDS.
✓ Right: Submit the form every April at all banks where you hold FDs, if you qualify.
If your total income is below the taxable threshold, you are fully entitled to receive FD interest without TDS. But the bank doesn't know this automatically — you must tell them via Form 15G or 15H every year. Missing the April deadline means TDS is deducted throughout the year and you must wait until ITR filing to claim a refund — a 6–9 month delay in getting your own money back.
Mistake 3 — Treating tax-saver FD as tax-free
✗ Wrong: "I invested ₹1.5 lakh in a tax-saver FD, so the interest is also tax-free."
✓ Right: Only the principal invested in a 5-year tax-saver FD qualifies for 80C deduction — the interest is fully taxable each year.
Tax-saver FDs (5-year lock-in) give you a Section 80C deduction on the invested amount — saving ₹15,000–₹45,000 in tax depending on your slab. But the interest earned each year is added to your income and taxed at your slab rate. If you are in the 30% slab, you pay 30% tax on all FD interest — making the effective post-tax return significantly lower than the stated rate. ELSS mutual funds (also 80C) have a 3-year lock-in and historically deliver higher post-tax returns for investors who can tolerate short-term volatility.
Mistake 4 — Breaking an FD early and paying penalty without exploring alternatives
✗ Wrong: Breaking a ₹5 lakh FD early for an emergency and paying premature withdrawal penalty.
✓ Right: Take an overdraft against your FD (at 1%–2% above FD rate) or book a new smaller FD for the specific amount needed.
Most Indian banks offer overdraft or loan against FD at just 1%–2% above your FD rate. If your FD earns 7%, the loan costs you 8%–9% — often cheaper than a personal loan at 12%–24%. And you keep earning interest on the full FD amount. Breaking the FD incurs a 0.5%–1% premature withdrawal penalty and you lose the higher rate for the remaining tenure — a double hit that an OD facility avoids entirely.
Mistake 5 — Keeping all deposits in one bank beyond ₹5 lakh DICGC insurance limit
✗ Wrong: Keeping ₹20 lakh in a single FD at one bank for a higher rate.
✓ Right: Spread deposits above ₹5 lakh across multiple banks to stay within DICGC insurance per bank.
DICGC (Deposit Insurance and Credit Guarantee Corporation) insures deposits up to ₹5 lakh per depositor per bank — including all account types and FDs combined. Amounts above ₹5 lakh are uninsured. If a bank fails (rare but it has happened with small co-operative banks and some small finance banks), uninsured deposits may be at risk. For large sums, spread across 2–3 banks with deposits kept below ₹5 lakh each — or use government-backed instruments like NSC, Post Office TD, or RBI Bonds for the remainder.
📊 Calculate Your FD Returns — Free & Instant
Use the calculator above to compare FD returns at different banks, tenures, and rates — including TDS and post-tax interest. No signup, no limits.
FD interest is calculated using the compound interest formula: A = P × (1 + r/n)^(n×t), where P is principal, r is annual interest rate as a decimal, n is compounding frequency per year, and t is tenure in years. Most Indian banks compound quarterly (n=4). The total interest earned is A minus P. For cumulative FDs, interest is reinvested throughout the tenure and paid at maturity. For non-cumulative FDs, interest is paid out at the chosen frequency.
Banks deduct TDS at 10% on FD interest when total interest credited in your name at that bank exceeds ₹40,000 in a financial year (₹50,000 for senior citizens). If you haven't submitted your PAN to the bank, TDS is deducted at 20%. TDS is not the final tax — it is an advance deduction credited against your total tax liability when you file your ITR. If your income is below the taxable limit, you can claim a full TDS refund via ITR. To avoid TDS altogether, submit Form 15G (below 60 years) or Form 15H (senior citizens) to your bank at the start of each financial year.
Small finance banks typically offer the highest FD rates in India in 2026 — often 8.5% to 9.5% for general customers and up to 10% for senior citizens on select tenures. Major banks like SBI offer around 6.8%–7.0% and HDFC Bank around 6.6%–7.25% for 1–2 year tenures. Post Office Time Deposit offers 7.5% for a 5-year deposit. Always compare across banks before booking since rates change frequently — and check if the small finance bank you choose is DICGC-insured (all scheduled commercial banks are).
In a cumulative FD, interest is compounded throughout the tenure and reinvested — you receive the total maturity amount (principal plus all interest) only at the end. This maximises growth due to compounding. In a non-cumulative FD, interest is paid out at regular intervals — monthly, quarterly, half-yearly, or annually — and the principal is returned at maturity. Cumulative FDs give higher total returns. Non-cumulative FDs are preferred by retirees and others who need regular income. The interest payout in non-cumulative FDs cannot be reinvested at the same rate automatically, which reduces long-term returns.
Yes — almost all Indian banks offer senior citizens (aged 60 and above) an additional 0.25% to 0.75% interest rate above the regular FD rate. SBI offers +0.50%, HDFC and ICICI offer +0.25%, and some small finance banks offer +0.50% to +0.75%. Senior citizens also get a higher TDS exemption threshold of ₹50,000 per year versus ₹40,000 for regular customers. Super senior citizens (80+) get an additional premium of 0.10%–0.25% at some banks. These rates apply on FDs up to ₹2 crore in most banks.
If your total income for the financial year falls below the basic tax exemption limit, submit Form 15G (for individuals below 60 years) or Form 15H (for senior citizens) to your bank at the start of each financial year — ideally in April. This declaration tells the bank not to deduct TDS on your FD interest. You must submit this form at every bank where you hold FDs. If your income exceeds the taxable limit, you cannot submit Form 15G/15H — doing so is a punishable offence under the Income Tax Act. In this case, TDS will be deducted and credited against your ITR tax liability.
Yes — FD interest is fully taxable under 'Income from Other Sources' in India and must be declared in your ITR. For cumulative FDs, interest accrues annually and is taxable each year even if you haven't physically received it — not just the year of maturity. The interest is added to your total income and taxed at your applicable slab rate (5%, 20%, or 30% plus cess). TDS deducted by the bank is credited against this liability. There is no special tax treatment for FD interest — unlike long-term capital gains on equity which are taxed at lower rates.
Bank FDs are among the safest investments in India. DICGC (Deposit Insurance and Credit Guarantee Corporation), a subsidiary of the RBI, insures all bank deposits — savings accounts, current accounts, FDs, recurring deposits — up to ₹5 lakh per depositor per bank. This limit was increased from ₹1 lakh to ₹5 lakh in 2020. If a bank fails, you are guaranteed to receive up to ₹5 lakh. For amounts above ₹5 lakh, consider spreading across multiple banks or using government-backed instruments like NSC, Post Office Time Deposit, or RBI Floating Rate Savings Bonds.
About ToolLoom — We build free tools for Indian students, professionals and creators. All calculators are verified against RBI, Income Tax Department, and DICGC guidelines. FD rates verified for May 2026 — always confirm with your bank before booking. Found an error? Email contact@toolloom.in
📅 May 2026 · Written by the ToolLoom Team · Reviewed for accuracy May 2026