FD Calculator
Calculate Fixed Deposit maturity amount and interest earned with live inputs
tuneAdjust Inputs
Maturity Amount
₹1,41,478
≈ 1.41 Lakh
Interest Earned
₹41,478
Growth: 41.5%
Principal
₹1,00,000
70.7% of maturity
Est. Returns
₹41,478
29.3% of maturity
Duration
5 Years
Quarterly compounding
Interest Rate
7% p.a.
Annual rate
Interest
29.3%
Principal
₹1,00,000
Interest
₹41,478
functions FD Formula
A = P × (1 + r/4)^(4×t)
P = Principal | r = Annual rate/100 | t = Years (quarterly compounding)
Types of Fixed Deposits
Choose the FD variant that matches your goal, tax situation, and liquidity needs
🏦
Regular FD
Standard FD available at all banks. Tenure from 7 days to 10 years. Insured by DICGC up to ₹5 lakh per bank.
Most Common
👴
Senior Citizen FD
Extra 0.25–0.75% interest for investors aged 60+. Same DICGC protection. Some banks offer 0.5% additional for super senior citizens (80+).
Higher Rate
💰
Tax-Saving FD
5-year lock-in. Deposit up to ₹1.5L qualifies for Section 80C deduction. Cannot be withdrawn prematurely. Interest is taxable.
80C Benefit
🔄
Flexi/Sweep FD
Linked to your savings account. Excess balance auto-converts to FD. You can withdraw any amount anytime — liquid like savings but earns FD rates.
Most Flexible
🏢
Corporate FD
Offered by NBFCs and companies. Rates 0.5–2% higher than banks. NOT covered by DICGC — higher risk. Check credit rating (AA or above recommended).
Higher Risk
🌍
NRE / NRO FD
NRE FD: Tax-free in India, fully repatriable. NRO FD: Indian income parked, subject to TDS. Both available to Non-Resident Indians.
For NRIs
Tax on FD Interest
FD interest is taxable every year — even if you don't withdraw. Here's how it works.
TDS on Interest
Auto-deducted
- TDS @ 10% if interest > ₹40,000/year (₹50,000 for senior citizens)
- TDS @ 20% if PAN not provided
- Submit Form 15G (below 60) or 15H (60+) if income is below taxable limit
Taxed at Slab Rate
Income Tax
- FD interest is added to your total income and taxed at your slab rate (0–30%)
- Interest accrues every year (not only on maturity) — declare annually in ITR
- Even if bank hasn't deducted TDS, you must pay advance tax if liability > ₹10,000
Tax-Saving FD (80C)
Deduction
- Deposit up to ₹1.5L/year in 5-year tax-saving FD to claim 80C deduction
- Only the principal investment is deductible — interest earned is still taxable
- Cannot be pledged, transferred, or closed prematurely
💡 FD Laddering Tip: Split ₹5L into five ₹1L FDs maturing in years 1–5. Each year, renew the maturing FD at the best current rate. This keeps money accessible and avoids locking all funds at one rate — especially useful when rates are expected to rise.
8 Mistakes to Avoid with Fixed Deposits
These errors reduce your FD returns or create unnecessary tax and liquidity problems
1
Premature Withdrawal Without Checking Penalty
Banks charge a 0.5–1% penalty on premature FD withdrawal. If you break a 5-year FD in year 3, you lose the penalty AND the compounding benefit of 2 more years. Always check the penalty before breaking — an overdraft against FD is often cheaper.
2
Ignoring Compounding Frequency
Monthly compounding gives more interest than quarterly, which gives more than annual. ₹1L at 7% for 5 years: annual compounding = ₹1,40,255; quarterly = ₹1,41,478; monthly = ₹1,41,763. Always prefer more frequent compounding when offered at the same rate.
3
Not Submitting Form 15G / 15H
If your total income is below the taxable threshold (₹2.5L general, ₹3L senior), submit Form 15G/15H at the start of each financial year to prevent TDS deduction. Not submitting means TDS is deducted and you must claim a refund in your ITR — a waste of time and working capital.
4
Auto-renewal at Lower Rate
Most banks auto-renew your FD at the prevailing rate on the maturity date — which may be lower than your original rate. Set a calendar reminder a week before maturity to review and manually renew at the best available rate, or switch to a different bank.
5
Depositing All Money in One Bank
DICGC insures only ₹5 lakh per depositor per bank (all accounts combined). If a bank fails, any amount above ₹5L is at risk. Spread large FD investments across multiple banks to maximise insurance coverage.
6
Ignoring Inflation — FD is Not Always Safe in Real Terms
At 7% FD rate with 30% tax, your post-tax return is 4.9%. With 5% inflation, your real return is negative. FD is capital-safe but not inflation-proof. For goals 5+ years away, consider equity mutual funds alongside FDs for real wealth creation.
7
No Nomination on FD
Without a nominee, your family must go through a lengthy legal process (succession certificate, probate) to claim your FD on death. Add a nominee when opening — it's free and takes 2 minutes. You can change the nominee anytime.
8
Choosing Corporate FD Without Checking Credit Rating
Corporate FDs offer 1–2% higher rates because they carry higher credit risk. They are NOT insured by DICGC. Only invest in corporate FDs rated AAA or AA+ by CRISIL/ICRA. Never invest emergency funds in corporate FDs — invest only surplus money.
Frequently Asked Questions
Everything you need to know about Fixed Deposits
What is a Fixed Deposit and how does it work?
A Fixed Deposit (FD) is a financial instrument where you deposit a lump sum with a bank or NBFC for a fixed tenure at a pre-agreed interest rate. The bank pays you interest (monthly, quarterly, or at maturity) and returns your principal at the end of the tenure. The rate is locked in at the time of booking — market rate changes don't affect your FD.
Is FD interest fully taxable?
Yes. FD interest is added to your total income and taxed at your income tax slab rate (5%, 20%, or 30%). The bank deducts TDS at 10% if interest exceeds ₹40,000/year (₹50,000 for senior citizens). If your total income is below the taxable limit, submit Form 15G or 15H to prevent TDS deduction.
What is the DICGC insurance on FDs?
Deposit Insurance and Credit Guarantee Corporation (DICGC) insures up to ₹5 lakh per depositor per bank — covering all savings, current, FD, and RD accounts combined. If a bank fails, you are guaranteed to get up to ₹5L. This does NOT apply to corporate FDs or post office schemes (which have sovereign guarantee instead).
Can I withdraw my FD before maturity?
Yes, you can break an FD prematurely. The bank pays interest at the rate applicable for the actual period held (not the booked rate), minus a penalty of 0.5–1%. Tax-saving FDs (5-year) cannot be withdrawn before maturity. Alternative: take an overdraft against your FD at FD rate + 1–2% — often cheaper than breaking it.
What is the difference between cumulative and non-cumulative FD?
Cumulative FD: Interest is compounded and paid at maturity along with principal. Better for wealth creation as compounding works in full. Non-cumulative FD: Interest paid out at regular intervals (monthly, quarterly, annually) — useful for people who need regular income, like retirees. The rate of return is the same; the difference is only in when you receive the interest.
What is FD laddering and why should I use it?
FD laddering means splitting your total investment into multiple FDs with staggered maturity dates (e.g., ₹1L each maturing in 1, 2, 3, 4, and 5 years). Benefits: (1) You always have an FD maturing soon for liquidity, (2) you reinvest at current rates, capturing rate increases, (3) you avoid locking all funds at one rate for too long.
Can NRIs open FDs in India?
Yes. NRIs can open NRE FDs (rupee-denominated, tax-free in India, fully repatriable — principal and interest) or NRO FDs (from Indian income like rent or dividends, subject to TDS at 30%, partially repatriable). FCNR (Foreign Currency Non-Resident) deposits are another option allowing deposit in foreign currency.
What is the difference between bank FD and post office FD?
Post office FD has sovereign guarantee (backed by Government of India) — considered safer than bank FD. Current PO FD rates: 1 yr (6.9%), 2 yr (7.0%), 3 yr (7.1%), 5 yr (7.5%). Bank FD rates vary by bank and can be higher or lower. PO 5-year FD qualifies for 80C deduction. Bank FDs have DICGC insurance up to ₹5L.
Is a flexi or sweep FD better than a regular savings account?
Yes, for most people. A flexi FD automatically moves surplus money (above a threshold like ₹25,000) from your savings account to an FD. You earn FD rates on that money while retaining instant access. If you need the money, it auto-breaks the FD in multiples (LIFO basis), paying FD interest on the withdrawn portion. Banks like HDFC, ICICI, and SBI offer this.
What happens to my FD if the bank fails?
DICGC steps in and pays up to ₹5 lakh (principal + interest combined) per depositor within 90 days of the bank's licence cancellation. Any amount above ₹5L becomes an unsecured creditor claim and may be partially or fully lost, depending on the bank's asset recovery. This is why spreading deposits across banks matters for large amounts.