FD Calculator

What is a fixed deposit (FD) calculator?

A fixed deposit calculator computes the exact maturity amount and total interest earned on a bank FD by applying the compound interest formula to your principal, rate, tenure, and compounding frequency. Instead of working through the math manually, you enter your deposit details and get the maturity value instantly.

This calculator covers both cumulative and non-cumulative modes, handles tenures as short as 7 days, and shows the effective annual yield when compounding is more frequent than annual. The FD Ladder tab adds a second dimension: it shows how splitting one large deposit into five staggered tranches generates more interest while releasing a portion every year.

How FD interest is calculated in India

Indian banks use compound interest for cumulative FDs. The formula is A = P x (1 + r/n)^(n x t), where P is principal, r is annual rate as a decimal, n is compounding frequency per year, and t is tenure in years. Most banks compound quarterly (n = 4), which is the market standard. Monthly compounding (n = 12) yields slightly more.

A Rs 1 lakh FD at 7% for 1 year compounded quarterly matures at Rs 1,07,186. The same FD compounded monthly returns Rs 1,07,229. The difference widens with longer tenures and higher rates.

FD interest rates: SBI, HDFC, ICICI, Axis, Kotak (2026)

Yes Bank leads among mainstream banks at 7.75% for 1-year and 2-year FDs as of July 2026. IDFC First Bank offers 7.50% for most tenures. SBI, the largest public-sector bank, offers 6.80% for 1 year rising to 7.00% for 2 years. The full comparison table is above the article, with rates for all 12 banks including Post Office NSC.

Use the SIP Calculator alongside this FD calculator if you want to compare whether deploying the same capital in a monthly mutual fund SIP would deliver a better risk-adjusted return over your planned tenure.

Cumulative vs non-cumulative FD: which pays more?

Cumulative FDs pay more total interest because the interest reinvests and itself earns returns. A Rs 2 lakh FD at 7.50% for 3 years cumulative matures at Rs 2,48,432, whereas the non-cumulative version returns just Rs 2 lakh at maturity (with Rs 45,000 paid out in Rs 1,250 monthly instalments across 36 months). The cumulative version earns Rs 3,432 more.

Non-cumulative FDs suit retirees whose monthly expenses depend on investment income. If you do not need the monthly cash flow, cumulative is always the higher-return choice.

What is FD laddering and why does it work?

FD laddering divides a lump sum across multiple FDs with staggered maturities (1 year, 2 years, 3 years, and so on) so a portion matures every year rather than all at once. The annual maturity gives steady liquidity without requiring a premature withdrawal that would trigger a penalty.

Laddering also reduces interest rate risk. If rates rise in year 2, only one tranche comes up for renewal; the rest continue at their locked-in rates. If rates fall, the long tranches protect you by continuing to earn the higher original rate.

A five-tranche ladder typically earns more total interest than parking everything in a single 1-year FD renewed every year, because the 3-year and 5-year tranches earn higher rates. The FD Ladder tab above calculates the precise difference.

How to build an FD ladder with Rs 5 lakh

Divide Rs 5 lakh into five tranches of Rs 1 lakh each. Tranche 1 goes into a 1-year FD at the current 1-year rate. Tranche 2 into a 2-year FD, and so on through tranche 5 in a 5-year FD at the best available long-term rate. As each tranche matures annually, reinvest it in a new 5-year FD.

After year 5, all tranches are on 5-year cycles at the best available rate. You receive Rs 1 lakh+ annually without ever breaking an active FD early.

Senior citizen FD rates: 0.25-0.80% extra across banks

Senior citizens (aged 60 and above) receive an additional 0.25% to 0.80% interest above the regular rate at most Indian banks. SBI, HDFC Bank, ICICI Bank, Axis Bank, and Kotak Mahindra all offer a standard +0.50% premium. PNB offers up to +0.80% on some tenures.

The Senior Citizen Savings Scheme (SCSS) from the post office currently earns 8.20% per annum, payable quarterly, and is the highest government-guaranteed rate available to senior citizens. It has a 5-year tenure extendable by 3 years, with a maximum deposit of Rs 30 lakh. Use the SCSS Calculator to check your exact quarterly payout.

Post office FD vs bank FD: which is better?

Post office time deposits carry sovereign guarantee (backed by the central government), while bank FDs are insured only up to Rs 5 lakh per depositor per bank under the DICGC scheme. For amounts above Rs 5 lakh in a single bank, post office schemes offer a meaningful safety advantage.

On returns, IDFC First Bank (7.50%) and Yes Bank (7.75%) offer higher rates than the post office (7.10% for 1-year NSC) but without the sovereign guarantee. The 3-year post office NSC at 7.70% is competitive with the best private bank rates and carries no credit risk.

Tax on FD interest: TDS and how to avoid it with Form 15G/15H

FD interest is fully taxable as income in the year it accrues, even for cumulative FDs where interest is not physically received. Banks deduct TDS at 10% once FD interest exceeds Rs 40,000 per financial year (Rs 50,000 for senior citizens), per the Income Tax Act.

If your total income is below the basic exemption limit (Rs 3 lakh for general taxpayers, Rs 3.5 lakh for senior citizens under the new regime), submit Form 15G (below 60 years) or Form 15H (above 60 years) to your bank at the start of each April. This stops TDS deduction at source. Submitting these forms does not eliminate tax liability; you must still declare the income in your ITR.

For high-income depositors in the 30% tax bracket, the post-tax yield on a 7% FD falls to approximately 4.9%. In this case, the PPF Calculator is worth running: PPF earns 7.10% with EEE tax status (exempt at contribution, accumulation, and maturity), making it materially more efficient for long-term savings in higher tax brackets.

FD vs RD vs PPF: which is right for your goal?

How to break an FD early without losing too much interest

Breaking an FD before maturity triggers a penalty that most banks set at 0.50% to 1.00% below the rate applicable for the holding period. If you invested at 7.50% for 3 years and break after 18 months, the bank applies the 18-month rate (say 7.00%) minus a 1% penalty, so you earn 6.00% instead of 7.50% for the time you held it.

A better alternative: take a loan against your FD. Most banks offer overdraft facilities at 1-2% above the FD rate, letting you access funds without breaking the deposit. For a Rs 3 lakh FD earning 7.50%, a loan at 8.50% costs much less than the interest loss from breaking the FD early, especially if you need the money for a short period.

How to use this FD calculator

1. FD Calculator tab: Set principal (Rs 10K to Rs 50L), interest rate (4% to 10%), and choose a tenure preset from 7 days to 5 years. Pick compounding frequency (Quarterly is the Indian bank standard). Toggle Cumulative to see total maturity; toggle Non-Cumulative to see monthly payouts.
2. Year-by-year table: Click "Year-by-Year Growth" below the calculator to expand the annual breakdown showing opening balance, interest earned, and closing balance for each year.
3. FD Ladder tab: Enter your total investment (Rs 1L to Rs 1Cr) and base rate. The calculator splits it across 5 equal tranches (1Y to 5Y) with rates stepping up by 0.10% per tranche, compounding quarterly. Compare the total corpus against a single 5Y FD and see the liquidity benefit.
4. Bank rate table: The table below the calculator shows July 2026 rates for 12 banks. Use these to set a realistic rate in the slider, or check whether your bank's current offer is competitive.
5. Currency conversion: Click the currency selector at the top-right of the input panel to convert all amounts to USD, EUR, GBP, or other currencies for NRI planning.

Frequently asked questions