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🏦 FD Calculator India 2025 — Fixed Deposit Maturity & Interest

Free FD calculator. Calculate fixed deposit maturity, interest earned, effective yield and TDS. Includes senior citizen rates. Works for all Indian banks.

💡 Enter your bank's exact rate — results update instantly. Always confirm with your bank before investing.

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Your Result
Maturity Amount
Total Interest Earned
Effective Annual Yield
TDS Deducted

⚠️ Estimates only. Not financial advice. Consult a licensed professional.

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Fixed Deposit Calculator — Complete Guide to FDs in India 2025

A Fixed Deposit (FD) is India's most trusted and widely used savings instrument, with over ₹100 lakh crore deposited across Indian banks. Despite the proliferation of market-linked products like mutual funds, ULIPs, and market-linked debentures, FDs remain the preferred choice for risk-averse savers — offering guaranteed, predictable returns with full principal protection and deposit insurance up to ₹5 lakhs per bank under the DICGC scheme.

How FD Compound Interest Is Calculated

Fixed deposits use the compound interest formula, where interest is calculated on the principal plus previously accumulated interest. Most Indian banks compound interest quarterly, though the effective yield varies based on compounding frequency:

Maturity Amount = P × (1 + r/n)^(n×t) P = Principal Amount r = Annual Interest Rate (decimal) n = Number of compounding periods per year t = Time in years Example: ₹1,00,000 at 7.1% quarterly for 3 years: Maturity = 1,00,000 × (1 + 0.071/4)^(4×3) Maturity = 1,00,000 × (1.01775)^12 Maturity = ₹1,23,474 Interest earned = ₹23,474

Why Compounding Frequency Matters

At the same stated annual rate, more frequent compounding yields higher effective returns. Here is the comparison for ₹5 lakhs at 7% for 5 years:

Annual compounding: Maturity ₹7,01,276 | Interest ₹2,01,276 Half-yearly: Maturity ₹7,04,754 | Interest ₹2,04,754 (+₹3,478) Quarterly: Maturity ₹7,06,647 | Interest ₹2,06,647 (+₹5,371) Monthly: Maturity ₹7,08,007 | Interest ₹2,08,007 (+₹6,731)

TDS Rules — Plan to Avoid or Recover

Banks are required to deduct TDS (Tax Deducted at Source) at 10% when your total FD interest from a single bank exceeds ₹40,000 in a financial year (₹50,000 for senior citizens). This does not mean you pay 10% tax on the interest — your actual tax depends on your income slab. Options to manage TDS:

Submit Form 15G (below 60 years): If your total income is below the taxable limit (₹3 lakh under old regime, ₹3 lakh under new regime for FY2024–25), submit Form 15G at the beginning of each financial year to prevent TDS deduction entirely.

Submit Form 15H (senior citizens, 60+): Similar to 15G, prevents TDS if income is below taxable threshold. Senior citizens have a ₹50,000 TDS deduction threshold rather than ₹40,000.

Claim TDS back in ITR: If TDS was deducted but your actual tax liability is lower (or zero), claim the difference as a refund in your Income Tax Return. The refund typically arrives within 3–6 months of filing.

Best FD Rates by Bank Category — 2025 Overview

Small Finance Banks (Jana SFB, Suryoday SFB, Unity SFB, ESAF SFB, Utkarsh SFB): Currently offering 8–9.25% for various tenures. Deposits are DICGC insured up to ₹5 lakhs. These are regulated, licensed banks — not informal institutions. For amounts within the insurance limit, the higher rates come with no additional risk.

Large Private Banks (HDFC, ICICI, Axis, Kotak): 7–7.5% for most tenures. Senior citizen rates 0.25–0.5% higher. Excellent security and liquidity.

PSU Banks (SBI, PNB, Bank of Baroda, Canara Bank): 6.5–7.1% for general customers. Most also offer a special tenure at slightly higher rates (e.g., SBI's 400-day special tenure).

Always distribute large amounts across multiple banks to maximise DICGC insurance coverage. ₹5 lakhs per bank means ₹20 lakhs across four banks is fully insured — an important consideration for retirees or conservative savers with large FD portfolios.

Frequently Asked Questions
Is FD interest taxable?
Yes — FD interest is added to your income and taxed at your slab rate. TDS at 10% is deducted when annual interest exceeds ₹40,000. Submit Form 15G/15H if your income is below taxable limit.
Which banks have the best FD rates in 2025?
Small Finance Banks (Jana, Suryoday, Unity) offer 8–9%. Large private banks: 7–7.5%. PSU banks: 6.5–7.1%. DICGC insures deposits up to ₹5 lakhs per bank — choose insured banks.
Can I break an FD before maturity?
Yes — most banks charge 0.5–1% premature withdrawal penalty on the applicable rate. Tax-saving FDs (Section 80C) have a mandatory 5-year lock-in with no early exit.
What is cumulative vs non-cumulative FD?
Cumulative: interest compounded and paid at maturity — higher total return. Non-cumulative: interest paid monthly/quarterly — regular income. Choose cumulative for wealth building, non-cumulative for regular cash flow.
Is FD better than SIP for 5 years?
FD gives guaranteed returns — safe for goals within 3 years. Equity SIP historically outperforms over 5+ years but with market risk. Consider your risk tolerance and goal timeline. Use our SIP vs Prepayment calculator to compare.