Fixed deposits remain India's default savings instrument: you lock a lump sum with a bank for a chosen tenure, the bank pays a fixed rate compounded quarterly, and at maturity you get principal plus interest — predictable to the rupee. The decisions that move the outcome are the tenure (rates vary by slab), whether you are a senior citizen (typically +0.50%), and whether interest is paid out or reinvested (cumulative FDs compound; non-cumulative ones pay out and earn less overall). This FD calculator projects the maturity value and total interest for any deposit amount, rate and tenure with standard quarterly compounding, so you can compare a 1-year, 3-year and 5-year FD — or two banks' rate cards — before you lock in.
How FD interest works
Example
₹5,00,000 at 7.25% for 3 years, quarterly compounding. Maturity ≈ ₹6,19,600. Interest ≈ ₹1,19,600. A senior citizen at 7.75% gets ≈ ₹6,29,900.
Tax on FD interest
FD interest is fully taxable at your slab rate, and banks deduct 10% TDS if interest exceeds ₹50,000/year (₹1,00,000 for senior citizens). Submit Form 15G/15H if your total income is below the taxable limit to avoid TDS.
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Frequently asked questions
What is the FD interest rate in India now?
Major banks offer roughly 6.5%–7.75% depending on tenure, with senior citizens getting about 0.50% extra. Small finance banks often pay more.
Is FD interest taxable?
Yes, at your income tax slab rate. TDS of 10% applies above ₹50,000 annual interest (₹1,00,000 for seniors).
Cumulative vs non-cumulative FD?
Cumulative reinvests interest (compounds, higher maturity). Non-cumulative pays interest out periodically — useful for regular income, but the total is lower.
What is the premature withdrawal penalty?
Usually 0.5–1% off the applicable rate for the period the deposit actually ran. Some banks waive it on special deposits.