Investment Guide
FD Calculator Guide — Fixed Deposit Interest & Returns India 2026
🏛️ Calculate FD Returns
Quarterly, monthly, annual compounding — full FD maturity calculator.
Open FD Calculator →What is a Fixed Deposit?
A Fixed Deposit (FD) is a financial instrument where you deposit a lump sum with a bank for a fixed tenure at a guaranteed interest rate. It is the safest investment in India — insured up to Rs.5 lakh per bank per depositor by DICGC.
FD Interest Rates — Top Banks 2026
| Bank | 1 Year | 3 Years | 5 Years | Senior Citizen |
|---|---|---|---|---|
| SBI | 6.80% | 6.75% | 6.50% | +0.50% |
| HDFC Bank | 7.10% | 7.00% | 7.00% | +0.50% |
| ICICI Bank | 6.90% | 7.00% | 7.00% | +0.50% |
| Axis Bank | 7.10% | 7.10% | 7.00% | +0.75% |
| Kotak Bank | 7.10% | 7.00% | 6.20% | +0.50% |
FD Maturity Formula
Compound FD: A = P × (1 + r/n)^(n×t)
Simple FD: A = P + P×r×t
A = Maturity | P = Principal | r = Rate | n = Frequency | t = Years
FD Compounding — Does It Matter?
Yes! Rs.1 lakh at 7% for 5 years:
- Annual compounding: Rs.1,40,255
- Quarterly compounding: Rs.1,41,478 (+Rs.1,223 more)
- Monthly compounding: Rs.1,41,763 (+Rs.1,508 more)
Most banks compound quarterly. Always ask before opening FD.
Tax on FD Interest
- TDS @ 10% if interest exceeds Rs.40,000/year (Rs.50,000 for seniors)
- FD interest is taxable as per your income slab — 30% slab means only 4.9% effective return on 7% FD
- Submit Form 15G/15H if your income is below taxable limit to avoid TDS
- ELSS/SIP is more tax-efficient for long-term (LTCG @ 10% above Rs.1 lakh)
💡 Senior Citizen Special: Extra 0.5% rate + Rs.50,000 TDS threshold + Section 80TTB deduction of Rs.50,000 on interest income makes FD excellent for retirees.