FD Calculator

A Fixed Deposit (FD) is a financial instrument where you deposit a lump-sum amount with a bank or NBFC for a fixed tenure at a predetermined interest rate. Your principal is protected, and the interest is guaranteed regardless of market movements. FDs are one of the safest ways to grow money in India, especially for risk-averse investors.

You deposit a lump sum for a fixed period, the bank pays guaranteed interest, and at maturity you receive principal + interest. Most bank FDs use quarterly compounding — interest is added to your principal every 3 months. Once locked, the rate stays the same for the entire tenure, even if market rates change.

Resident individuals, joint holders, minors (with a guardian), HUFs, partnership firms, companies, and NRIs can all open FDs. NRIs have special FD types — NRE FD for foreign-earned money and NRO FD for India-earned income. Senior citizens get preferential rates at most banks.

FDs are available at public sector banks, private banks, small finance banks, NBFCs, and the India Post (Post Office Time Deposit). Small finance banks and NBFCs typically offer higher rates but may carry slightly more risk — check credit ratings before choosing.

As of 2026, FD rates range between 5% and 8.5% at banks, with senior citizens getting an extra 0.25%–0.75%. NBFCs like Bajaj Finance, Shriram Finance offer up to ~9%, but without DICGC cover. Small finance banks (AU, Equitas) often give 8%+ for retail depositors. Rates depend on tenure and depositor age.

FD rates depend on the RBI repo rate, inflation trends, bank liquidity needs, and FD tenure. When the repo rate rises, FD rates eventually rise — but banks transmit the change slowly (usually over 1–3 months). Competition among banks and bank-specific funding needs also influence rates.

When the repo rate rises, FD rates tend to rise; when it falls, FD rates decline — but with a delay of 1–3 months. Banks need to attract deposits when borrowing from RBI gets expensive, so they raise FD rates. Conversely, when RBI cuts rates, banks reduce FD rates to protect margins.

Every bank has different funding needs, risk profile, and competitive strategy. Small finance banks and NBFCs offer higher rates to attract deposits since they lack brand trust. Large public-sector banks like SBI offer lower rates because depositors trust them by default. Always compare across 3–4 options before locking in.

Main types are: Regular FD, Tax-Saving FD (5-year lock-in), Senior Citizen FD, Cumulative FD, and Non-Cumulative FD. Banks also offer flexi FDs (linked to savings), floating-rate FDs (rate adjusts with repo), and NRE/NRO FDs for NRIs.

In a Cumulative FD, interest is reinvested every quarter and paid as a lump sum at maturity — giving higher returns due to compounding. In a Non-Cumulative FD, interest is paid out monthly, quarterly, half-yearly, or annually — ideal for retirees or anyone needing regular income. Cumulative is better for wealth growth; non-cumulative is better for regular cash flow.

A Tax-Saving FD is a 5-year lock-in FD eligible for deduction under Section 80C, up to ₹1.5 lakh. It cannot be prematurely withdrawn, and no loan can be taken against it. The interest earned remains fully taxable — only the principal investment qualifies for 80C. Applicable only under the Old Tax Regime.

The minimum tenure is 7 days; the maximum is 10 years at most banks. Some NBFCs cap the maximum at 5 years. For tenures under 90 days, interest is usually paid only at maturity (no compounding). The sweet spot for most depositors is 1–3 years, balancing rate and liquidity.

The minimum FD amount is usually ₹1,000–₹5,000, depending on the bank. There is no upper limit from the bank's side, but keep DICGC insurance in mind — only ₹5 lakh per depositor per bank is insured. For amounts above ₹5 lakh, spread across multiple banks for full insurance coverage.

As per DICGC rules (2026), up to ₹5 lakh per depositor per bank is insured — this includes all your deposits (savings, FD, RD) at that bank combined. For high-value FDs (above ₹5 lakh), split across 2–3 different banks so every rupee is insured. This is especially important for smaller private or cooperative banks.

Bank FDs are among the safest investment options — backed by DICGC insurance up to ₹5 lakh per bank per depositor. NBFC FDs carry slightly higher risk since they're not covered by DICGC. Always check credit ratings (CRISIL, ICRA, CARE) — AAA-rated NBFCs are considered safe.

DICGC (Deposit Insurance and Credit Guarantee Corporation) is an RBI subsidiary that insures bank deposits up to ₹5 lakh per depositor per bank. Coverage includes savings, current, FD, and RD accounts — combined. If the bank fails, DICGC pays within 90 days. Applies to all scheduled commercial banks and cooperative banks.

NBFC FDs are NOT covered by DICGC insurance, so they're riskier than bank FDs. To minimize risk: stick to AAA-rated NBFCs (Bajaj Finance, Shriram Finance, LIC Housing Finance), limit your exposure to 10–15% of your FD portfolio, and never invest in unrated NBFCs regardless of the rate offered.

Yes, FD interest is fully taxable under "Income from Other Sources". It's added to your total income and taxed as per your slab rate (5%, 20%, 30%, etc.). This applies to both Old and New Tax Regimes. Only NRE FD interest is tax-free — NRO, regular bank, and NBFC FD interest is all taxable.

TDS is deducted by the bank if total FD interest exceeds ₹40,000 per year (₹50,000 for senior citizens). The bank deducts tax before crediting interest. Even if TDS is deducted, you must declare the full interest in your ITR and pay any additional tax as per your slab. TDS is credit — adjusted against your final tax liability.

TDS is 10% with PAN linked to the bank account, 20% without PAN. NRO FD interest attracts 30% TDS regardless. If your total income is below the taxable limit, submit Form 15G (under 60) or Form 15H (60+) at the start of the FY to avoid TDS deduction.

Submit Form 15G (if under 60) or Form 15H (if 60 or older) to your bank at the start of the financial year — only if your total income is below the taxable limit. You'll need to submit separately for each bank. This doesn't make the interest tax-free; it just prevents TDS from being deducted upfront if you have no tax liability.

Yes, most FDs allow premature withdrawal — but with a penalty. Banks charge 0.5%–1% less than the agreed rate for the completed tenure. For example, if your 3-year FD at 7.5% is broken after 1 year, the bank may pay you the 1-year rate (say 6.5%) minus 0.5% penalty = 6%. Tax-saving FDs cannot be broken early.

Typically 0.5%–1% lower than the rate applicable for the actual completed tenure. Some banks also charge a fixed fee (₹50–₹250). Senior citizens often get a waived or reduced penalty at select banks. Always check the specific premature withdrawal clause before signing — varies by bank.

Yes, a Loan Against FD lets you borrow up to 90–95% of your FD value at FD rate + 1–2%. The loan is sanctioned instantly, requires no CIBIL check, and doesn't affect your credit score. Your FD continues earning interest — only the loan amount attracts higher interest. Excellent alternative to breaking the FD.

Yes — almost always. Personal loans charge 12–18% vs Loan Against FD at 9–10%. Loan Against FD has no processing fees typically, instant disbursal, and no CIBIL impact. The only catch: your FD is locked as collateral until the loan is repaid. If you have an FD, use this over a personal loan.

Take a loan against FD if you need money temporarily (under 12 months) — your FD keeps earning and you avoid premature penalty. Break the FD if: (1) you need the money long-term, (2) the loan interest would exceed the FD interest you'd lose, or (3) you want full flexibility. Run the math on both before deciding.

FD interest is calculated using compound interest — usually with quarterly compounding at most banks. The formula is A = P × (1 + r/n)^(n×t), where P is principal, r is annual rate, n is compounding frequency (4 for quarterly), and t is tenure in years. Short FDs (<90 days) typically use simple interest.

Compounding means interest earned also earns interest — quarterly compounding adds gains to your principal 4 times a year. On a ₹1 lakh FD at 7% for 5 years, quarterly compounding gives ₹1.41 lakh vs annual compounding's ₹1.40 lakh. Small difference per year, but meaningful over long tenures.

For highest returns, choose a Cumulative FD with a long tenure (5–10 years) at a small finance bank or AAA-rated NBFC, ideally as a senior citizen. Example combination: 5-year Cumulative FD at AU Small Finance Bank at ~8.5% gives ~51% total return — compared to ~35% on a similar SBI FD at 6.5%. Always verify credit rating and DICGC coverage first.

An FD nominee is the person who receives the FD amount if the depositor dies. Can be spouse, child, parent, or anyone you choose. Multiple nominees can be added with percentage splits. Nomination is a legal trustee arrangement — the nominee holds the money on behalf of legal heirs unless they are the sole legal heir.

Not mandatory, but highly recommended. Without a nominee, your heirs must obtain a succession certificate from court — a 6–12 month process involving legal fees. With a nominee, the bank pays the nominated person within 30 days on death certificate submission. Add a nominee when opening the FD — takes 2 minutes, saves months later.

PAN card, Aadhaar card, a passport-sized photo, and a filled FD application form. For existing account holders, FDs can be opened online with just net banking login. NRIs need passport, visa, proof of NRI status, and overseas address proof. Address proof (utility bill, rent agreement) may be asked if KYC isn't up to date.

Yes, most banks allow FD opening via net banking or mobile app in under 2 minutes — if you already have an account. You choose tenure, amount, and payout option (cumulative or interest-out), and the amount is debited from your savings account instantly. Digital FD receipt is generated immediately.

Yes, you can open unlimited FDs at the same or different banks. Many investors use FD laddering — splitting money into 4–5 FDs of different tenures for better liquidity and rate-averaging. Each FD is a separate contract with its own tenure, rate, and maturity date.

Yes, you can set auto-renewal when opening the FD. On maturity, the principal + interest (or just principal) auto-renews for the same tenure at the then-prevailing rate. If you don't set auto-renewal, the matured amount sits in your savings account earning savings rate (~3–4%) until you act. Always choose a preference to avoid this.

FDs give 2–3x higher interest than savings accounts (5–8.5% vs 3–4%), but the money is locked for the tenure. Use a savings account for emergency fund and monthly expenses; use an FD for idle money you won't need for 6+ months. Flexi FDs (auto-sweep) blend both — automatically moves excess savings into FD and back when needed.

FDs offer guaranteed returns (5–8.5%); equity mutual funds offer higher potential returns (10–14% historical avg) but with market risk. Rule of thumb: FDs for short-term goals (<3 years) and capital preservation; equity MFs for long-term wealth building (>5 years). Debt mutual funds sit between — similar return to FD but with some liquidity and tax efficiency (LTCG).

In an FD, you deposit a lump sum once; in an RD, you deposit a fixed amount every month. Interest rates are similar, but RD builds the habit of monthly saving. FD total return is typically higher because the full principal earns interest from day one. Use FD for windfall/bonus money; use RD for disciplined monthly saving from salary.

PPF gives 7.1% (2026), is 100% tax-free under EEE, with a 15-year lock-in — better for retirement; FDs give 5–8.5% (taxable) with any tenure — better for medium-term goals. PPF has a ₹1.5 lakh annual cap; FDs have no cap. Smart move: max out PPF first (₹1.5L/year), then park surplus in FDs or short-term debt funds.

Yes — for the safe portion of your portfolio, emergency funds beyond the bank buffer, and short-to-medium-term goals (1–5 years). Don't rely on FDs alone — post-tax real return after inflation is often 0–2%. Ideal allocation: 10–20% of total investments in FDs for stability, rest in equity mutual funds for growth.

Top mistakes: putting over ₹5 lakh in one bank (loses DICGC protection), ignoring TDS impact, breaking FDs early for non-emergencies, picking banks without comparing rates, and choosing tenure based on rate alone. Also avoid: NBFC FDs without checking credit rating, forgetting to add a nominee, and defaulting to auto-renewal at lower rates.

No — splitting across banks (for DICGC) and tenures (for liquidity) is smarter. Use FD laddering: for ₹10 lakh, open 4 FDs of ₹2.5 lakh each at tenures of 1, 2, 3, and 5 years. Every year, one FD matures — giving you liquidity plus the ability to reinvest at prevailing rates. Reduces reinvestment risk.

The FD amount is paid to the nominee upon submission of the death certificate, nominee's ID proof, and the FD receipt. If no nominee was added, legal heirs need a succession certificate (6–12 month court process). Joint FDs with "either or survivor" mandate get transferred to the survivor without hassle.

Yes, NRIs can open two types: NRE FD (tax-free interest, fully repatriable, foreign-earned money only) and NRO FD (taxable at 30% TDS, repatriation capped at $1M/year). NRE FDs are ideal for NRIs planning to send money back abroad; NRO FDs are for handling Indian earnings like rent, dividends, or property sales.

A Senior Citizen FD gives 0.25%–0.75% higher interest, a higher TDS exemption limit (₹50,000 vs ₹40,000), and often waives premature withdrawal penalty. Available to anyone 60+ years old. Combine with Form 15H if total income is below the taxable limit to avoid TDS entirely. Many banks also offer priority customer service for senior citizens.

No — once opened, an FD's type cannot be changed. If you want an 80C deduction, open a fresh Tax-Saving FD (5-year lock-in) for the specific amount you want to claim. Remember: the 80C limit is ₹1.5 lakh combined across all eligible instruments (PPF, ELSS, EPF, life insurance, home loan principal, etc.).

Yes — FDs can be pledged for loans, credit cards, locker security deposits, and bid/guarantee bonds. The bank marks a lien on your FD, which continues to earn interest. You can't withdraw the pledged FD until the lien is released. This is common for secured credit cards and bank guarantee applications.

FD laddering means splitting your total FD amount into multiple FDs of different tenures — providing both liquidity and rate-averaging. Example: split ₹5 lakh into five ₹1 lakh FDs of 1, 2, 3, 4, and 5 years. Every year, one matures — reinvest at prevailing rates or use the money. Reduces reinvestment risk and interest rate risk.

Yes — most banks offer minor FDs that can be opened by a parent or guardian in the child's name. The minor becomes the account holder; guardian operates it until the child turns 18. Interest is clubbed to the parent's income for tax purposes until the child is 18. Ideal for long-term goals like education or higher studies.

Post-tax, post-inflation return on FDs is often 0–2%. Example: 7% FD for a 30% slab earner = 4.9% post-tax. If inflation is 5%, real return is just -0.1%. This is why FDs should only be one part of your portfolio — use them for safety and short-term goals, not as your primary wealth-building vehicle.

If auto-renewal was set, the FD renews automatically at the prevailing rate — usually lower than your original rate. If not set, the matured amount sits in your savings account earning just 3–4% interest until you act. After 10+ years of inactivity, the FD is moved to RBI's DEA (Depositor Education and Awareness) Fund — you can still claim it via the bank with KYC.

Bank FDs over 90 days use compound interest with quarterly compounding; shorter FDs use simple interest. Compounding frequency matters: ₹1 lakh at 7% for 5 years gives ₹1.40 lakh with annual compounding, ₹1.41 lakh with quarterly — small difference, but adds up on large amounts and long tenures. Always check the bank's compounding method in the fine print.