FD Calculator - Fixed Deposit Calculator Online
🏦 Current FD Rates (November 2025): SBI 3.05-6.60% | HDFC 2.75-6.60% | ICICI 2.75-6.60% | Axis 3.00-7.35%
A Fixed Deposit Calculator is an essential financial planning tool that helps investors calculate the maturity amount and interest earned on their FD investments. Whether you're investing with State Bank of India, HDFC Bank, ICICI Bank, Axis Bank, or Post Office, this calculator uses the compound interest formula to provide accurate projections of your returns. With FD interest rates ranging from 3% to 8.5% across Indian banks as of November 2025, understanding your potential earnings has never been more important for smart financial planning.
Calculate Your FD Returns
Understanding Fixed Deposits in India
Fixed Deposits (FDs) are one of the safest investment options in India, offering guaranteed returns with capital protection. Also known as Term Deposits, FDs allow you to deposit a lump sum amount with banks or post offices for a predetermined period at a fixed interest rate. At maturity, you receive your principal plus accumulated interest. The Reserve Bank of India (RBI) regulates bank FDs, ensuring depositor security through insurance coverage up to ₹5 lakh per depositor per bank under the Deposit Insurance and Credit Guarantee Corporation (DICGC).
FDs remain popular among conservative investors seeking predictable returns without market volatility risk. Unlike equity investments or mutual funds, FD returns are unaffected by stock market fluctuations. Banks compete for deposits by offering varying interest rates based on tenure, with longer periods typically fetching higher rates. Senior citizens receive an additional 0.25-0.50% interest premium, making FDs especially attractive for retirees seeking stable income.
How FD Interest is Calculated
Fixed deposit interest is calculated using either simple interest or compound interest, with most banks using compound interest for better returns. The frequency of compounding significantly impacts your final maturity amount. Quarterly compounding (most common) means interest is calculated and added to principal every three months, allowing you to earn interest on interest.
Compound Interest Formula for FD
Where:
- A = Maturity Amount (Principal + Interest)
- P = Principal amount (Initial deposit)
- r = Annual interest rate (in decimal, e.g., 6.5% = 0.065)
- n = Number of times interest compounds per year (Quarterly = 4, Monthly = 12, Half-yearly = 2, Annually = 1)
- t = Tenure in years
Example calculation: For ₹1,00,000 invested at 6.5% for 5 years with quarterly compounding: A = 1,00,000 × (1 + 0.065/4)^(4×5) = 1,00,000 × (1.01625)^20 = ₹1,37,690. Total interest earned = ₹37,690.
Current FD Interest Rates - Major Banks (November 2025)
Fixed deposit interest rates vary across banks and are influenced by the RBI's monetary policy. The repo rate, currently at 5.5%, impacts lending and deposit rates. Here are the latest FD rates from major Indian banks:
| Bank | General Citizens | Senior Citizens | Best Rate Tenure |
|---|---|---|---|
| State Bank of India (SBI) | 3.05% - 6.60% | 3.55% - 7.10% | 444 days (6.60%/7.10%) |
| HDFC Bank | 2.75% - 6.60% | 3.25% - 7.10% | 18 months (6.60%/7.10%) |
| ICICI Bank | 2.75% - 6.60% | 3.25% - 7.10% | 18 months (6.60%/7.10%) |
| Axis Bank | 3.00% - 7.35% | 3.50% - 7.85% | 18 months (7.35%/7.85%) |
| Punjab National Bank (PNB) | 3.50% - 6.60% | 4.00% - 7.10% | 444 days (6.60%/7.10%) |
| Post Office | 6.90% - 7.50% | N/A | 5 years (7.50%) |
Note: Interest rates are subject to change quarterly based on RBI policy and market conditions. Senior citizen rates shown include the 0.50% additional interest benefit. Always verify current rates from official bank websites before investing.
Types of Fixed Deposits
Regular Fixed Deposit
The most common FD type where you deposit a lump sum for a fixed tenure. Interest can be paid monthly, quarterly, half-yearly, annually, or compounded until maturity. Non-cumulative FDs pay periodic interest (monthly/quarterly), ideal for those needing regular income. Cumulative FDs compound interest and pay everything at maturity, maximizing returns through compounding.
Tax-Saving Fixed Deposit
Special FDs with a mandatory 5-year lock-in period qualifying for tax deduction under Section 80C up to ₹1.5 lakh. Interest earned is taxable, and premature withdrawal is not permitted. These FDs offer similar interest rates to regular FDs while providing tax benefits, making them suitable for investors seeking both tax savings and guaranteed returns.
Senior Citizen Fixed Deposit
Exclusive FDs for individuals aged 60 years and above, offering 0.25-0.50% higher interest than regular FDs. Some banks have special senior citizen schemes with even higher rates. With India's aging population, these deposits help retirees generate stable, higher income from their savings without taking market risks.
Flexi Fixed Deposit
Also called sweep-in deposits, these link your savings account with FD. When savings exceed a threshold, excess is automatically transferred to FD earning higher interest. When you need funds, money is automatically withdrawn from FD without manually breaking it, providing liquidity while earning better returns than savings accounts.
Key Benefits of Fixed Deposits
- Guaranteed Returns: Fixed interest rate ensures predictable returns regardless of market conditions, offering complete peace of mind
- Capital Safety: Principal amount is fully protected with insurance coverage up to ₹5 lakh per depositor per bank by DICGC
- Flexible Tenure: Choose from 7 days to 10 years based on your financial goals and liquidity needs
- Higher Interest than Savings: FDs typically offer 3-5% more interest than regular savings accounts
- Loan Facility: Get loans up to 90-95% of FD value at interest rates just 1-2% above FD rate without breaking deposit
- Tax Benefits: Tax-saving FDs offer Section 80C deductions, reducing taxable income by up to ₹1.5 lakh
- Senior Citizen Benefits: Additional 0.25-0.50% interest for citizens aged 60+, enhancing retirement income
- Nomination Facility: Easily nominate beneficiaries ensuring smooth wealth transfer to family members
- Auto-Renewal: Option to automatically renew FDs at maturity with prevailing interest rates
- No Market Risk: Returns unaffected by stock market volatility, economic downturns, or geopolitical events
FD Interest Rate Comparison by Tenure
Interest rates vary significantly based on deposit tenure. Generally, longer tenures offer higher rates, though some banks offer special rates for specific periods like 444 days. Here's how rates typically differ across tenures for general citizens:
| Tenure | SBI | HDFC Bank | ICICI Bank | Axis Bank |
|---|---|---|---|---|
| 7-45 days | 4.50% | 2.75% | 2.75% | 3.00% |
| 46 days - 6 months | 4.50% - 5.50% | 2.75% - 5.75% | 2.75% - 3.50% | 3.00% - 4.50% |
| 6 months - 1 year | 5.50% - 6.25% | 5.75% - 6.25% | 3.50% - 6.25% | 4.50% - 7.00% |
| 1 - 2 years | 6.25% | 6.25% - 6.60% | 6.25% - 6.60% | 7.00% - 7.35% |
| 2 - 3 years | 6.30% | 6.25% | 6.60% | 7.00% |
| 3 - 5 years | 6.00% - 6.30% | 6.00% | 6.00% | 6.50% - 7.00% |
| 5 - 10 years | 6.00% - 6.05% | 6.00% | 6.00% | 6.50% |
Taxation on FD Interest
Understanding FD tax implications is crucial for accurate return calculations. Interest earned on fixed deposits is fully taxable as "Income from Other Sources" under the Income Tax Act. The interest is added to your total income and taxed according to your income tax slab (0%, 5%, 10%, 15%, 20%, or 30%).
Banks deduct TDS (Tax Deducted at Source) at 10% if your annual interest income from all FDs with a bank exceeds ₹40,000 (₹50,000 for senior citizens). If PAN is not submitted, TDS is deducted at 20%. You can submit Form 15G (for individuals below 60) or Form 15H (for senior citizens) to avoid TDS if your total income is below the taxable limit.
Tax-Saving Tip: While FD interest is taxable, investments in 5-year tax-saving FDs qualify for deduction under Section 80C up to ₹1.5 lakh, reducing your taxable income. However, the interest earned remains taxable. For investors in high tax brackets, consider tax-free bonds or debt mutual funds for potentially better post-tax returns.
Premature Withdrawal Rules and Penalties
While FDs are meant for fixed tenures, most banks allow premature withdrawal with certain conditions. Upon early withdrawal, banks typically levy a penalty of 0.5-1% on the applicable interest rate for the actual period the deposit was held. The penalty varies by bank and deposit type.
For example, if you invested ₹1 lakh in a 5-year FD at 6.5% but need to withdraw after 2 years, instead of earning the 5-year rate, you'll receive the 2-year rate minus penalty (say 6.3% - 1% = 5.3%). Some banks don't allow premature withdrawal of tax-saving FDs due to the mandatory 5-year lock-in under Income Tax regulations.
Important: Before breaking an FD prematurely, consider taking a loan against it instead. FD-backed loans offer 1-2% higher interest than your FD rate, making them cheaper than personal loans while keeping your FD intact and continuing to earn interest. This preserves your investment and saves penalty charges.
FD vs Other Investment Options
Comparing FDs with alternative investments helps make informed decisions based on your risk appetite and financial goals. Each option has distinct characteristics suitable for different investor profiles:
| Feature | Fixed Deposit | Savings Account | Recurring Deposit | Debt Mutual Funds |
|---|---|---|---|---|
| Returns | 3-8.5% fixed | 2.5-4% variable | Same as FD | 6-9% variable |
| Risk Level | Very Low (Guaranteed) | Very Low | Very Low (Guaranteed) | Low to Medium |
| Liquidity | Low (Penalty on withdrawal) | Very High (Instant) | Low (Penalty) | High (1-3 days) |
| Investment Type | Lump sum | Flexible | Monthly installments | Lump sum or SIP |
| Tax Treatment | Fully taxable | Fully taxable | Fully taxable | Indexation benefit after 3 years |
| Ideal For | Capital safety, fixed income | Emergency funds, daily use | Monthly savings habit | Better post-tax returns |
Recurring Deposit (RD) Calculator
While FDs involve lump sum investment, Recurring Deposits allow monthly savings with similar benefits. RDs are ideal for salaried individuals wanting to build a corpus through disciplined monthly contributions. Interest rates for RDs are typically similar to FDs of equivalent tenure.
RD Maturity Calculation Formula
Where:
- M = Maturity Amount
- P = Monthly installment amount
- n = Number of months (tenure)
- r = Rate of interest (per annum in %)
Example: Investing ₹5,000 monthly for 5 years (60 months) at 6.5% interest: M = 5,000 × 60 × 61 × (1 + 6.5/400) / 2 = ₹3,53,341 (approx.) Total invested = ₹3,00,000, Interest earned = ₹53,341
How to Open a Fixed Deposit
Opening an FD is simple and can be done online or offline. For existing bank customers, FDs can be opened through net banking or mobile banking apps within minutes. You'll need to select the deposit amount, tenure, and whether you want cumulative (interest paid at maturity) or non-cumulative (periodic interest payouts) option.
For new customers, visit the bank branch with identity proof (Aadhaar, PAN, passport), address proof, passport-size photographs, and initial deposit. Complete the FD application form, submit documents, and receive an FD receipt confirming your investment. Most banks now issue e-FD receipts instead of physical certificates.
Online FD Opening: Major banks like SBI, HDFC, ICICI, and Axis offer completely digital FD opening. Login to your net banking, navigate to deposits section, choose FD type and tenure, transfer funds from savings account, and your FD is created instantly with a unique reference number.
Post Office Fixed Deposits
India Post offers Time Deposits (equivalent to FDs) through its vast network of 1.5 lakh post offices, reaching even remote areas. Post Office FDs currently offer 6.9% to 7.5% interest (as of November 2025), often higher than many banks. The 5-year Post Office Time Deposit qualifies for Section 80C tax deduction.
Post Office deposits are backed by the Government of India, providing even greater security than bank deposits. However, interest rates are fixed by the government and revised quarterly, similar to small savings schemes. Post Office TDs are available in tenures of 1, 2, 3, and 5 years, with minimum investment of just ₹1,000.
Common FD Mistakes to Avoid
Investors often make preventable errors that reduce FD returns or create liquidity issues. Not comparing rates across banks can cost you 0.5-1% returns - check multiple banks before investing. Many ignore the power of compounding frequency; choosing quarterly over annual compounding can increase returns by thousands on large deposits.
Prematurely breaking FDs for small cash needs incurs penalties - instead, keep an emergency fund in savings or take a loan against FD. Not submitting Form 15G/15H when eligible leads to unnecessary TDS deduction and refund hassles. Some investors put all funds in single long-term FD, losing liquidity - create an FD ladder with staggered maturities for better cash flow management.
Overlooking tax implications is another mistake. High-income individuals should calculate post-tax returns before choosing FDs over tax-efficient alternatives like debt mutual funds. Finally, not using nomination facility can create legal complications for family members accessing funds after your death - always nominate beneficiaries.
FD Laddering Strategy
FD laddering is a smart liquidity management strategy where you split your corpus into multiple FDs with staggered maturity dates. Instead of investing ₹5 lakh in one 5-year FD, create five FDs of ₹1 lakh each maturing in years 1, 2, 3, 4, and 5. This provides annual liquidity while maintaining higher average interest rates.
When the first FD matures after year 1, reinvest it for 5 years. Continue this cycle, and after 5 years, you'll have one FD maturing every year while all earn the highest 5-year rate. This strategy balances liquidity needs with maximizing interest earnings, proving especially useful for retirees needing periodic income without sacrificing returns.