Fixed Deposit Calculator

Calculate your FD returns for Indian banks

Investment Details

₹
%
Years
Months
Days
Senior Citizen (60+)
Adds 0.5% extra interest

Calculation Results

Maturity Amount
₹0
Total Interest Earned
₹0
Principal Amount ₹0
Interest Rate 0% p.a.
Effective Yield 0%
Total Tenure 0 years
Investment Breakdown
Principal
Interest
Principal
Interest
Cumulative FD
Interest is compounded quarterly and paid at maturity. Higher returns due to compounding effect.

About Fixed Deposits in India

Cumulative FD

Interest is compounded and reinvested. You receive the principal plus accumulated interest at maturity. Best for wealth accumulation. Interest is compounded quarterly (n=4) in most Indian banks.

Non-Cumulative FD

Interest is paid out at regular intervals (monthly, quarterly, half-yearly, or yearly). Principal is returned at maturity. Best for those needing regular income like retirees.

TDS (Tax Deducted at Source)

• 10% TDS if interest exceeds ₹40,000/year (₹50,000 for senior citizens) and PAN is provided
• 20% TDS if PAN is not provided
• Submit Form 15G/15H if your total income is below taxable limit to avoid TDS

Fixed Deposit Returns — How Banks Calculate Your Interest

Simple vs Compound Interest in FDs

Most banks in India use quarterly compounding for fixed deposits, which means interest earned each quarter is added to the principal and earns interest in the next quarter. This compounding effect makes your actual returns slightly higher than the advertised rate. For instance, an FD at 7% with quarterly compounding yields an effective annual rate of about 7.19%. Short-term FDs of less than 6 months may use simple interest instead.

Cumulative vs Non-Cumulative FDs

In a cumulative FD, the interest is reinvested and paid along with the principal at maturity — ideal if you do not need regular income. Non-cumulative FDs pay interest at monthly, quarterly, or annual intervals, making them suitable for retirees or anyone relying on passive income. The total payout from a cumulative FD is always higher because of the compounding benefit. Choose based on whether you need periodic cash flow or maximum growth.

TDS on FD Interest and How to Minimize It

Banks deduct TDS at 10% when your total FD interest across all branches exceeds ₹40,000 in a financial year (₹50,000 for senior citizens). If your total income is below the taxable limit, submit Form 15G (or 15H for seniors) at the start of the year to avoid TDS. Splitting deposits across different banks does not help because the TDS threshold applies per bank. Always track your aggregate interest to avoid unexpected deductions.

Senior Citizen FD Benefits

Senior citizens (aged 60 and above) enjoy an additional 0.25% to 0.50% interest rate over regular FD rates at most banks. Some small finance banks offer premiums as high as 0.75%. They also benefit from the higher TDS exemption threshold of ₹50,000 under Section 194A. Under Section 80TTB, seniors can claim a deduction of up to ₹50,000 on interest income from deposits, providing significant tax relief.

Tax-Saver 5-Year FD Under Section 80C

A 5-year tax-saver FD allows you to claim a deduction of up to ₹1.5 lakh under Section 80C. These FDs come with a mandatory lock-in of 5 years and cannot be prematurely withdrawn or pledged as collateral. The interest earned, however, is fully taxable in your hands. If you are in the 30% bracket and want guaranteed returns, compare the post-tax yield of a tax-saver FD with ELSS and PPF before deciding.

Frequently Asked Questions

How is FD interest calculated?

Cumulative FDs use compound interest (quarterly compounding for most banks): A = P(1 + r/4)^(4t). Non-cumulative FDs pay simple interest monthly/quarterly. Our calculator shows both options.

Is FD interest taxable in India?

Yes, FD interest is fully taxable at your income tax slab rate. Banks deduct 10% TDS if annual interest exceeds ₹40,000 (₹50,000 for senior citizens). You can submit Form 15G/15H to avoid TDS if total income is below taxable limit.

Which bank gives the highest FD rate in 2026?

Small finance banks and some NBFCs offer higher FD rates (7.5-8.5%) compared to large banks (6.5-7.5%). However, ensure the institution has strong credit ratings. Bajaj Finance, Shriram Finance, and Unity Small Finance Bank are popular high-rate options.

What is the difference between cumulative and non-cumulative FD?

Cumulative FDs reinvest interest and pay a lump sum at maturity — better for wealth growth. Non-cumulative FDs pay interest monthly or quarterly — suitable for regular income needs like retirees.

Can I break an FD before maturity?

Yes, but premature withdrawal typically incurs a 0.5-1% penalty on the applicable interest rate. Some banks offer no-penalty FDs with slightly lower rates.

Related Calculators