Which bank offers the highest FD rate in 2026?

Small finance banks like AU, Equitas, and Jana typically offer 7.5-8.5% on FDs. Among large banks, HDFC and ICICI offer around 7-7.5% on 1-3 year FDs. Always check the bank's current rate before booking.

FD Calculator 2026 – Fixed Deposit Returns India

FD Calculator —
Know Your Maturity Amount

Calculate exactly how much your Fixed Deposit will be worth at maturity. Compare simple and compound interest FDs across any bank or NBFC. This calculator is built for Indian investors and taxpayers using the latest rules from the Income Tax Act, SEBI regulations, EPFO guidelines, and RBI circulars applicable for FY 2025-26. All results update instantly in your browser with no data transmitted to our servers. Use the inputs to model your specific scenario, then compare against the current year limits and rates shown on the Income Tax Department portal at incometax.gov.in. This calculator follows the exact mathematical formulas prescribed by the Income Tax Act, SEBI regulations, EPFO guidelines, RBI circulars, and AMFI rules for FY 2025-26. Results update instantly in your browser. No data is stored or transmitted. Use these results as a planning baseline and consult a SEBI-registered investment adviser or Chartered Accountant for decisions involving significant amounts. The most accurate and current tax rates are available on the Income Tax Department portal at incometax.gov.in and the GST portal at gst.gov.in. Understanding the precise mechanics of this calculation enables better financial decisions. Every input variable has a different sensitivity — some inputs change the result dramatically while others have minimal impact. For investment calculators, the return rate assumption is the most sensitive variable. For tax calculators, your filing status and deductions matter most. For loan calculators, the interest rate and tenure interact to determine total cost. Running multiple scenarios with conservative, realistic, and optimistic assumptions gives a range of outcomes rather than a single number, which is the foundation of sound financial planning.

FD Calculator — Common Questions

How is FD interest calculated?+

FD interest is calculated using compound interest formula: A = P(1 + r/n)^(nt), where P is principal, r is annual rate, n is compounding frequency, and t is tenure. Most banks compound quarterly (n=4). A ₹1 lakh FD at 7% for 5 years compounded quarterly gives ₹1,41,478 — interest of ₹41,478. Simple interest on the same FD would give only ₹35,000 in interest.

Which banks offer the highest FD rates in 2026?+

Small Finance Banks (SFBs) like Unity SFB, Suryoday SFB, and ESAF SFB typically offer the highest FD rates (8–9% p.a.) in India. Senior citizens get an additional 0.25–0.5% over regular rates at most banks. Large PSU banks (SBI, PNB) offer 6.5–7.5%. NBFCs like Bajaj Finance offer competitive rates. Always verify current rates directly with the bank as they change frequently.

Is FD interest taxable?+

Yes. FD interest is fully taxable as "Income from Other Sources" at your income tax slab rate. Banks deduct TDS at 10% if annual interest exceeds ₹40,000 (₹50,000 for senior citizens). If you are in the 30% tax bracket, a 7% FD effectively earns only 4.9% after tax — making it a poor real return after 6% inflation. Tax-saving FDs (5-year lock-in) offer Section 80C deduction on the principal but interest remains taxable.

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

In a Cumulative FD, interest is compounded and paid at maturity along with the principal — ideal for wealth creation. In a Non-Cumulative FD, interest is paid out periodically (monthly, quarterly, or annually) — suitable for generating regular income, especially for retirees. Cumulative FDs always generate more total interest than non-cumulative FDs due to compounding, but non-cumulative FDs provide liquidity through periodic interest payouts.

Should I invest in FD or mutual fund SIP?+

For a 1–3 year horizon with capital protection need: FD is better. For 5+ year horizon with inflation-beating growth goal: equity SIP is significantly better. A 7% FD after 30% tax and 6% inflation gives a real return of approximately -1.1% (you actually lose purchasing power). An equity SIP averaging 12% after tax gives approximately 5–6% real return. Most financial advisors recommend FD for emergency funds and short-term goals, and SIP for long-term wealth creation.