FD Calculator India — Fixed Deposit Maturity Value & Interest 2026
Current FD Interest Rates — India 2026
Rates for general public, 1–3 year tenure. Senior citizens typically get 0.25–0.5% extra.
| Bank | General Public | Senior Citizens |
|---|---|---|
| SBI | 6.80% | 7.30% |
| HDFC Bank | 7.00% | 7.50% |
| ICICI Bank | 7.00% | 7.50% |
| Axis Bank | 7.10% | 7.75% |
| Kotak Bank | 7.10% | 7.60% |
| Bank of Baroda | 7.15% | 7.65% |
Real-World Examples — 2026
₹1 lakh FD at 7% — 3 years (quarterly compounding)
A ₹1 lakh FD at 7% annual interest with quarterly compounding for 3 years yields a maturity value of approximately ₹1,23,145. Total interest earned is ₹23,145. The effective annual yield with quarterly compounding is 7.19% — slightly higher than the nominal rate.
Senior citizen FD — ₹5 lakh at 7.5%, 2 years
Senior citizens in India typically receive 0.25–0.5% higher FD rates. A ₹5 lakh FD at 7.5% for 2 years yields approximately ₹5,80,932 at maturity. Interest income above ₹50,000/year (for senior citizens) is taxable at the applicable slab rate.
Compound vs simple interest comparison
The difference between simple and quarterly compound interest becomes significant over longer tenures.
| Method | ₹1L at 7%, 1 year | ₹1L at 7%, 3 years | ₹1L at 7%, 5 years |
|---|---|---|---|
| Simple | ₹1,07,000 | ₹1,21,000 | ₹1,35,000 |
| Quarterly Compound | ₹1,07,186 | ₹1,23,145 | ₹1,41,478 |
How to Use These Results
Should you choose monthly or quarterly interest payout?
If you need regular income from the FD, choose monthly payout. For wealth accumulation, choose cumulative (compound) — the bank reinvests interest, resulting in a higher maturity value. Cumulative FDs always pay more than payout FDs at the same interest rate.
Is TDS applicable on FD interest?
Yes. Banks deduct TDS (Tax Deducted at Source) at 10% if total FD interest income 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) to your bank to avoid TDS deduction.
Are small finance bank FDs safe?
All bank FDs in India are insured up to ₹5 lakh per depositor per bank under the DICGC (Deposit Insurance and Credit Guarantee Corporation). Small finance banks often offer 0.5–1% higher rates than major banks. Keep individual FDs below ₹5 lakh per bank to maximise insurance coverage.
Frequently Asked Questions
What is the FD interest rate in India in 2026?
FD interest rates in India in 2026 range from 6.8% to 7.5% for general depositors (1–3 year tenure) at major banks. Small finance banks like AU Small Finance Bank and ESAF offer rates up to 8.5%. Senior citizens receive an additional 0.25–0.5% over the general rate.
Is FD interest taxable?
Yes. FD interest is fully taxable as 'Income from Other Sources' at your applicable income tax slab rate. It is not tax-exempt like PPF interest. If interest income exceeds ₹40,000 per year (₹50,000 for senior citizens), the bank deducts TDS at 10%.
What is the maximum FD tenure?
Most banks in India offer FDs for tenures ranging from 7 days to 10 years. The 5-year tax-saving FD qualifies for Section 80C deduction (up to ₹1.5 lakh) but has a 5-year lock-in period with no premature withdrawal allowed.
Can you break a FD before maturity?
Yes, most bank FDs can be broken prematurely. The bank typically charges a penalty of 0.5–1% on the applicable rate for the period held. This reduces the effective interest earned. Some FDs (particularly 5-year tax-saving FDs) cannot be broken before maturity.
How is FD interest calculated with quarterly compounding?
For quarterly compounding: Maturity = P × (1 + r/4)^(4×t), where P is principal, r is annual rate (decimal), and t is tenure in years. For a ₹1 lakh FD at 7% for 3 years: 100000 × (1.0175)^12 = ₹1,23,145.
What is the difference between FD and RD?
An FD (Fixed Deposit) is a one-time lump sum investment. An RD (Recurring Deposit) allows you to invest a fixed amount every month. FD is better when you have a large amount to invest. RD is better for regular monthly savings. Both are bank deposits with DICGC insurance up to ₹5 lakh.