Minimum ₹1,000. Most banks accept up to any amount.
Check your bank's current FD rate. Rates change frequently.
What is a Fixed Deposit and How is Interest Calculated?
FD Maturity Quick Reference (Quarterly Compounding)
| Principal | 6% / 1yr | 6.5% / 2yr | 7% / 3yr | 7.5% / 5yr |
|---|---|---|---|---|
| ₹50,000 | ₹53,068 | ₹56,912 | ₹61,572 | ₹72,497 |
| ₹1 lakh | ₹1,06,136 | ₹1,13,825 | ₹1,23,144 | ₹1,44,995 |
| ₹2 lakh | ₹2,12,272 | ₹2,27,650 | ₹2,46,288 | ₹2,89,990 |
| ₹5 lakh | ₹5,30,679 | ₹5,69,123 | ₹6,15,719 | ₹7,24,974 |
| ₹10 lakh | ₹10,61,359 | ₹11,38,247 | ₹12,31,439 | ₹14,49,948 |
Post-Tax FD Returns by Tax Bracket
| FD Rate | 0% bracket | 20% bracket | 30% bracket | PPF comparison |
|---|---|---|---|---|
| 6.0% | 6.00% | 4.80% | 4.20% | 7.1% tax-free |
| 6.5% | 6.50% | 5.20% | 4.55% | 7.1% tax-free |
| 7.0% | 7.00% | 5.60% | 4.88% | 7.1% tax-free |
| 7.5% | 7.50% | 6.00% | 5.25% | 7.1% tax-free |
| 8.0% | 8.00% | 6.40% | 5.60% | 7.1% tax-free |
TDS on FD — When Does it Apply?
| Investor Type | TDS Threshold | TDS Rate | How to Avoid |
|---|---|---|---|
| Regular (below 60) | ₹40,000/year per bank | 10% | Submit Form 15G if income below taxable limit |
| Senior citizen (60+) | ₹50,000/year per bank | 10% | Submit Form 15H |
| No PAN provided | Any amount | 20% | Always link PAN with bank |
FD Maturity Formula
Where: A = Maturity amount, P = Principal, r = Annual interest rate (decimal), n = Compounding frequency per year, t = Tenure in years.
Compounding frequency matters
For ₹1 lakh at 6.5% for 2 years: Monthly compounding gives ₹1,13,883. Quarterly gives ₹1,13,825. Annual gives ₹1,13,423. The difference is small but grows significantly with larger amounts and longer tenures.
Cumulative vs Non-cumulative
Cumulative FD: Interest compounds and is paid at maturity — best for wealth building. Non-cumulative FD: Interest paid monthly or quarterly — best for regular income needs.
Example Calculation
Frequently Asked Questions
At 6.5% with quarterly compounding, ₹1 lakh FD for 1 year gives ₹1,06,654 at maturity. At 7%, it gives ₹1,07,186. Use the rate slider to enter your bank's exact current rate.
Yes — FD interest is fully taxable at your slab rate (5%, 20%, or 30%). If annual FD interest from one bank exceeds ₹40,000, the bank deducts 10% TDS. Submit Form 15G (15H for seniors) to avoid TDS if total income is below taxable limit.
For short-term (1-3 years): FD wins — PPF has 15-year lock-in. For long-term: PPF wins for 20%+ tax bracket investors. PPF at 7.1% tax-free beats FD at 7% post-tax (which is only 4.88% at 30% bracket).
DICGC insures up to ₹5 lakh per depositor per bank, covering both principal and interest. If total deposits exceed ₹5 lakh, the excess is uninsured. Spread large deposits across multiple banks.
Small finance banks (AU, Ujjivan, ESAF) typically offer 0.5–1% higher rates than large banks. Always verify the bank is RBI-regulated and DICGC-insured before investing.
Related Calculators
Disclaimer: Results are for informational and educational purposes only — not financial, tax, or legal advice. Tax slabs, rates (EPF, PPF, home loan), and rules shown are based on data available in 2025 and may change. Always verify with a qualified professional or official government sources before making financial decisions.