FD Calculator

Rates vary by bank type. As of May 2026:

• Small Finance Banks: Jana SFB leads at 8.25% (general) / 9.00% (senior citizens) for short tenures (6–12 months).
• Large private banks: IDFC First Bank offers up to 7.90%.
• Public sector banks: SBI, Bank of Baroda, and peers cluster at 6.25%–6.65%.

Small Finance Banks are licensed and regulated by the RBI, with DICGC deposit insurance up to ₹5 lakh — the same cover as large banks.

For cumulative FDs (reinvest interest), the formula is:

M = P × (1 + r/n)^n×t — where P is the principal, r is the annual rate as a decimal, n is the compounding frequency (4 for quarterly), and t is tenure in years.

• Example: ₹1 lakh at 7% quarterly for 1 year → ₹1,07,186.
• For tenures under 6 months, banks apply simple interest: M = P × (1 + r×t).

Quarterly compounding earns interest on interest four times a year instead of once, giving a higher effective yield.

• At 7% p.a., quarterly compounding → effective annual yield of 7.19% (vs. 7.00% annual).
• On ₹1 lakh over 5 years: quarterly = ₹1,41,478; annual = ₹1,40,255 — a ₹1,223 difference.

Most Indian banks apply quarterly compounding to cumulative FDs — this calculator defaults to it.

Yes — in both the old and new tax regimes. FD interest is added to your total income and taxed at your applicable slab rate, with no exemption regardless of tenure.

• Banks deduct TDS at 10% (with PAN) if annual interest from a single bank exceeds ₹40,000 (₹50,000 for senior citizens).
• Submit Form 15G (below 60) or Form 15H (senior citizens) to prevent TDS if your total income is below the taxable limit.
• TDS is a withholding, not the final tax — file ITR to pay the balance or claim a refund.

Post-tax interest = gross interest × (1 − your slab rate). Post-tax maturity = principal + post-tax interest.

Example at 30% slab — ₹1 lakh at 7% quarterly for 1 year:

• Gross interest: ₹7,186
• Post-tax interest: ₹5,030 | Post-tax maturity: ₹1,05,030
• Post-tax CAGR: 5.03%

Use the Basic FD tab and select your slab from the After Tax row to see all three figures instantly.

Yes. Most Indian banks offer senior citizens (age 60+) an additional 0.25%–0.75% p.a. over their regular card rates.

• Standard premium: 0.50% p.a. above regular rates.
• Some banks offer a further premium for super senior citizens (80+).

Tick the Senior citizen checkbox in this calculator to add 0.50% to your entered rate and see the revised maturity and yield immediately.

Yes. Small Finance Banks — Jana SFB, AU SFB, Equitas SFB, Ujjivan SFB, Suryoday SFB, and others — are licensed by the RBI and subject to the same regulatory framework as full commercial banks.

• Deposits up to ₹5 lakh per depositor per bank are insured under the DICGC scheme.
• This is the same ₹5 lakh protection available on SBI, HDFC Bank, or ICICI Bank deposits.

It depends on where interest rates are heading.

• Roll over short-term FDs when rates are flat or rising — each renewal captures higher rates. A 1-year rollover can outperform a 5-year lock-in if rates rise 0.5%+ before renewal.
• Lock in long-term when rates are falling — securing today's rate protects your income from future cuts.

Use the FD Rollover tab to compare both strategies: set your rollover rate, your long-term comparison rate, and the number of cycles.

TDS is deducted at 10% (with PAN) when FD interest from a single bank exceeds:

• ₹40,000 per year for regular depositors.
• ₹50,000 per year for senior citizens.
• Rate rises to 20% if you have no PAN.

To avoid TDS:

• Submit Form 15G (under 60, income below taxable limit) or Form 15H (senior citizens) before booking each financial year.
• Spread FDs across multiple banks so no single bank's interest crosses the threshold — a common strategy within an FD ladder.

Note: avoiding TDS does not reduce your tax liability — declare all interest income in your ITR.

SCSS first, then FDs — that is the optimal order for most retirees.

SCSS (Senior Citizens' Savings Scheme):

• Rate: 8.2% p.a., paid quarterly — government-backed and reviewed every quarter.
• Cap: ₹30 lakh total across all SCSS accounts. Fill this quota first.
• Lock-in: 5 years (premature withdrawal allowed after 1 year with a penalty).
• Tax: interest is fully taxable — same as FD income.

FDs for the surplus corpus:

• No cap — park any amount beyond the ₹30L SCSS limit in FDs.
• Stagger tenures (1yr, 2yr, 3yr) for liquidity; cumulative mode for compounding.
• Spread across 2–3 banks to keep per-bank interest below the ₹50,000 senior citizen TDS threshold.
• Small Finance Bank FDs (Jana SFB 9.00%, AU SFB ~8.1%) can beat SCSS rates for short tenures.

Use this calculator's Basic FD tab to compare the exact maturity and after-tax yield for your corpus and preferred tenure.

The right answer depends on where rates are heading and when you need the money.

Book a 5-year FD when:

• Rates are at a cyclical peak and likely to fall — locking in today's rate protects future income.
• You have no near-term liquidity need for the money.
• You want the Section 80C deduction (5-year tax-saver FD; lock-in is mandatory).

Book a 1-year FD when:

• Rates are rising — rolling over annually lets you capture higher rates at each renewal.
• You expect to need the money within 1–2 years.

The third option — an FD ladder: book five FDs at 1, 2, 3, 4, and 5-year tenures simultaneously. You get one maturity per year, earn the 5-year rate on most of your corpus, and reinvest each maturing tranche for 5 years.

Use the FD Rollover tab to model rollover vs lock-in with your actual rates, and the FD Ladder tab to build the staggered structure.

An FD ladder splits your corpus equally across five FDs with staggered maturities — say ₹2 lakh each in 1yr, 2yr, 3yr, 4yr, and 5yr FDs on a ₹10 lakh corpus. One tranche matures every year; you reinvest it into a new 5-year FD. After five years, every slot is a 5-year FD maturing in sequence — permanently.

Why it works:

• You earn the highest long-term rate on the bulk of your corpus.
• 20% of your money is accessible every year without a premature-withdrawal penalty.
• Spreading across multiple banks keeps each bank's annual interest below the ₹40,000 TDS threshold.

The blended return on a ₹10 lakh ladder at indicative rates (7.00%–8.00%) is roughly ₹57,000 more over 5 years than rolling 1-year FDs — and only ₹14,000 less than a full 5-year lock-in, with annual liquidity included.

Use the FD Ladder tab on this calculator to model your corpus, tenure rates, and after-tax returns at your income slab.