FD Calculator. India.
₹5,00,000 FD at 7.25% (quarterly compounding) over 5 years = approximately ₹7.16 lakh maturity. Interest earned: ₹2.16 lakh. India\'s 2026 FD rates range from 6.5-7.5% (1-3 yr) to 7.0-8.0% (5+ yr); senior citizens get +0.5% premium. Most banks compound quarterly.
FD Calculator
FD calculator FAQ.
What is the typical FD interest rate in India in 2026?▾
As of early 2026, Indian bank FD rates range from 6.5% to 7.5% for 1-3 year tenures, slightly higher (7.0-8.0%) for 5+ year tenures. Senior citizens get an additional 0.5% premium. Small finance banks (AU SFB, Equitas SFB, Ujjivan SFB) offer 8.0-9.0% rates for similar tenures. RBI cut policy rate during 2024-2025, bringing FD rates down ~75 bps from 2023 peaks.
How is FD interest calculated — compound or simple?▾
Most Indian bank FDs compound interest quarterly (every 3 months). Formula: Maturity = P × (1 + r/n)^(n × t), where P is principal, r is annual rate, n is compounding frequency (4 for quarterly), and t is tenure in years. Some FDs offer monthly compounding for marginally better returns. Cumulative FDs reinvest interest; non-cumulative FDs pay interest periodically without reinvestment.
Is FD interest taxable?▾
Yes. FD interest is added to your total income and taxed at your applicable slab rate. Banks deduct 10% TDS if your annual FD interest exceeds ₹40,000 (₹50,000 for senior citizens). You can submit Form 15G/15H if your total income is below the taxable limit to avoid TDS. The 5-year tax-saving FD qualifies for Section 80C deduction up to ₹1.5 lakh/year but the maturity interest is still taxable.
FD vs SIP — which is better?▾
Different tools for different goals. FDs offer capital protection and predictable returns (6.5-7.5% in 2026), suitable for short-term goals (1-5 years), emergency funds, and risk-averse retirees. SIPs in equity mutual funds offer higher long-term returns (~12% historical average) but with significant short-term volatility, suitable for long-term goals (10-20+ years) like retirement or children's education. Most balanced portfolios use both: FDs for stability + SIPs for growth.