FD Calculator 2026
Calculate your Fixed Deposit maturity amount, interest earned, and compare returns with different compounding options. Updated with latest bank FD rates.
SBI: 7.25%
HDFC: 7.25%
ICICI: 7.20%
Axis: 7.15%
Enter FD Details
Minimum: ₹1,000 for most banks
Check your bank's current FD rate
Years and months
Your FD Returns
Principal Amount
₹1,00,000
Total Interest Earned
₹7,186
Maturity Amount
₹1,07,186
Effective Annual Rate
7.40%
TDS Deducted (10%)
₹0
Post-Tax Returns
₹1,07,186
What is a Fixed Deposit (FD)?
Fixed Deposit (FD) is a financial instrument provided by banks and NBFCs that offers a higher interest rate than regular savings accounts. You deposit a lump sum for a fixed tenure, and earn guaranteed interest on it.
Key Feature: FD interest rates are fixed at the time of booking and remain unchanged throughout the tenure, protecting you from interest rate fluctuations. This makes FD ideal for risk-averse investors seeking guaranteed returns.
Latest FD Interest Rates 2026 (Major Banks)
| Bank | 1 Year | 2 Years | 3 Years | 5 Years | Senior Citizen (+) |
|---|---|---|---|---|---|
| SBI | 6.80% | 7.00% | 6.75% | 6.50% | +0.50% |
| HDFC Bank | 6.60% | 7.25% | 7.00% | 7.00% | +0.50% |
| ICICI Bank | 6.70% | 7.20% | 7.00% | 7.00% | +0.50% |
| Axis Bank | 6.70% | 7.15% | 7.10% | 7.00% | +0.50-0.75% |
| Kotak Mahindra | 6.75% | 7.20% | 6.50% | 6.20% | +0.50% |
| PNB | 6.80% | 7.00% | 6.50% | 6.50% | +0.50% |
*Rates as of February 2026. Please verify with respective banks as rates change periodically.
How FD Interest is Calculated
FD interest is calculated using the compound interest formula:
A = P × (1 + r/n)^(n×t)
Where:
A = Maturity Amount
P = Principal (Deposit Amount)
r = Annual Interest Rate (in decimal)
n = Compounding Frequency (4 for quarterly, 12 for monthly)
t = Time in Years
Where:
A = Maturity Amount
P = Principal (Deposit Amount)
r = Annual Interest Rate (in decimal)
n = Compounding Frequency (4 for quarterly, 12 for monthly)
t = Time in Years
Cumulative vs Non-Cumulative FD
| Feature | Cumulative FD | Non-Cumulative FD |
|---|---|---|
| Interest Payout | At maturity | Monthly/Quarterly/Yearly |
| Compounding Benefit | Yes (higher returns) | No |
| Best For | Wealth building | Regular income needs |
| Total Returns | Higher | Lower |
Tax on FD Interest (TDS Rules 2026)
- TDS Threshold: If FD interest exceeds ₹40,000/year (₹50,000 for senior citizens), bank deducts 10% TDS.
- No PAN: If PAN is not provided, TDS is deducted at 20%.
- Form 15G/15H: Submit these forms if your total income is below taxable limit to avoid TDS.
- Tax Slab: FD interest is added to your income and taxed as per your slab rate (up to 30%).
Tax-Saving FD (5-Year Lock-in)
Tax-saving FDs offer Section 80C deduction up to ₹1.5 lakh per year. However, the interest earned is still taxable. These FDs have a mandatory 5-year lock-in period with no premature withdrawal allowed.
Frequently Asked Questions
What is the best FD tenure for highest returns?
Most banks offer highest interest rates for 1-2 year tenure. However, this varies by bank. Currently, many banks offer peak rates at 1 year 1 day to 2 year tenure. Always compare rates across tenures before booking.
Can I break my FD before maturity?
Yes, most FDs (except tax-saving FDs) can be broken before maturity. However, banks typically charge a penalty of 0.5-1% on the applicable interest rate. Some banks have specific "no penalty" FD products.
Is FD safe? What if bank fails?
FDs in banks are insured by DICGC (Deposit Insurance) up to ₹5 lakh per depositor per bank. This covers both principal and interest. For amounts above ₹5 lakh, consider spreading across multiple banks.
Which is better: FD or PPF?
PPF offers tax-free interest (EEE status) but has 15-year lock-in. FD offers flexibility but interest is taxable. For long-term tax-free wealth building, PPF is better. For short-term fixed returns with liquidity, FD is better.
How to avoid TDS on FD interest?
Submit Form 15G (if under 60) or Form 15H (if senior citizen) to your bank if your total income is below taxable limit. You can also spread FDs across banks to keep interest under ₹40,000 per bank. Note: This doesn't exempt you from paying tax, only from TDS deduction.