FD / RD Calculator

Calculate your guaranteed returns from Bank Fixed Deposits or Recurring Deposits.

Deposit Type

₹
₹10K₹50L
%
3%15%
Yr
1 Yr20 Yr

Total Invested

₹ 1,00,000

Interest Earned

₹ 44,995

Maturity Value

₹ 1,44,995

₹ 1,44,995

Guaranteed Maturity Amount

Bank FD Interest Rates — May 2025

Comparison of FD rates offered by major Indian banks for general customers and senior citizens (1–3 year tenure). Rates are indicative and subject to change.

Bank 1 Year Rate 2 Year Rate 3 Year Rate Senior Citizen (+)
SBI (State Bank)6.80%7.00%6.75%+0.50%
HDFC Bank6.60%7.00%7.00%+0.50%
ICICI Bank6.70%7.00%7.00%+0.50%
Axis Bank6.70%7.10%7.10%+0.50%
Kotak Mahindra7.10%7.10%7.00%+0.50%
PNB6.80%6.80%6.80%+0.50%
Bank of Baroda6.85%7.25%7.15%+0.50%
Small Finance Banks*8.00–9.00%8.50–9.25%8.00–9.00%+0.25–0.50%

* Includes AU SFB, ESAF SFB, Ujjivan SFB, Jana SFB. Higher rates come with slightly higher risk vs scheduled commercial banks. Always verify current rates on the bank's official website before investing.

FD Calculation Formula

Fixed Deposit (Quarterly Compounding)
A = P × (1 + r/4)^(4 × n)
  • A = Maturity Amount
  • P = Principal invested
  • r = Annual interest rate (decimal)
  • n = Tenure in years
Example: ₹1,00,000 at 7.5% for 5 years
A = 1,00,000 × (1.01875)^20 = ₹1,44,995
Recurring Deposit (Monthly Compounding)
M = R × [(1+i)^n − 1] / i × (1+i)
  • M = Maturity Amount
  • R = Monthly installment
  • i = Monthly interest rate (r ÷ 12)
  • n = Total months

TDS on FD Interest — What You Must Know

CategoryTDS Threshold (per bank)TDS Rate
General CustomersInterest > ₹40,000/year10%
Senior Citizens (60+)Interest > ₹50,000/year10%
No PAN providedAny amount20%
Form 15G submittedBelow taxable income limit0% (Nil)
Form 15H (Senior Citizen)Below taxable income limit0% (Nil)
Important: TDS is deducted per bank branch per year, not on total FD interest across all banks. If you have FDs across multiple banks, each applies the ₹40,000 threshold independently — but all interest is still taxable in your ITR.
FD Laddering Strategy — Maximize Returns & Liquidity

Instead of one large FD, split into multiple FDs of different tenures. E.g., ₹5L total: ₹1L each for 1, 2, 3, 4, 5 years. As each matures, reinvest at current rates. Benefits: avoids premature withdrawal penalty, captures rate changes, ensures periodic liquidity.

FD vs RD vs SIP — Which is Right for You?

A quick comparison to help you choose the right instrument based on your risk appetite and financial goals.

FeatureFixed Deposit (FD)Recurring Deposit (RD)Equity SIP (MF)
Investment TypeOne-time lumpsumMonthly installmentsMonthly installments
Typical Returns6.5–9% p.a.6–8% p.a.10–15% CAGR (market-linked)
Returns Guaranteed?✓ Yes✓ Yes✗ No
RiskVery LowVery LowMedium to High
Tax on ReturnsAs per income slabAs per income slab10% LTCG above ₹1.25L
LiquidityAfter penaltyAfter penaltyHigh (T+3 days)
Best ForShort-term safety goalsDisciplined monthly savingLong-term wealth creation (7+ yrs)

Frequently Asked Questions

A Fixed Deposit (FD) requires a one-time lump-sum investment. A Recurring Deposit (RD) involves equal monthly installments over a fixed period. FDs generally offer slightly higher interest rates. Both are low-risk, guaranteed-return instruments ideal for conservative investors.

Indian banks typically use quarterly compounding. Formula: A = P × (1 + r/4)^(4×n), where P is principal, r is the annual rate (decimal), and n is years. Example: ₹1,00,000 at 7.5% for 5 years = ₹1,44,995 (interest earned: ₹44,995).

Yes, FD interest is fully taxable as 'Income from Other Sources' as per your income tax slab. Banks deduct 10% TDS if annual interest from a branch exceeds ₹40,000 (₹50,000 for senior citizens). Submit Form 15G (or 15H for seniors) to avoid TDS if your total income is below the taxable limit.

As of May 2025, major banks offer 6.6–7.25% for 1–3 year FDs for general customers. Senior citizens get an additional 0.25–0.50%. Small Finance Banks (AU, Ujjivan, Jana, ESAF) offer 8–9.25%, carrying slightly higher risk. Always verify current rates on the bank's official website.

Yes, most FDs can be prematurely closed, but banks typically charge a 0.5–1% penalty on the applicable interest rate. Some banks offer 'Flexi FD' or 'Sweep-in FD' that auto-breaks only the needed amount without full closure. Tax-saver FDs (Section 80C, 5-year lock-in) cannot be broken early.

Tax-saver FDs offer deduction under Section 80C (up to ₹1.5 lakh) under the Old Tax Regime. They have a mandatory 5-year lock-in period — premature withdrawal is not allowed. Interest earned is fully taxable, and TDS applies. Under the New Tax Regime, 80C deductions are not available.

FD laddering means splitting a large amount into multiple FDs of different tenures (e.g., 1, 2, 3, 4, 5 years) instead of one big FD. Benefits: periodic liquidity when each matures, ability to reinvest at new rates, and avoiding premature withdrawal penalties.

In a Cumulative FD, interest is compounded and paid at maturity along with principal — ideal for wealth accumulation. In a Non-Cumulative FD, interest is paid at regular intervals (monthly, quarterly, or half-yearly) — ideal for retirees needing regular income.
Reviewed 9 September 2026 Use these quick actions with the result shown on this page.

Transparent calculation

Financial formula and assumptions

MethodFD maturity = principal × (1 + rate ÷ frequency)^(frequency × years); RD uses periodic deposits
  1. Enter the amount, rate and duration.
  2. The tool applies the selected compounding or repayment formula.
  3. Compare scenarios; confirm actual lender or product terms before deciding.

Important assumption: Rates, fees, taxes, timing and rounding can make an actual product result different.

Private by design, useful as an estimate

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Avoid entering passwords, bank credentials or unnecessary identity data. Outputs are estimates or editable templates—not legal, tax, investment, lending or accounting advice.

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