Fixed Deposit (FD) Calculator

What is a Fixed Deposit and how is interest calculated?

A Fixed Deposit (FD) is a bank product where you deposit a lump sum for a fixed period at a guaranteed interest rate. Interest is calculated as: Maturity = P × (1 + r/n)^(n×t), where P = principal, r = annual rate, n = compounding frequency, t = years. Most Indian banks compound FD interest quarterly.

Which Indian banks offer the highest FD rates in 2025?

Small Finance Banks lead with 8–9.5% p.a. (AU SFB, Ujjivan SFB, ESAF SFB). Among major banks: SBI 6.5–7.5%, HDFC Bank 7–7.75%, ICICI Bank 7–7.75%, Axis Bank 7–7.75%. Senior citizens get an extra 0.25–0.5% on all FDs.

Is FD interest taxable in India?

Yes. FD interest is taxed at your income slab rate. Banks deduct TDS at 10% if annual interest exceeds ₹40,000 (₹50,000 for senior citizens). Submit Form 15G (below 60) or 15H (senior citizens) if your total income is below the taxable limit to avoid TDS.

What is the difference between cumulative and non-cumulative FD?

Cumulative FDs reinvest interest until maturity — best for wealth creation. Non-cumulative FDs pay interest monthly/quarterly — suitable for retirees needing regular income. At the same rate, cumulative FDs give higher effective returns due to compounding.

Are FD deposits insured in India?

Yes. DICGC (Deposit Insurance and Credit Guarantee Corporation) insures deposits up to ₹5 lakh per depositor per bank (including principal and interest combined). This includes savings, FD, and RD accounts across all branches of that bank.