How is FD maturity calculated?

Fixed deposit maturity uses compound interest: A = P x (1 + r/n)^(n x t). Most banks compound FD interest quarterly, so n is 4. The maturity value is the principal plus compounded interest.

Is FD interest taxable?

Yes. FD interest is fully taxable at your income tax slab rate and must be declared as 'income from other sources'. Banks deduct TDS if interest exceeds Rs 40,000 a year, or Rs 50,000 for senior citizens.

What FD interest rate can I expect?

Bank FD rates in 2026 are typically 6.5% to 7.5% depending on tenure and bank. Senior citizens usually get 0.25% to 0.5% extra. Small finance banks may offer slightly higher rates.

Can I withdraw an FD before maturity?

Most FDs allow premature withdrawal but with a penalty, usually 0.5% to 1% lower interest. Tax-saving 5-year FDs have a mandatory lock-in and cannot be withdrawn early.

FD Calculator

Calculate your fixed deposit maturity value and interest earned. Enter the deposit amount, interest rate, tenure and compounding frequency.

Deposit Amount

₹

₹1,000₹5,00,00,000

Five Lakh Rupees

Interest Rate

1%15%

Bank FD rates are typically 6.5% to 7.5%. Senior citizens usually get 0.5% extra.

Tenure

yrs

1 yrs20 yrs

Compounding Frequency

Most banks compound FD interest quarterly.

Deposit Amount

₹5.00 L

Interest Earned

₹2.07 L

Maturity Value

₹7.07 L

Year-by-Year Breakdown

Year-by-Year Breakdown
Year	Amount Invested	Est. Returns	Total Value
Yr 1	₹5.00 L	₹35,930	₹5.36 L
Yr 2	₹5.00 L	₹74,441	₹5.74 L
Yr 3	₹5.00 L	₹1.16 L	₹6.16 L
Yr 4	₹5.00 L	₹1.60 L	₹6.60 L
Yr 5	₹5.00 L	₹2.07 L	₹7.07 L

FD interest is fully taxable at your income slab rate. Banks deduct TDS if interest exceeds Rs 40,000 a year (Rs 50,000 for senior citizens).

What is a fixed deposit?

A fixed deposit (FD) is a savings instrument where you deposit a lumpsum with a bank for a fixed tenure at a fixed interest rate. Your principal is safe (insured up to ₹5 lakh per bank per depositor) and the return is contractual - you know the exact maturity value upfront. Bank FD rates in 2026 are typically 6.5% to 7.5% for regular customers and 0.25-0.5% higher for senior citizens. FD interest is fully taxable at your income slab. Use FDs for emergency money and short-term goals; for long-term wealth, equity SIPs usually beat FDs comfortably after inflation and tax.

How to use the FD Calculator

Enter the deposit amount. The lumpsum you want to lock in.
Set the interest rate. Use the bank's quoted rate. Check senior-citizen rates if eligible.
Choose the tenure. FD tenures range from 7 days to 10 years.
Pick compounding frequency. Most banks compound quarterly; some allow monthly or yearly.
View maturity value. See total interest earned and the final amount you'll receive.

Formula and method

Maturity = P × (1 + r/n)^(n × t)

Where P is principal, r is the annual rate (as a decimal), n is the number of compounding periods per year (4 for quarterly, 12 for monthly), and t is the number of years. This is standard compound interest.

When FDs make sense

Emergency fund. Keep 6 months of expenses in a flexi or short-term FD.
Short-term goals. A wedding, a vacation, a car down payment in under 3 years.
Risk-free income. Predictable, contractual returns. No market risk.
Senior citizens. Higher rates, simpler tax planning, and an interest exemption of ₹50,000 (vs ₹40,000 for under-60s).
Tax-saving option. A 5-year tax-saver FD qualifies for Section 80C (old regime) but has a lock-in.

Sample FD returns at 7% annual, quarterly compounding

Principal	1 year	3 years	5 years
₹1,00,000	≈ ₹1,07,186	≈ ₹1,23,144	≈ ₹1,41,478
₹5,00,000	≈ ₹5,35,930	≈ ₹6,15,720	≈ ₹7,07,388
₹10,00,000	≈ ₹10,71,859	≈ ₹12,31,439	≈ ₹14,14,778

Illustrative pre-tax. FD interest is taxable at your income tax slab. TDS may apply if interest exceeds ₹40,000/year (₹50,000 for senior citizens).