Fixed Deposit (FD) Calculator

Updated for FY 2026. Last Updated: July 2026. Instantly calculate your Fixed Deposit (FD) maturity values, cumulative compounding interest, and periodic non-cumulative cash payouts.

Last Updated: July 2026•Verified By: GSTWaala Editorial Team

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Reviewed: GSTWaala Editorial Team & RBI Regulations Updated: July 2026 Rules: Fixed Deposit interest compounding u/s Income Tax Act 1961 provisionsFree & No Registration Mobile-Friendly Layout

Disclaimer: Calculations are based on the latest Indian Income Tax provisions (including updates u/s Finance Act 2024). This tool is intended for educational guidance only and does not constitute formal financial, investment, or legal advice.

⚡ Load Example Presets

FD Investment Inputs

Investment Amount (₹)

Interest Rate (% p.a.)

Duration (Years)

Duration (Months)

Compounding Frequency

FD Investment Type

Cumulative (Reinvest)Non-Cumulative

Senior Citizen FD Rates?

Yes (Add premium)No (Standard rate)

How to Use the Fixed Deposit (FD) Calculator

Enter your expected Principal Investment Amount (₹1,00,000 is default).
Specify the annual Interest Rate (%). Toggle the 'Senior Citizen' option to automatically add the standard 0.50% interest boost.
Set the tenure duration in Years and Months (e.g. 5 Years).
Select the Compounding Frequency (Quarterly is standard).
Toggle between Cumulative FD (interest is reinvested) and Non-Cumulative FD (interest paid out periodically) to check maturity breakdowns.

Mathematical Formula & Calculations

Reviewed by GSTWaala Editorial Team•Based on Current RBI Compounding Rules & Bank Slab Formulations•Last Updated: July 2026

Compounding Rest Rule:Indian commercial banks utilize quarterly compounding rests (n=4) on FDs of 6 months and above.

Calculation Model:Calculations resolve full compounding intervals first and apply simple interest on any remaining broken-period months.

Senior Citizen Premium:Senior rates are configured with a standard +0.50% boost over regular rates, matching central bank norms.

Worked Examples of Fixed Deposit Calculations

Example 1: General Cumulative FD

Scenario: Principal: ₹1,00,000. Interest: 7.00%. Duration: 5 Years. Compounding: Quarterly.

Principal Invested: ₹1,00,000
Interest Earned: ₹41,478
Maturity Value: ₹1,41,478
Effective Yield: 8.30%

Example 2: Monthly Payout (Non-Cumulative)

Scenario: Principal: ₹5,00,000. Interest: 7.50%. Duration: 10 Years. Compounding: Monthly.

Principal Invested: ₹5,00,000
Interest Earned (Payouts): ₹3,75,000
Maturity Value: ₹5,00,000
Monthly Income: ₹3,125

Example 3: High Value Cumulative FD

Scenario: Principal: ₹10,00,000. Interest: 8.00%. Duration: 15 Years. Compounding: Quarterly.

Principal Invested: ₹10,00,000
Interest Earned: ₹22,81,031
Maturity Value: ₹32,81,031
Effective Yield: 15.21%

Current Bank FD Interest Rates (FY 2026-27)

SBI6.80% - 7.30%

HDFC Bank7.25% - 7.75%

ICICI Bank7.20% - 7.70%

Axis Bank7.25% - 8.00%

PNB6.75% - 7.25%

Disclaimer: Fixed deposit interest rates are subject to change regularly by the central bank (RBI) and commercial lenders. Rates shown above represent typical 1–3 year maturities. Please check with respective bank branches before investing.

Taxation Rules on FD Interest (TDS & Slabs)

Interest income earned on Fixed Deposits is fully taxable in India. It is treated as "Income from Other Sources" and added directly to your annual gross income, taxed according to your applicable slab rate under both the Old and New Tax Regimes.

TDS Deductions

Banks deduct 10% TDS automatically if total annual interest exceeds ₹40,000 (₹50,000 for senior citizens). If PAN is not provided, TDS increases to 20%.

Form 15G / 15H

Submit Form 15G (under 60 years) or Form 15H (senior citizens) to request zero TDS deductions if your total annual taxable income falls below exemption limits.

Section 80TTB

Senior citizens (aged 60 and above) are eligible to claim a deduction of up to ₹50,000 on deposit interest, making that segment completely tax-free.

Decision Matrix: When Should You Choose an FD?

Choose an FD if:

✔ You need absolute protection of your principal capital
✔ You have a short-to-medium term savings goal (under 5 years)
✔ You are building a secure liquid emergency corpus
✔ You are a senior citizen seeking stable regular interest pension

Avoid an FD if:

✘ You are aiming to beat high inflation over long horizons
✘ You want to build exponential long-term retirement wealth
✘ You can absorb short-term equity market volatility for higher returns

Who Should Use This Tool?

Salaried Employees

Check your accrued gratuity reserves before switching employers, planning early retirement, or negotiating resignation payouts.

HR Professionals

Instantly cross-verify separation final settlements, employee gratuity sheets, and compliance calculations u/s Payment of Gratuity Act.

Employers & Founders

Estimate aggregate future separation gratuity liabilities and structure legal reserve funds for audits or accounting provisions.

Retirement Planners

Factor in tax-exempt separation allowances to map future capital cashflows and retirement wealth strategies.

Employees Changing Jobs

Verify if your service period qualifies for exit gratuity and calculate the tax-free exemption portion of your payout.

Payroll Teams

Ensure separation slips contain precise tax splits (tax-free exemption vs taxable portion) u/s Section 10(10).

Fixed Deposit Compounding Formulas

1. Cumulative Fixed Deposit Compounding Formula

For cumulative deposits, interest is compounded periodically and reinvested back into the deposit. The maturity amount is calculated using the following compounding formula:

A = P × (1 + r/n)^P_comp × (1 + r × R_broken / 12)

Where:

A: Maturity Amount
P: Principal Investment Amount
r: Annual interest rate (decimal, e.g. 0.07 for 7%)
n: Compounding intervals per year (4 for quarterly, 12 for monthly, 1 for yearly)
P_comp: Number of completed compounding intervals in the tenure
R_broken: Remainder months (broken periods) less than a full interval

2. Simple Interest Non-Cumulative Formula

For non-cumulative deposits, interest returns are paid out at regular frequencies, meaning interest is not reinvested. The interest earned is computed simply as:

Interest = P × r × (Total Months / 12)

Compare Fixed Deposit with Other Investments

Before committing long-term funds, check how Fixed Deposits stand in comparison to other popular savings tools in terms of risk, return potential, and lock-in constraints:

Investment Mode	Risk Level	Return Profile	Lock-in Period
Fixed Deposit (FD)	Low (Sovereign Safety)	Medium (6.5% - 7.75% p.a.)	Yes (Preselected tenure, premature charge)
Mutual Fund SIP	Medium to High	High (12% - 15% historical)	No (Except ELSS tax savers which lock for 3 years)
PPF (Provident Fund)	Low (Govt Backed)	Medium (7.1% p.a. tax-free)	15 Years (Partial withdrawals allowed after yr 6)
EPF (Salaried Employees)	Low (Sovereign Backed)	Medium (8.15% - 8.25% p.a.)	Employment bound (Locked until retirement/unemployment)

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Frequently Asked Questions

A Fixed Deposit (FD) is a secure financial investment offered by banks and non-banking financial companies (NBFCs) in India, where you deposit a lump sum for a fixed period at a guaranteed interest rate. It offers higher returns than a regular savings account and has sovereign or commercial safety backings.

FD interest calculations depend on the FD type selected. For Cumulative FDs, interest is compounded quarterly (or monthly/yearly) using the formula: A = P * (1 + r/n)^(n*t), where A is the maturity amount, P is the principal, r is the annual rate, n is compounding frequency, and t is years. For Non-Cumulative FDs, simple interest is calculated on the principal and paid out regularly.

In a Cumulative FD, the interest earned is reinvested (compounded) and added back to the principal amount at regular intervals. The total accumulated interest and the original principal are paid together at the time of maturity, maximizing wealth growth through compounding.

In a Non-Cumulative FD, the interest earned does not compound. Instead, it is paid out directly to your savings bank account at chosen periodic intervals (monthly, quarterly, half-yearly, or yearly), serving as a regular source of pension or income.

A higher compounding frequency yields more returns due to the compounding effect. Therefore, monthly compounding earns slightly more interest than quarterly compounding, which in turn earns more than half-yearly and yearly compounding for the same nominal interest rate.

Yes, you can prematurely withdraw your Fixed Deposit before the completion of its tenure. However, most Indian banks charge a premature withdrawal penalty, typically reducing the applicable interest rate by 0.5% to 1.0% for the duration the deposit was held.

Yes. Fixed Deposit interest returns are fully taxable. The interest you earn is added to your total annual taxable income and taxed according to your applicable income tax slab rate under the head 'Income from Other Sources'.

Banks deduct 10% TDS (Tax Deducted at Source) on your FD interest if the aggregate interest earned across all branches of that bank exceeds ₹40,000 (₹50,000 for senior citizens) in a financial year. If you do not provide your PAN, TDS is deducted at 20%.

Form 15G is a self-declaration form submitted by individuals below 60 years of age to request banks not to deduct TDS on their FD interest, provided their total annual taxable income is below the basic exemption threshold.

Form 15H is a self-declaration form similar to Form 15G, but specifically for senior citizens (aged 60 years and above) to prevent TDS deduction on FD interest when their net income tax liability for the financial year is zero.

Yes, almost all Indian commercial banks and post offices offer senior citizens (aged 60 years and above) a premium interest rate, which is typically 0.25% to 0.75% per annum higher than the standard rate offered to regular depositors.

Yes. By toggling the FD type to 'Non-Cumulative' and selecting 'Monthly' compounding frequency in our calculator, you can estimate the regular monthly interest payout amount you will receive from your bank.

The GSTWaala FD Calculator is 100% accurate, conforming mathematically to RBI guidelines and Indian banking standards. It handles yearly, half-yearly, quarterly, and monthly compounding frequencies, including simple interest calculations for broken-period months.

Small Finance Banks and non-banking financial companies (NBFCs) usually offer the highest FD rates (often 7.5% to 8.5%). Major public and private commercial banks (SBI, HDFC, ICICI, PNB) typically offer interest rates ranging between 6.5% and 7.5% depending on tenure.

Historically, standard bank FD interest rates struggle to beat inflation, especially after accounting for income tax liabilities. To generate real positive returns, investors often combine secure FDs with tax-saving debt instruments or equities.

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Compliance Note

All calculations are updated to reflect the tax codes, slabs, and deductions in effect for Financial Year 2025-26 (Assessment Year 2026-27). This tool runs entirely client-side; no data is transmitted or stored on our servers.