FD Returns Calculator India 2026 - Fixed Deposit Interest Rates & Maturity Table
TL;DR
Fixed Deposits remain India's most popular safe investment. In 2026, top banks offer 6.5-7.5% for general depositors and up to 8% for senior citizens. Use our FD calculator to compute exact maturity amounts with quarterly or annual compounding, and factor in TDS deductions. A Rs 5,00,000 FD at 7% for 5 years grows to approximately Rs 7,09,260 with quarterly compounding. Key Facts:
- Top bank FD rates (2026): 6.5% - 7.5% for general, up to 8% for seniors
- TDS is deducted at 10% if annual FD interest exceeds Rs 40,000 (Rs 50,000 for seniors)
- Section 80C tax-saving FDs have a 5-year lock-in
- Quarterly compounding yields more than annual compounding
- Post Office Time Deposit rates are government-set and often competitive
FD Interest Calculation Formula
Fixed Deposit maturity is calculated using the compound interest formula:
Maturity Amount = P x (1 + r/n)^(n x t)
Where:
- P = Principal (deposit amount)
- r = Annual interest rate (decimal)
- n = Compounding frequency (4 for quarterly, 1 for annual)
- t = Tenure in years
Example: Rs 5,00,000 FD at 7% for 5 Years
| Compounding | Maturity Amount | Interest Earned |
|---|---|---|
| Annual | Rs 7,01,276 | Rs 2,01,276 |
| Quarterly | Rs 7,09,260 | Rs 2,09,260 |
| Monthly | Rs 7,10,592 | Rs 2,10,592 |
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Top Bank FD Rates in India (2026)
| Bank | 1 Year | 3 Years | 5 Years | Senior Citizen (5Y) |
|---|---|---|---|---|
| SBI | 6.80% | 7.00% | 6.50% | 7.00% |
| HDFC Bank | 7.00% | 7.15% | 7.00% | 7.50% |
| ICICI Bank | 6.90% | 7.10% | 7.00% | 7.50% |
| Axis Bank | 7.00% | 7.15% | 7.00% | 7.75% |
| Post Office TD | 7.00% | 7.10% | 7.50% | 7.50% |
| Bajaj Finance FD | 7.40% | 7.70% | 7.60% | 8.10% |
Senior Citizen Benefits
Senior citizens (60+) typically receive an additional 0.25% to 0.50% on FD rates. Super senior citizens (80+) may get a further 0.25% at select banks. This makes FDs particularly attractive for retirees seeking stable income.
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TDS on Fixed Deposits
TDS (Tax Deducted at Source) applies when your total FD interest across all branches of a bank exceeds the threshold in a financial year.
| Category | TDS Threshold | TDS Rate |
|---|---|---|
| General (below 60) | Rs 40,000/year | 10% |
| Senior Citizen (60+) | Rs 50,000/year | 10% |
| No PAN submitted | Rs 40,000/year | 20% |
- Submit Form 15G (below 60) or Form 15H (60+) if your total income is below the taxable limit
- Split FDs across different banks to stay below thresholds (not recommended for large amounts)
- Note: TDS is not the final tax. You must still report FD interest as "Income from Other Sources" in your ITR
Section 80C Tax-Saving FDs
Tax-saving FDs offer deduction up to Rs 1,50,000 under Section 80C. Key features:
- Lock-in period: 5 years (no premature withdrawal)
- Interest rates: Same as regular 5-year FD rates
- Taxability: Interest is fully taxable (unlike PPF which is tax-free)
- Nomination: Mandatory nomination at the time of opening
Tax-Saving FD vs Other 80C Options
| Investment | Returns | Lock-in | Tax on Returns |
|---|---|---|---|
| Tax-Saving FD | 6.5-7.5% | 5 years | Fully taxable |
| PPF | 7.1% | 15 years | Tax-free (EEE) |
| ELSS | 10-15% (market-linked) | 3 years | LTCG >Rs 1.25L taxed at 12.5% |
| NSC | 7.7% | 5 years | Taxable (but reinvested interest qualifies for 80C) |
Quarterly vs Annual Compounding
Most banks compound FD interest quarterly. Here's how compounding frequency affects your returns on a Rs 10,00,000 FD at 7% for different tenures:
| Tenure | Annual Compounding | Quarterly Compounding | Difference |
|---|---|---|---|
| 1 Year | Rs 10,70,000 | Rs 10,71,859 | Rs 1,859 |
| 3 Years | Rs 12,25,043 | Rs 12,31,439 | Rs 6,396 |
| 5 Years | Rs 14,02,552 | Rs 14,18,519 | Rs 15,967 |
| 10 Years | Rs 19,67,151 | Rs 20,12,196 | Rs 45,045 |
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Frequently Asked Questions
Q: Is FD interest taxable in India?
Yes, FD interest is fully taxable as "Income from Other Sources." It is added to your total income and taxed at your applicable slab rate. The bank deducts TDS at 10% if interest exceeds Rs 40,000 (Rs 50,000 for seniors) in a year, but your actual tax may be higher or lower depending on your total income.
Q: Can I break a tax-saving FD before 5 years?
No. Tax-saving FDs under Section 80C have a strict 5-year lock-in. Premature withdrawal is not allowed. Regular FDs can be broken early, usually with a 0.5-1% penalty on the interest rate.
Q: Which is better - FD or debt mutual funds?
For conservative investors in lower tax brackets, FDs offer guaranteed returns. However, debt mutual funds held for 3+ years benefit from indexation, which can make them more tax-efficient for those in the 30% bracket. FDs are better for predictable income needs and capital protection.
Q: How does the Rs 5 lakh deposit insurance work?
Under DICGC (Deposit Insurance and Credit Guarantee Corporation), each depositor is insured up to Rs 5,00,000 per bank (across all deposits including FD, savings, current accounts). To protect larger amounts, spread deposits across multiple banks.
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