FD Calculator


Online Fixed Deposit Calculator (FD Calculator)

A FD calculator is used to calculate the maturity amount if you deposit your money in a FD account. It makes it possible for investors to know the end amount of their investments before investing and plan accordingly. All you need to know is the fixed deposit interest rate and you can easily calculate the returns and final amount beforehand. 


Fixed Deposit or FD Calculator Formula

The formula used in a FD calculator employs the simple concept of compound interest. Here’s how to calculate the maturity amount without a FD calculator. FD calculator formula is as follows:



  • A is final amount or the maturity amount
  • P is the amount you deposit or the principal amount
  • R is rate of interest you have been promised the financial institution 
  • T number of years for which you make the FD
  • N is compounded interest frequency

To understand this better, let’s consider an example. Suppose you are investing INR 1,00,000 in a Fixed Deposit for a tenure of 5 years at an interest rate of 7%, which is compounded annually (N=1). As per the formula provided, here’s the calculation you need to make:


After calculation, the final maturity amount comes out to be INR 1,40,255. 

What is Fixed Deposit (FD)?

A fixed deposit often called FD, is a popular investment instrument offered by Banks, Post offices and NBFCs (Non-Banking Financial Companies). FDs require you to deposit a lump sum at the start of the account, instead of small periodic investments like in case of RDs. It is a safe term deposit instrument that generates better returns than a regular bank savings account and RDs. 

FD interest rates are fixed at the time of opening the deposit. They stay the same throughout the maturity tenure irrespective of the market fluctuations. You can use a FD calculator to calculate the amount you will get when your FD matures.

Features of Fixed Deposit (FD)

Here’s a list of features of a fixed deposit account:

1. Lump sum is deposited in a Fixed Deposit 

You can deposit the whole amount in one go, unlike an RD where you need to deposit amounts at regular intervals. It is a great option for lazy, risk averse investors.

2. Maturity Tenure of a Fixed Deposit

The maturity tenure of a FD starts from 7 days and can extend up to 10 years. 

3. Amount Deposited in a Fixed Deposit

The minimum amount that can be deposited in a bank starts at Rs. 1,000 (depending on the bank) while there is no top limit.

4. Guaranteed Returns on a FD

The interest rate that you will get on your FD amount will be predetermined and will continue to be the same throughout the tenure of the FD. This way, the investor earns guaranteed returns on his/her deposit amount. 

5. Power of Compounding in FD

The power of compounding works wonderfully well in the case of FD, since the interest is earned on the whole lump sum on a month/quarterly/maturity (depending on what you choose) bases. The investor can choose to have a monthly pay out option and can receive a regular income at the end of the month from the FD or they can withdraw the fat sum at the end of the FD.

Benefits of Fixed Deposit (FD)

FD investments are considered to be safe and have higher interest rates than their RD counterparts. They also help you in saving taxes in some cases. Here are the most important benefits of investing in a FD:

1. FD is a Safe Investment

The one thing that you can be sure about with a FD is that you will be earnings guaranteed fixed returns throughout the maturity tenure. In fact, you can use a FD calculator beforehand to calculate the exact maturity amount. The state of the economy or the market fluctuations won’t affect your FD interest rates once they are fixed by the bank, PO or NBFC. 

In fact, at the time of making the deposit the investor calculates the amount they will get at the time of maturity. This is what makes FD, one of the most safe and low risk instruments available in the market. 

2. Higher Interest Rates For Senior Citizens

A Fixed deposit offers better interest rates than regular savings bank accounts and even RDs. The simple reason for that is the power of compounding, which works better when the interest is added to the lump sum instead of small amounts. 

However, in case of senior citizens the rate of interest offered is even higher. It is generally seen to be around 0.25% to 0.65% higher. This is what makes FD a fantastic saving and investment tool, especially for senior citizens. 

3. Save Tax With a Tax-Saver FD 

Tax saving fixed deposits allow you to save tax under section 80C of the Indian Income Tax Act, 1961. Any investor who makes an investment in tax saver FDs can claim a deduction on the investment amount up to Rs 1.5 lakh. Tax-saving FDs are the same as any other fixed deposits. 

They have a minimum lock-in period of 5 years with the interest rates ranging from 5.5% – 7.75%.You also have the nomination facility available so that in case of the unfortunate death of the FD account holder, the nominee can claim his/her money. Remember, the interest earned from these tax saving FD schemes is still taxable. 

4. Loan against FD

During any kind of emergency, people need money instantly. In case you need urgent money, you can take a loan by keeping your FD amount as a collateral. The amount of loan is dependent on the FD deposit amount. A loan can be availed up to 90% – 95% of the deposit amount.

One can avail loans  at very low interest rates, since a loan with collateral is a secured loan and hence the rate of interest is lower than a personal loan and other types of loans. This will usually be around 2% more than the FD interest rate. You can keep a fixed deposit as collateral in favour of  paying a penalty and breaking an FD

5. Regular Income From FD

Fixed Deposits give you the option to draw out the interest, cumulatively or non-cumulatively. If you choose the non-cumulative option then you are allowed to draw the interest earned on the deposit amount at regular intervals. 

The interest amount is paid out monthly, quarterly, half-yearly, or annually, as per your choice. You can think of it as a fixed source of income that will be available to you at regular intervals like the salary in your account. 

What are the Types of Fixed Deposit?

There are multiple types of Fixed Deposit accounts that can be opened:

Normal/Standard Fixed Deposits

In a normal fixed deposit account you deposit money for a fixed tenure which can range from 7 days to 10 years. As any other fixed deposit account, the Interest rates offered here are higher than a normal savings account. This is the most basic FD account of all. Anyone from a minor to a member of HUF can open this account.

Senior Citizens’ Fixed Deposits

Senior citizen’s fixed deposit accounts are applicable for individuals above 60 years of age. Most senior citizens FD accounts are eligible for an added interest rate of 0.25 to 0.65% and more flexible tenures. You can easily use a FD calculator to get the final maturity amount for a Senior Citizens’ Fixed Deposits.

Flexi Fixed Deposits

Flexi Fixed deposit allows you to take advantage of both a savings/current account and the fixed deposit account. Think of it, like a two in one account that offers both liquidity and full benefit of a FD. Say you have INR 4,000 in your savings/current account and INR 6,000 in the FD account and you need to withdraw a total INR 6,000.In this case when you withdraw the money, then INR 4,000 will be debited from your savings/current account and INR 2,000 will be taken from the Fixed Deposit account. The amount in the FD account will still be able to earn the maximum interest as offered by the financial institution.  

Tax-Saving Fixed Deposits

Tax-Saving Fixed Deposits come with a lock-in period of 5 years within which you cannot withdraw the amount. Any investor can claim a deduction of a maximum of Rs.1. 5 lakh by investing in tax saver fixed deposits. However, in tax saving fixed deposits loan or premature withdrawal is not allowed. 

 Cumulative Fixed Deposits

In case of cumulative fixed Deposits, the interest is compounded every quarter or year and paid at the time of maturity and you don’t withdraw the interest at regular intervals. The interest is compounded over and over resulting in a substantial grow of the savings amount over the maturity tenure. 

Non-Cumulative Fixed Deposits

Non-Cumulative fixed deposits allow you to draw the interest earned at regular intervals. The interest amount is paid out monthly, quarterly, half-yearly, or annually, as per your choice. You can think of it as a fixed source of income that will be available to you at regular intervals like the salary in your account. This is what makes it a great option for pensioners looking for a regular source of income.

FD Interest Rates: Which bank is best for FD?

FD interest rates are different for every bank, Currently, the post office offers relatively higher rates considering the tenure of deposit is the same for both.


FD Interest Rate

Senior Citizen FD Interest Rates


Allahabad Bank

3.75% – 5.75%

4.25% – 6.25%

Axis Bank

3.50% – 6.10%

3.50% – 6.75%

Andhra Bank

4.00% – 5.90%

4.50% – 6.40%

Bank of India

4.00% – 5.90%

4.50% – 6.40%

Bandhan Bank

3.25% – 6.50%

4.00% – 7.25%

Bank of Baroda

3.50% – 5.70%

4.00% – 6.20%

Bajaj Finance Limited

6.20% – 7.50%

6.45% to 7.75%

Bank of Maharashtra

3.50% – 5.75%

3.50% – 6.25%

Canara Bank

4.00% – 5.75%

4.00% – 6.25%

Central Bank of India

3.70% – 5.65%

4.20% – 6.15%


2.75% – 4.00%

3.25% – 4.50%

DBS Bank

4.00% – 5.70%

4.00% – 5.70%

DCB Bank

5.00% – 7.35%

5.50% – 7.85%


8.50% – 9.25%

9.00% – 9.75%

Dhan Laxmi Bank

3.50% – 6.40%

4.00% – 6.90%

Federal Bank

3.50% – 6.25%

4.00% – 6.75%


3.00% – 6.00%

3.50% – 6.50%


2.50% – 4.25%

3.00% – 4.75%


3.25% – 5.75%

3.75% – 6.25%


3.10% – 5.90%

3.60% – 6.40%

IDFC First Bank

4.00% – 7.25%

4.50% – 7.75%

Indian Overseas Bank

4.50% – 5.75%

5.25% – 6.50%

Indian Bank

3.75% – 5.75%

4.25% – 6.25%

IndusInd Bank

4.00% – 7.00%

4.50% – 7.50%

Jammu And Kashmir Bank

3.50% – 5.70%

4.00% – 6.20%

Karnataka Bank

3.50% – 5.90%

4.00% – 6.40%

Karur Vysya Bank

4.15% – 6.05%

4.15% – 6.55%

Kotak Bank

3.00% – 5.60%

3.50% – 6.10%

Lakshmi Vilas Bank

4.00% – 7.25%

4.00% – 7.25%


3.50% – 5.75%

4.00% – 6.25%


3.50% – 5.75%

4.00% – 6.25%

PNB Housing Finance

7.20% – 7.75%

7.45% – 8.00%

Punjab and Sind Bank

4.00% – 5.85%

4.50% – 6.35%


3.30% – 5.70%

3.80% – 6.50%

South Indian Bank

4.00% – 6.30%

4.50% – 6.80%

Standard Chartered Bank

4.25% – 6.50%

4.25% – 6.50%

Syndicate Bank

4.00% – 6.30%

4.00% – 6.80%

UCO Bank

3.90% – 5.75%

4.15% – 6.25%

Union Bank of India

4.00% – 5.90%

4.50% – 6.40%

United Bank of India

3.50% – 5.75%

4.00% – 6.25%


Factors Affecting Fixed Deposit Interest Rates

The interest rates offered on FD are heavily dependent on multiple factors like the tenure of your FD, age of the account holder and the economic state of the country. Due to the on-going covid crisis, FD has become a very popular choice since the investors are scared of the market fluctuations and are looking for safe investment options. Here are all the factors affecting Fixed Deposit interest rates:

1. Tenure of FD

Tenure or the period of deposit differs from bank to bank and usually ranges from 7 days to 10 years. Different lengths of time accrue different fixed deposit interest rates. 

2. Age of Depositor

Banks and NBFCs offer higher FD interest rates to senior citizens than any other age range. The interest rates may be higher and anywhere between the range from 0.25% to 0.5% over the regular rate of interest for customers.

3. Economic Conditions

Banks, post offices and NBFCs providing fixed deposits keep changing their interest rates every quarter as per the changes prevailing in the economy including change in repo rate by the Reserve Bank of India (RBI) and inflation. This shows how the economic conditions of the state directly affect FD interest rates

4. Amount of Deposit

In some cases, the amount you want to put in your FD also influences the rate of interest a bank, or NBFC will offer you. The higher the amount you want to put in the fixed deposit amount, the higher will be the interest rate offered.

Income Tax on Fixed Deposit Interest

Fixed deposit interest income is taxable as per your income slab rates. In case you are in the lowest slab, you pay less tax or sometimes no tax at all. However, if you are in one of the higher slabs, you need to pay income tax in addition to the tax deducted at source TDS by the bank, NBFC or Post office.

As per the income tax slab rules, if you fall under 2.5 lakhs category of annual income (non-taxable slab), you still have to file form 15G or form 15H. Also, remember that Form 15G is applicable ONLY for people who are under 60 years of age. For senior citizens the form to be used is 15H. 

Annual Income (in INR)

Tax Rate 

TDS (in case of interest above Rs. 40,000)


Less than Rs. 2.50 lakhs

Not Applicable


Between Rs.2.5 lakhs and Rs.5 lakhs

5% of sum exceeding Rs.2.5 lakhs


Between Rs.5 lakhs and Rs.10 lakhs

20% of sum exceeding Rs.5 lakhs


Over Rs. 10 lakhs

30% of sum exceeding Rs.10 lakhs


TDS on FD interest

Yes, the amount in your FD account is taxable. And by amount we mean the interest you earn on your deposited money. TDS or Tax Deducted at Source is applicable on Fixed Deposits. 

If you provide your PAN card then TDS is deducted @10%:

  1. Interest greater than Rs. 40,000 – TDS of 10% is charged on the interest amount you earn if it is greater than Rs. 40,000. Before budget 2019, the limit of TDS on interest income was Rs. 10,000.

  2. Interest less than Rs. 40,000 – If the interest amount is lesser than Rs. 40,000, in that case no TDS is charged. Before budget 2019, the limit of TDS on interest income was Rs. 10,000.This has been done keeping in mind the interest of small depositors. 

If you don’t provide your PAN card then TDS is deducted @20%:

However, if you fail to provide your PAN card then the TDS will be deducted at the rate of 20%. The TDS deducted also depends on your income. 

Opening a Fixed Deposit Account

Opening a fixed deposit account is a simple process. Investors can open a FD account both offline and online. This is how it works.

Online Process: The main advantage of opening an FD account online is that it is a convenient, less time-consuming process. You can easily make payments, renew or close your account. The procedure for opening a FD account online is mentioned below.

  • Open the website of the bank or NBFC where you want to start an account.
  • Create a new ID or log in with an existing ID and select the open FD account option.
  • Fill in the required details like deposit amount, tenure, etc. Once you fill in the details, make the payment via net banking.
  • Download the receipt for future reference.

Remember that the process to open a FD account may slightly vary from bank to bank. For example, on the homepage of State Bank of India, you have to click on ‘Deposit Schemes’ and then select ‘Term Deposits’. On the other hand, on the homepage of HDFC, you have to select ‘Open Fixed Deposits’.

Offline process: Investors can open FD accounts in any bank by visiting the nearest branch. It is immaterial if they are already an account holder or not. The procedure to open a fixed deposit account offline is more or less the same for account holders and non-account holders. 

  • With an existing account: Visit the branch of the bank or the post office and fill up the FD application form and submit it.

  • Without an existing account: Visit the branch and fill in the FD application form. Along with the FD application form, you have to provide identity proof, address proof and some other documents to complete your KYC.

Eligibility Criteria For Fixed Deposit Account

  1. Any individual including members of the Hindu Undivided Family (HUF), senior citizens, OCI, PIO, and Non Residential Indians (NRIs).
  2. A fixed deposit account can be opened by a minor of any age through his/her natural or legal guardian. Minors above the age of 10 years may be allowed to open and operate savings bank accounts independently, if they wish. 
  3. Any government or corporate, company, clubs,, societies, family trusts, proprietorship or commercial organization.

Documents Required for Fixed Deposit Account

Here’s a list of documents you need to open a FD account:

  1. Application form: Depending on the bank you choose to open the fixed deposit account in.

  2. Photograph: Passport size photographs of the individual who is applying for the fixed deposit account.

  3. Identity Proof: This can include your passport, driving licence, service identity card of state or central government, PAN card, or aadhar card.

  4. Address Proof: This can include your passport, driving licence,aadhaar card, water bill, telephone bill or even your electricity bill.

  5. KYC documents: To verify the “Know Your Customer” details of the applicant willing to open the fixed deposit account.

Insurance on Fixed Deposit

Fixed deposits are one of the safest investment options out there and for good reason. Whenever an investor deposits his/her money in a FD account, they must consider the risk of a bank declaring bankruptcy. This way they might risk losing the entire invested amount.

Every bank secures all the deposits made by account holders and investors including savings, fixed and recurring deposits. The bank deposits are secured by Deposit Insurance and Credit Guarantee Corporation (DICGC), a subsidiary of the Reserve Bank of India.

The amount of coverage is Rs. 5 lakhs as updated in the Union budget of 2020, and can be released only in the event of the failure of a bank. This five lakh includes the total principal amount and interest earned. 

In case, the amount deposited along with the interest was over Rs. 5 lakhs, the total deposit and interest are clubbed at not higher than Rs. 5 lakhs. This money will be repaid to the investor in the event of failure.

Loan on Fixed Deposit

If you are in need of urgent money, then you can easily get a loan against your FD. This is much better than doing a premature withdrawal or closing the account. 

Loan on Fixed deposit is a secured loan which you get by keeping your FD amount as the collateral and can go up to 90% to 95% of the deposit amount.

Fixed deposit as a collateral

Whenever a customer opts to take a loan against a fixed deposit, the financial institution keeps the customer’s FD as the collateral. Whenever you offer a collateral to take a loan, the loan becomes a secured loan. Secured loans draw a lower rate of interest as compared to other loans. In case the loanee is not able to repay the loan amount in the given time, the bank can easily procure it from the FD amount. Either way, this amount is settled at the time of maturity.

Eligibility for availing Loan against FD

  1. All standard fixed deposit holders are eligible for getting a loan against their FD. It is available to both individual and joint account holders.
  2. Minors are not eligible to avail a loan against FD.
  3. Tax saver FD holders are also not eligible to get a loan against FD. Their money is locked in for 5 years and can’t serve as a collateral for any financial institution to give a loan against. 

Benefit of availing a Loan against FD

  1. Lower interest rates compared to other types of loans like personal loan (0.5% – 2% above the applicable FD rate)
  2. No need to break FD and go for premature withdrawal thus suffering a loss of interest on FD
  3. No processing fees charged
  4. Can be availed against domestic as well as NRI FDs
  5. Can be repaid as a lump sum or in instalment (not later than FD tenure)

Differences Between Fixed Deposits and Recurring Deposits 

Here’s the list of 4 key differences between Fixed Deposit and Recurring Deposits:

Fixed Deposits

Recurring Deposits


Total investment is done in one go as only lump sum is deposited.

Recurring investments over a period of time in the form of small monthly sums.

Maturity tenure starts from 7 days to 10 years. 

Maturity tenure starts from 6 months to 10 years. 

Interest is earned on the whole lump sum amount hence, higher.

Interest is earned on periodic investments, hence lesser than FDs.

No capping on maximum deposit amount although it depends on the bank.

Maximum deposit amount capped at Rs. 15 lakh depending on the bank.



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