FD Calculator India

FD interest rates in India vary by bank and tenure. Major banks offer 6.5–8.1% for regular citizens and 7–8.6% for senior citizens on 1–3 year FDs. Small finance banks often offer higher rates up to 8.5%. RBI repo rate changes influence FD rates over time.

FD interest in India is typically compounded quarterly. Formula: A = P × (1 + r/n)^(n×t), where P is principal, r is annual rate, n is compounding frequency (4 for quarterly), and t is time in years. The difference between simple and compound interest grows significantly for longer tenures.

Yes, FD interest is fully taxable as 'Income from Other Sources' at your slab rate. Banks deduct TDS at 10% if interest exceeds ₹40,000 per year (₹50,000 for senior citizens). You can submit Form 15G (below 60) or 15H (senior citizens) to avoid TDS if your total income is below the taxable limit.

DICGC insures bank deposits up to ₹5 lakh per depositor per bank across all branches. This covers savings, FD, and recurring deposits combined. For higher amounts, consider spreading across multiple banks.

Yes, most banks allow premature FD withdrawal, but with a penalty of 0.5–1% deducted from the applicable rate. Some banks have lock-in periods. Tax-saving FDs (Section 80C) have a mandatory 5-year lock-in and cannot be broken prematurely.

A 5-year tax-saving FD allows you to claim deduction up to ₹1.5 lakh under Section 80C. It has a mandatory 5-year lock-in period — premature withdrawal is not allowed. Interest earned is still taxable. You cannot take a loan against a tax-saving FD.

Cumulative FD reinvests interest and pays maturity amount at the end — better for wealth creation. Non-cumulative FD pays interest periodically — better for regular income needs. For long tenures, cumulative FDs earn significantly more due to compounding.