What is a Fixed Deposit (FD)?

A Fixed Deposit (FD) is a financial instrument offered by banks and non-banking financial companies (NBFCs) where investors deposit a lump sum amount for a fixed tenure at a predetermined interest rate. It offers guaranteed returns and is considered a low-risk investment.

How is FD interest calculated in India?

In India, FD interest for tenures of 6 months and above is generally compounded quarterly. The formula used is: A = P(1 + r/n)^(n*t). For tenures shorter than 6 months, simple interest is applied: A = P(1 + r*t).

Do senior citizens get higher FD interest rates?

Yes. Most Indian banks offer an additional interest rate premium of 0.50% to 0.75% per annum to senior citizens (individuals aged 60 years and above) compared to general regular depositors.

Fixed Deposit (FD) Calculator Online - Compare Indian Bank Rates

Fixed Deposit (FD) Calculator

Calculate your maturity value and interest earnings with quarterly compounding.

Total Investment (₹)

₹1K₹50L₹1Cr

Rate of Interest (% p.a.)

1%8%15%

Tenure

1 Yr13 Yrs25 Yrs

Senior Citizen RatesApply additional interest premium (+0.50% p.a.)

Compounding Frequency

Maturity Details

Maturity Amount₹1,41,762

Invested Principal₹1,00,000

Est. Interest Earned₹41,762

29.5%Interest

Compare Top Indian Bank FD Rates (2026)

Select any rate preset below to instantly load it into the calculator.

SBIState Bank of India

Regular6.80%

Senior7.30%

HDFCHDFC Bank

Regular7.25%

Senior7.75%

ICICIICICI Bank

Regular7.20%

Senior7.70%

AXISAxis Bank

Regular7.20%

Senior7.75%

PNBPunjab National Bank

Regular7.25%

Senior7.75%

Understanding Fixed Deposits (FDs) in India

A Fixed Deposit (FD) is one of the most popular and secure saving instruments in India. By locking in a lump sum amount for a specific tenure, you earn a guaranteed rate of interest that is immune to market fluctuations.

How to Use the Arcdome FD Calculator

Investment Amount: Enter the principal amount you wish to invest (ranging from ₹1,000 up to ₹1 Crore).
Interest Rate: Input the annual interest rate. You can click on any of the top Indian bank cards (like SBI or HDFC) below the calculator to instantly apply their current market rates.
Tenure: Choose the duration of your deposit in Years, Months, or Days.
Senior Citizen Toggle: If you are 60 years or older, toggle this switch to automatically apply the +0.50% interest premium.
Compounding Interval: Select how often interest is calculated. Quarterly compounding is the default standard for Indian bank FDs.

The Mathematics Behind FD Calculations

For FDs with a tenure of 6 months and above, banks compound interest quarterly. The compound interest formula is:

A = P × (1 + r/n)^{(n × t)}

Where:

A: Maturity Amount
P: Principal Invested Amount
r: Annual Interest Rate (in decimal form)
n: Number of compounding periods per year (n = 4 for quarterly compounding)
t: Total tenure in years

Tax Implications on FD Returns (TDS)

The interest earned on Fixed Deposits is taxable under "Income from Other Sources". If the total interest earned across all your FDs in a bank exceeds ₹40,000 in a financial year (₹50,000 for senior citizens), the bank deducts Tax Deducted at Source (TDS) at 10% (if PAN is provided) or 20% (without PAN). Depositors can submit Form 15G or Form 15H to avoid TDS if their total taxable income is below the taxable threshold.