What is a Fixed Deposit (FD)?

A Fixed Deposit is a financial instrument where you deposit a lump sum with a bank or NBFC for a fixed tenure at a fixed interest rate. FDs are one of the safest investment options in India — your principal is guaranteed (up to ₹5 lakh per bank by DICGC insurance).

How FD Interest is Calculated

Most banks use compound interest for FDs:

Maturity = P × (1 + R/100)^T

Where: P = Deposit amount, R = Annual interest rate, T = Time in years.

Example Calculation

₹1,00,000 at 7% for 5 years:

• Maturity = 1,00,000 × (1.07)^5 = ₹1,40,255
• Interest earned = ₹40,255

FD Interest Rates (Typical)

• SBI: 2.9% – 7.0%
• HDFC: 3.0% – 7.4%
• ICICI: 3.0% – 7.25%
• Small Finance Banks: up to 8.5%

Senior citizens usually get 0.5% extra.

Types of FDs

• Regular FD — Fixed rate, fixed tenure
• Cumulative FD — Interest reinvested, paid at maturity
• Non-Cumulative FD — Interest paid monthly/quarterly
• Tax Saver FD — 5-year lock-in, tax deduction under 80C

FD vs Other Options

FDs are safest but returns are modest. For higher returns, consider debt mutual funds, PPF, or NPS. Always keep emergency funds in FDs for liquidity.

Why Use Our FD Calculator?

Compare FD returns across different rates and tenures instantly. Plan your savings goals with clear maturity projections.