FD Calculator
Calculate Fixed Deposit maturity amount and total interest earned. Works for any bank and tenure.
Frequently Asked Questions
What is the highest FD interest rate in India 2026?▼
Top FD rates April 2026: HDFC Bank 7.4% (15-18 months), ICICI Bank 7.4%, SBI 7.1% (1-2 years), Axis Bank 7.25%. Small finance banks like Jana, Ujjivan offer 8-9% with higher risk. Senior citizens get 0.25-0.50% extra on all banks.
Is FD interest taxable in India?▼
Yes, FD interest is added to your income and taxed at your slab rate. Banks deduct TDS at 10% if annual interest exceeds ₹40,000 (₹50,000 for senior citizens). In your 30% tax bracket, effective FD return on 7% FD = only 4.9%.
FD vs PPF which is better for tax saving?▼
PPF is better for tax saving: interest is completely tax-free (EEE), 80C deduction available, current rate 7.1%. FD interest is taxable. But PPF has 15-year lock-in vs FD's flexible tenure. For tax-saving + liquidity, prefer PPF for long-term and FD for short-term goals.
What is a Fixed Deposit (FD)?
A Fixed Deposit (FD) is a financial instrument provided by banks and NBFCs that offers investors a higher rate of interest than a regular savings account, until the given maturity date. FDs are considered one of the safest investment options in India as they are not subject to market risks. The principal amount and interest are guaranteed by the bank.
FD Interest Rates 2026 — Top Banks Comparison
SBI FD rates 2026: 1-year 6.8%, 2-year 7.0%, 3-year 6.75%, 5-year 6.5%. HDFC Bank: 1-year 6.6%, 2-year 7.25%, 3-year 7.15%, 5-year 7.0%. ICICI Bank: 1-year 6.7%, 2-year 7.0%, 5-year 6.9%. Senior citizens get an additional 0.25-0.5% interest on all FD tenures across most banks. Post Office Time Deposit: 1-year 6.9%, 5-year 7.5% — highest guaranteed rate.
FD vs Savings Account — When to Choose FD
A savings account typically offers 2.5-4% interest while FDs give 6.5-7.5% — nearly double. Choose an FD when you have money you won't need for 6 months to 5 years. The penalty for premature withdrawal is typically 0.5-1% of the interest rate, so choose the tenure carefully. For emergency funds, keep 3-6 months expenses in savings account and rest in FD for better returns.
Tax on FD Interest — What You Need to Know
FD interest is fully taxable as per your income tax slab — unlike PPF or ELSS which have tax benefits. TDS is deducted at 10% if interest exceeds ₹40,000/year (₹50,000 for senior citizens). Submit Form 15G (non-senior, income below taxable limit) or Form 15H (senior citizens) to avoid TDS. Even with TDS deducted, you must declare FD interest in your ITR. Post office FD interest is also taxable.
Frequently Asked Questions
Which bank gives highest FD interest rate in 2026?▼
For general public: Small Finance Banks like Unity SFB, AU SFB, ESAF offer 8-9% but carry slightly higher risk. Among large banks: HDFC at 7.25% for 2 years, and Post Office 5-year TD at 7.5% are the best. For senior citizens: Post Office at 8.0% (5-year) is the highest risk-free option.
Is FD interest taxable?▼
Yes. FD interest is added to your annual income and taxed as per your slab. At 30% tax slab, a 7% FD effectively gives only 4.9% post-tax. This is why PPF (7.1% tax-free) is often better than FD for those in higher slabs.
Can I break FD before maturity?▼
Yes. Banks allow premature withdrawal but charge a penalty of 0.5-1% on the applicable interest rate. Some banks have no-penalty FDs for senior citizens. Ideally, open multiple small FDs instead of one large FD so you can break only what you need.