Compare 13 banks, calculate returns with 2025 rates
Current Rate: 6.50% p.a.
| Quarter | Months | Interest Earned | Total Value |
|---|---|---|---|
| Q1 | 3 | ₹1,625 | ₹1.02 L |
| Q2 | 6 | ₹3,276 | ₹1.03 L |
| Q3 | 9 | ₹4,955 | ₹1.05 L |
| Q4 | 12 | ₹6,660 | ₹1.07 L |
A Fixed Deposit (FD) is a secure investment where you deposit money with a bank/NBFC for a fixed tenure at a predetermined interest rate. It offers guaranteed returns, making it one of the safest investment options in India.
Our advanced calculator helps you compare 13 major banks, calculate maturity amount with latest 2025 rates, shows senior citizen premiums, tax impact, FD ladder strategy, and even premature withdrawal penalties.
| Bank/NBFC | General Rate | Senior Citizen | Best Tenure |
|---|---|---|---|
| Bajaj Finance 🏆 | 8.60% | 8.85% | 33 months |
| Shriram Finance | 8.51% | 8.76% | 24-36 months |
| Mahindra Finance | 8.00% | 8.25% | 18-36 months |
| IndusInd Bank | 7.75% | 8.25% | 2-3 years |
| Axis Bank | 7.00% | 7.75% | 2-3 years |
| HDFC Bank | 7.00% | 7.50% | 2-3 years |
| ICICI Bank | 7.00% | 7.50% | 1-2 years |
| SBI | 6.50% | 7.50% | 2-3 years |
Note: Rates are indicative as of November 2025 and subject to change. NBFCs typically offer higher rates than banks but carry slightly higher risk.
A = Maturity amount
P = Principal deposit
r = Annual interest rate
n = Compounding frequency (4 for quarterly)
t = Time in years
Example: ₹1 lakh at 7% for 3 years
A = 1,00,000(1 + 0.07/4)^(4×3) = ₹1,23,047
SI = Simple interest
P = Principal deposit
r = Annual interest rate (decimal)
t = Time in years
Example: ₹1 lakh at 7% for 3 years
Monthly payout = (1,00,000 × 0.07 × 0.85) / 12 = ₹496/month
Total = ₹1,17,833 (lower than cumulative)
Best for: Wealth creation, lump sum needs
Interest compounds quarterly and paid at maturity. Highest returns. Minimum tenure 7 days, maximum 10 years.
Best for: Retirees, regular income seekers
Interest paid monthly but at discounted rate (85% of cumulative rate). Principal returned at maturity.
Best for: Age 60+ investors
Extra 0.25-0.75% interest. Best rates from Bajaj Finance (8.85%) and Shriram Finance (8.76%) for seniors.
Best for: Tax deduction up to ₹1.5L
5-year lock-in, eligible for 80C deduction. Rates similar to regular FD but interest is taxable. SBI offers 6.5%.
Best for: Emergency liquidity + FD returns
Linked to savings account. Excess amount auto-converted to FD. Break only required amount when needed.
Best for: Higher returns, moderate risk
Offered by companies (Bajaj, Shriram, Mahindra). Higher rates (8-9%) but check credit rating (AAA/AA).
| Investment | Returns | Tax Benefit | Liquidity | Risk |
|---|---|---|---|---|
| Fixed Deposit | 6.5-8.6% | Taxable | Low (penalty) | Very Low |
| PPF (Public Provident Fund) | 7.1% | Tax-free (EEE) | Very Low (15Y) | None |
| NSC (National Savings Certificate) | 7.7% | 80C deduction | None (5Y lock) | None |
| Debt Mutual Funds | 7-9% | Indexation (3Y+) | High | Low-Medium |
| Savings Account | 2.5-4% | Up to ₹10K | Instant | None |
Scenario: ₹10 lakh FD at 7% for 1 year
Interest earned: ₹70,000
TDS deducted (10%): ₹7,000
In 30% tax bracket:
Tax liability (30%): ₹21,000
Additional tax to pay: ₹14,000
Post-tax return: 4.9% (not 7%)
Get 10-15% more returns than monthly payout due to quarterly compounding.
If 60+, claim extra 0.25-0.75% premium. On ₹10L, saves ₹2,500-7,500/year.
NBFCs offer 1-2% higher rates. Check AAA/AA ratings for safety.
Most banks offer highest rates for 2-3 year FDs. Sweet spot for returns.
Split across multiple tenures for liquidity + benefit from rate changes.
If income below taxable limit, avoid TDS and get full interest.
Penalty of 0.5-1% reduces returns. Use sweep-in FD for emergencies.
Invest during high-rate periods. RBI rate hikes increase FD rates.
Bank FDs insured up to ₹5 lakh per bank by DICGC. Spread if more.
Enable auto-renewal but review rates every maturity. May get better rates elsewhere.
FD interest is calculated using compound interest formula: A = P(1 + r/n)^(nt), where P = principal, r = annual interest rate, n = compounding frequency (usually 4 for quarterly), t = time in years. For example, ₹1 lakh at 7% for 1 year with quarterly compounding = ₹1,07,186. Most banks use quarterly compounding for cumulative FDs.
Current FD rates (2025): SBI 6.5-7.5%, HDFC Bank 7-7.5%, ICICI Bank 7-7.5%, Axis Bank 7-7.75%, Bajaj Finance 8.6-8.85% (highest for NBFCs). Senior citizens get 0.25-0.75% extra. Small finance banks offer up to 9%. Rates vary by tenure - typically highest for 2-3 year deposits. Check our calculator for real-time comparisons.
Cumulative FD: Interest is compounded and paid at maturity, giving highest returns. Best for wealth creation. Non-cumulative FD: Interest is paid out monthly/quarterly/annually, giving regular income but lower total returns (10-15% less). Best for retirees needing regular income. Our calculator shows both options with exact payout amounts.
FD interest is fully taxable as per your income tax slab. No exemption limit. Banks deduct 10% TDS if interest exceeds ₹40,000/year (₹50,000 for senior citizens). For 30% tax slab, effective return on 7% FD is only 4.9%. Use our tax calculator to see post-tax returns. Consider tax-free alternatives like PPF (7.1% tax-free) for better tax efficiency.
Yes, premature withdrawal is allowed but attracts penalty. Banks typically charge 0.5-1% penalty on applicable rate. Interest is paid at reduced rate for actual deposit period. For example, if you withdraw 2-year FD after 1 year, you get 1-year FD rate minus penalty. Our premature withdrawal calculator shows exact loss. Avoid unless emergency.
FD laddering means splitting investment across multiple tenures (1Y, 2Y, 3Y, 4Y, 5Y) instead of one long-term FD. Benefits: (1) Liquidity - one FD matures every year, (2) Flexibility - reinvest at current rates, (3) Average higher returns - benefit from varying rate structures. Our calculator shows optimal ladder strategy with projected returns for your amount.