What is the minimum FD amount in India for FY 2025-26?

Most banks accept FDs from ₹1,000 onwards; post office time deposits start at ₹100. Specific minimums vary by bank — check before opening.

What is the current FD interest rate?

For FY 2025-26, retail FD rates typically range from 6% to 7.75% for general depositors and 6.5% to 8.25% for senior citizens, depending on bank and tenure.

Can I prematurely break an FD?

Yes. Most banks allow premature withdrawal with a penalty of 0.5–1% on the applicable rate. Tax-saver 5-year FDs have a lock-in and cannot be withdrawn early.

How does compound vs simple interest affect maturity?

Quarterly compounding earns interest-on-interest, producing a higher maturity than simple interest of the same rate. Most Indian bank FDs use quarterly compounding by default.

FD Calculator India 2025 - Fixed Deposit Maturity

Calculate FD Maturity

Principal Amount (₹)

Min ₹1,000 (bank) or ₹100 (post office).

Annual Interest Rate (%)

Typical range 4–8% in FY 2025-26.

Tenure (Years)

Tenure (Months)

Interest Type

Simple usually applies for tenures under 6 months.

What is a Fixed Deposit?

A Fixed Deposit (FD) is a deposit product offered by banks, NBFCs, and post offices that locks in your money for a fixed term at a guaranteed interest rate. It is one of the most popular low-risk savings options in India because the principal is secure (insured up to ₹5 lakh by DICGC for bank FDs) and the return is contractually fixed at the time of booking.

FDs are ideal for emergency funds, short-term goals (6 months to 3 years), or conservative investors who prefer assured returns over market-linked products. Most banks compound interest quarterly; cumulative FDs reinvest interest until maturity, while non-cumulative FDs pay periodic interest (monthly, quarterly, or annually).

Key Features at a Glance

Tenure: 7 days to 10 years.
Interest: Typically 6%–7.75% for general; senior citizens get 0.25–0.75% extra.
Compounding: Quarterly (standard) — bank pays interest on interest.
Safety: Insured by DICGC up to ₹5 lakh per depositor per bank.
Liquidity: Premature withdrawal allowed with a 0.5–1% penalty (except 5-year tax-saver FDs).
Taxation: Interest fully taxable; TDS at 10% above ₹40,000 (₹50,000 for senior citizens).
Tax-saver FD: 5-year lock-in, qualifies for ₹1.5 lakh deduction under Section 80C.

How the Calculation Works

Compound (quarterly) formula: A = P × (1 + r/4)^4t

Simple interest formula: A = P × (1 + r × t)

Where A = maturity, P = principal, r = annual rate, t = tenure in years.

Worked example: A ₹1,00,000 FD at 6% p.a. for 1 year with quarterly compounding matures to ~₹1,06,136 — earning ₹6,136 in interest, slightly more than the ₹6,000 you'd get with simple interest.

Sample FD Maturity Table (1 Year)

Principal (₹)	Rate	Compound (₹)	Simple (₹)
1,00,000	6.0%	1,06,136	1,06,000
1,00,000	7.0%	1,07,186	1,07,000
5,00,000	7.0%	5,35,929	5,35,000
5,00,000	7.5%	5,38,564	5,37,500
10,00,000	8.0%	10,82,432	10,80,000

Frequently Asked Questions

How is FD maturity calculated?

Most banks use the quarterly-compounded formula A = P(1 + r/4)^4t. For tenures under 6 months, simple interest is generally applied.

What is the minimum FD amount?

Banks typically start at ₹1,000; post office time deposits begin at ₹100. Online FDs may have higher minimums.

Is FD interest taxable?

Yes — taxable at your income-tax slab rate. TDS at 10% applies if annual interest exceeds ₹40,000 (₹50,000 for senior citizens).

Can I save tax with an FD?

Yes. A 5-year tax-saver FD qualifies for Section 80C deduction up to ₹1.5 lakh, but it has a 5-year lock-in and no premature withdrawal.

What happens on premature withdrawal?

Banks usually deduct 0.5–1% from the applicable rate. The effective rate is the lesser of the booking rate or the card rate for the actual tenure.

Do senior citizens get higher rates?

Yes. Most banks offer 0.25–0.75% additional p.a. to senior citizens (age 60+).

Fixed Deposit Calculator

Calculate FD Maturity

What is a Fixed Deposit?

Key Features at a Glance

How the Calculation Works

Sample FD Maturity Table (1 Year)

Frequently Asked Questions

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