Fixed Deposit (FD) Calculator India - Cumulative and Non-Cumulative

FD Calculator India - Compound Interest + TDS

Calculate Fixed Deposit maturity with quarterly compounding. Cumulative vs non-cumulative. Senior citizen premium, TDS thresholds.

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Source: hdfcbank.com fixed deposit rates. Rates change without prior notice; verify on value date with your institution.

₹
₹1,000₹1,00,00,000
Annual Rate (override)6.50%
3%9%
Tenure5.0 years
6 mo10 yr

Most Indian banks: quarterly

Cumulative: interest reinvested. Non-cumulative: interest paid out periodically; principal returned at end.

Principal
₹1,00,000
Maturity Amount
₹1,38,042
Interest Earned
₹38,042
ⓘ
Peak annual interest (year-5 of this FD, the highest accrual due to back-loaded compounding): ₹8,620. Average across tenure: ₹7,608. Peak year is below the Section 194A TDS threshold of ₹50,000 for general depositors; no TDS expected at this institution alone. Section 194A, Income-tax Act, 1961, as amended by the Finance Act 2025 (Section 58), effective 1 April 2025. Calculator does NOT compute your final tax - per-FY interest depends on aggregate across all institutions and your slab rate.
72% / 28%principal / interest
Principal (72%)
Interest (28%)
ℹ️
Disclaimer: Mutual fund investments are subject to market risks.
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TL;DR

Calculate Fixed Deposit maturity for cumulative (interest reinvested) or non-cumulative (interest paid out periodically) deposits using the standard compound-interest formula. Compare bank FDs (6.45-6.50%) vs Post Office 5-year TD (7.50%) with effective dates per preset. Senior premium of +0.50% applies to bank FDs only - Post Office schemes have a uniform rate for all citizens. TDS info per Section 194A as amended by Finance Act 2025 (Rs 50K general / Rs 1L senior threshold). Bank rates change without prior notice; verify on the value date.

Quick Facts

MathCumulative: A = P x (1 + r/n)^(n*t). Non-cumulative: I = P x r x t (simple interest paid out periodically; principal returned at end).
Compounding defaultQuarterly - the standard convention across SBI / HDFC / ICICI / Axis. Tool also supports monthly, half-yearly, annual.
Bank FD rates (May 2026)SBI 6.40%, HDFC 6.50%, ICICI 6.50%, Axis 6.45% (5-year). Bank rates change without prior notice.
Post Office 5-year TD7.50% (DEA Q1 FY 2026-27, unchanged from Q4; next review 30 Jun 2026)
Senior citizen premium+0.50% on bank FDs (typical). NOT applicable to Post Office TD - rate is uniform per India Post rules.
Cumulative vs non-cumulativeCumulative reinvests interest (compound). Non-cumulative pays interest out periodically (simple interest on principal). Cumulative gives a larger final amount.
RBI repo rate5.25% (May 2026, neutral stance) - bank FD spreads typically 100-150 bps over repo
TDS threshold (Section 194A)Rs 50,000 general / Rs 1,00,000 senior - per Finance Act 2025 amendment effective 1 April 2025. Rate 10% with PAN, 20% without.
Where computation happens100% in your browser; no upload, no signup, no PII collected
Companion toolUse RD Calculator for monthly recurring deposits with quarterly compounding

What is a Fixed Deposit (FD)?

A Fixed Deposit is a savings instrument where you place a single lump sum with a bank or the Post Office for a fixed tenure (typically 7 days to 10 years), earning a pre-agreed interest rate. Unlike an RD which takes monthly contributions, an FD takes the full amount upfront. FDs come in two flavours: cumulative (interest is reinvested every compounding period and paid at maturity) and non-cumulative (interest is paid out monthly, quarterly, half-yearly, or annually based on your preference, and the original principal is returned at the end).

FD safety in the Indian context comes in two flavours: Post Office Time Deposits are sovereign-backed (full Government of India guarantee, no upper limit), while bank FDs are protected only up to Rs 5 lakh per depositor per bank under DICGC insurance - amounts above that retain bank credit and concentration risk. For deposits exceeding Rs 5 lakh, splitting across multiple banks (or topping up via Post Office) reduces single-counterparty exposure. Returns are predictable across both, unlike mutual funds or equities. The trade-off is that real returns (after inflation and tax) are typically lower than well-diversified market-linked instruments over long horizons.

How is FD Interest Calculated?

Cumulative FD uses standard compound interest: each compounding period, interest is added to the principal, and the next period's interest is computed on the larger balance. The closed form:

A = P x (1 + r/n)^(n * t)
  • P = principal (lump sum invested)
  • r = annual interest rate as a fraction (e.g. 6.50% = 0.065)
  • n = compounding frequency per year (4 for quarterly, 12 monthly, 2 half-yearly, 1 annual)
  • t = tenure in years (can be fractional, e.g. 0.5 for 6 months)
  • A = maturity amount

For a non-cumulative FD, interest is paid out at the chosen frequency rather than reinvested, so the principal stays constant. Total interest over the tenure = P x r x t (simple interest formula). The principal is returned at maturity. Cumulative FDs always produce a larger final amount than non-cumulative FDs at the same nominal rate, because the reinvested interest itself earns interest.

Worked Examples (Verified via Calculator)

Same Rs 1,00,000 principal across modes / institutions, 5-year tenure, quarterly compounding (unless noted). Numbers below are computed via the calculator above.

ScenarioEffective rateMaturityInterestAnnual interest (TDS context)
Bank cumulative quarterly6.50%Rs 1,38,042Rs 38,042Rs 7,608
Bank cumulative monthly6.50%Rs 1,38,282Rs 38,282Rs 7,656
Bank cumulative senior (+0.50%)7.00%Rs 1,41,478Rs 41,478Rs 8,296
Bank non-cumulative6.50%Rs 1,00,000 (P returned)Rs 32,500Rs 6,500
Post Office 5-yr TD7.50%Rs 1,44,995Rs 44,995Rs 8,999

At Rs 1,00,000 principal these annual interest figures are well below the current Section 194A TDS threshold (Rs 50,000 general / Rs 1,00,000 senior, raised by the Finance Act 2025 effective 1 April 2025). TDS becomes relevant once your aggregate per-FY interest from a single bank crosses the threshold. Important for cumulative FDs: interest is back-loaded due to compounding, so the year-N accrual is higher than the tenure average. Example: Rs 6,00,000 cumulative FD at 6.50% quarterly for 5 years averages ~Rs 45,650/year (below Rs 50K general threshold) but year 5 alone accrues ~Rs 51,581 - which DOES cross the general threshold and triggers TDS in that year. The TDS callout in the calculator above uses the peak (year-N) accrual, not the average, so it does not under-report this risk.

Notice the cumulative-vs-non-cumulative gap: at the same 6.50% rate over 5 years, cumulative builds Rs 38,042 of interest vs Rs 32,500 simple interest for non-cumulative - a 17% larger return for the cumulative version because reinvested interest itself earns interest. Non-cumulative is useful if you need the periodic income (retirees, fixed-income planners), but cumulative is the right choice if you want the maximum compounded return at maturity.

Tax on FD Interest (TDS + slab)

FD interest is fully taxable in India. The interest you earn is added to your total income each financial year and taxed at your slab rate. Two layers, identical to RD treatment:

  • TDS at source (Section 194A): the bank deducts 10% TDS if your annual interest from that bank exceeds Rs 50,000 (general) or Rs 1,00,000 (senior citizens 60+). These thresholds were raised by the Finance Act 2025, effective 1 April 2025 (previously Rs 40,000 / Rs 50,000). TDS is 20% if PAN is not furnished. Submit Form 15G (general) or 15H (senior) at the start of the FY if your total income is below taxable limit to avoid TDS deduction.
  • Slab-rate tax at filing: regardless of TDS, your full FD interest is reported under "Income from Other Sources" and taxed at your slab. TDS already deducted is credited against your final liability when you file your ITR.

Special case: 5-year tax-saving FD. Bank FDs with a 5-year lock-in qualify for Section 80C deduction (up to Rs 1.5 lakh per FY along with PPF, ELSS, EPF and other 80C instruments) under the OLD tax regime. The 80C deduction is on the deposit amount; the interest earned is still fully taxable and TDS rules above still apply. The new tax regime forfeits 80C entirely. This calculator does NOT distinguish tax-saver FDs - they use the same compound interest math; the tax treatment differs only at the deduction stage.

Premature Withdrawal & Loan Against FD

Premature withdrawal: most banks deduct 0.50-1.00% from the contracted rate as penalty; the actual rate paid is the lower of (the rate originally booked) and (the rate applicable for the period the deposit actually ran), minus the penalty. Some senior-citizen schemes waive the penalty. Loan against FD: typically 75-90% of the FD value at a small spread (1-2%) over the FD rate; cheaper than personal loans and avoids breaking the deposit. Tax-saver FDs (5-year lock-in) cannot be broken prematurely or used as loan collateral. None of this is computed here - the calculator assumes the deposit runs to full maturity.

Sources & References

Last reviewed in May 2026. Post Office TD rate verified against DEA Q1 FY 2026-27 memo. Bank rates verified against each bank's interest-rate page on the dates shown in the preset dropdown. Bank rates change without prior notice; ascertain the rate on your value date with the institution before depositing. Re-verify Post Office rate after each DEA quarterly review (next: 30 Jun 2026).

Looking for monthly contributions instead of a lump sum? Use the RD Calculator for Recurring Deposits with quarterly compounding. For tax-free long-term savings under Section 80C, see PPF Calculator (15-year, EEE status). For market-linked alternatives that may beat FD returns over 7+ years, compare with SIP Calculator. For physical asset diversification, see Gold Calculator.

Frequently Asked Questions

What is a Fixed Deposit (FD)?+
A Fixed Deposit is a savings instrument where you place a single lump sum with a bank or the Post Office for a fixed tenure (typically 7 days to 10 years), earning a pre-agreed interest rate. Two flavours: cumulative (interest reinvested every compounding period and paid at maturity) and non-cumulative (interest paid out monthly, quarterly, half-yearly, or annually; principal returned at end). Bank FDs are insured up to Rs 5 lakh per depositor per bank under DICGC; Post Office FDs (called Time Deposits or TDs) are sovereign-backed.
How is FD interest calculated?+
Cumulative FDs use standard compound interest: A = P x (1 + r/n)^(n*t), where P is principal, r is annual rate as fraction (e.g. 0.065 for 6.5%), n is compounding frequency per year (4 for quarterly, the Indian standard), and t is tenure in years. For Rs 1,00,000 at 6.50% quarterly for 5 years: maturity = Rs 1,38,042. Non-cumulative FDs pay interest periodically without reinvestment, so total interest = P x r x t (simple interest formula); principal is returned at maturity. Cumulative always gives a larger final amount than non-cumulative at the same nominal rate.
What's the current FD interest rate in 2026?+
As of May 2026: Bank 5-year FDs - SBI 6.40% (revised 15 Dec 2025), HDFC 6.50% (revised 6 Mar 2026), ICICI 6.50% (revised 8 Apr 2026), Axis 6.45% (revised 7 Apr 2026). Senior citizens get +0.50% at most banks. Post Office 5-year Time Deposit: 7.50% (DEA Q1 FY 2026-27, unchanged; next review 30 Jun 2026). Bank rates have eased through 2025-2026 alongside RBI repo cuts (current repo 5.25%). Bank rates can change without prior notice; verify on your value date.
What is the difference between cumulative and non-cumulative FD?+
Cumulative FD: interest is reinvested every compounding period. The full maturity amount (principal + accumulated interest) is paid at the end. Best for wealth accumulation - compound interest works in your favour. Non-cumulative FD: interest is paid out at chosen frequency (monthly/quarterly/half-yearly/annual) rather than reinvested, so the principal stays constant. Total interest over tenure = P x r x t (simple interest). Useful for retirees or anyone needing periodic income. At Rs 1,00,000 / 6.50% / 5 years, cumulative builds Rs 38,042 of interest vs Rs 32,500 simple interest for non-cumulative - 17% larger return for cumulative because reinvested interest itself earns interest.
Do senior citizens get a higher FD rate?+
Yes for bank FDs - typically +0.50% above the standard rate (some banks vary +0.25% to +0.75%). For example HDFC standard 5-year FD 6.50%, senior citizen 7.00%. NO for Post Office Time Deposit - the rate is uniform across all citizens per India Post scheme rules. Senior citizens (60+) should also check the Senior Citizen Savings Scheme (SCSS) which currently pays 8.20% per annum, higher than any bank FD. Eligibility for senior premium: usually age 60 on the date of deposit; verify with the bank.
How to calculate TDS on FD?+
TDS on FD interest is governed by Section 194A. Step 1: estimate your annual interest from the bank (use the calculator above; for cumulative FDs the per-FY interest grows year over year due to compounding). Step 2: aggregate across ALL your FDs and RDs at the SAME bank (TDS threshold is per institution, not per deposit). Step 3: if aggregate annual interest exceeds Rs 50,000 (general) or Rs 1,00,000 (senior citizen, raised by Finance Act 2025 effective 1 April 2025), the bank deducts 10% TDS at source if you've provided PAN; 20% if not. Step 4: TDS deducted is credited against your final tax liability when you file your ITR. To avoid TDS deduction (when your total income is below taxable limit), submit Form 15G (general) or 15H (senior) at the start of each FY.
What's the difference between FD and RD?+
FD takes a single lump sum upfront (e.g. Rs 1 lakh deposited on day 1 for 5 years). RD takes monthly installments over the tenure (e.g. Rs 5,000/month for 5 years = Rs 3 lakh deposited gradually). FD is useful when you already have a lump sum (bonus, inheritance, sale proceeds); RD is useful for disciplined monthly accumulation from salary. FD typically gives a slightly higher effective return on the same total amount because the full principal earns interest from day 1, while RD's later installments only earn interest for the remaining months. Both use compound interest with quarterly compounding standard across Indian banks and Post Office.
Are tax-saving FDs (5-year) treated differently?+
Yes. Bank FDs with a 5-year lock-in qualify for Section 80C deduction (up to Rs 1.5 lakh per FY along with PPF, ELSS, EPF and other 80C instruments) under the OLD tax regime. The 80C deduction is on the deposit amount; the interest earned is still fully taxable each year and TDS rules apply normally. The new tax regime forfeits 80C entirely, so tax-saver FDs lose their primary advantage if you're on the new regime. Tax-saver FDs cannot be broken prematurely or used as loan collateral. The calculator above uses the same compound interest math regardless of tax-saver status - the tax treatment differs only at the deduction stage.