FD & RD Calculator
FD & RD Calculator India 2026
Calculate Fixed Deposit and Recurring Deposit Maturity Amounts with Interest
Fixed Deposit (FD): Fixed Deposit (FD) is a financial instrument where you deposit a lumpsum amount with a bank or financial institution for a fixed tenure at a predetermined interest rate. FDs offer guaranteed returns with interest rates ranging from 6.5% to 7.5% for general citizens (higher for seniors). Interest can be received monthly, quarterly, or at maturity (cumulative). FDs are covered under DICGC insurance up to Rs 5 lakh per bank per depositor.
Source: Reserve Bank of India (RBI) - Deposit Insurance
Recurring Deposit (RD): Recurring Deposit (RD) is a savings instrument where you deposit a fixed amount every month for a predetermined period (6 months to 10 years) at a fixed interest rate. RD helps build a savings habit and offers guaranteed returns similar to FDs. The interest rate typically ranges from 6.0% to 7.0%. Unlike FDs, RD investments are made gradually, making it ideal for salaried individuals with regular monthly savings.
Source: Reserve Bank of India (RBI)
📊 FD & RD Statistics India 2025-26
Fixed Deposit Calculator
Calculate your Fixed Deposit maturity amount with compound interest. Choose quarterly compounding for maximum returns.
Recurring Deposit Calculator
Calculate your Recurring Deposit maturity amount based on monthly deposits. RD is perfect for building a savings habit with guaranteed returns.
FD Returns Summary
| Particulars | Amount |
| Principal Invested | ₹1,00,000 |
| Total Interest Earned | ₹42,576 |
| Maturity Amount | ₹1,42,576 |
| Effective Annual Yield | 7.39% p.a. |
FD vs RD Comparison
| Feature | Fixed Deposit (FD) | Recurring Deposit (RD) |
|---|---|---|
| Investment Type | One-time lumpsum | Monthly deposits |
| Minimum Amount | Rs 1,000 | Rs 100 (Rs 500 in most banks) |
| Tenure | 7 days to 10 years | 6 months to 10 years |
| Interest Rate | 6.5% - 7.5% | 6.0% - 7.0% |
| Interest Payout Options | Monthly, Quarterly, At Maturity | At Maturity only |
| TDS Deduction | Yes, above Rs 40,000/year | No automatic TDS |
| Premature Withdrawal | Allowed with penalty (0.5-1%) | Allowed with penalty |
| Best For | Lumpsum investment, regular income | Building savings habit |
FD & RD Calculator: Key Information
What is a Fixed Deposit (FD)?
A Fixed Deposit is a one-time lumpsum investment where you deposit a specific amount with a bank for a predetermined tenure ranging from 7 days to 10 years. The interest rate is fixed at the time of booking and remains constant throughout the tenure, regardless of market fluctuations. FD interest rates in India currently range from 6.5% to 7.5% for general citizens, with senior citizens enjoying an additional 0.50% rate benefit.
The power of compounding makes FDs particularly attractive for long-term investments. With quarterly compounding (the most common frequency in Indian banks), a Rs 1 lakh FD at 7% for 5 years grows to approximately Rs 1.42 lakh. This compounding effect means your interest earns additional interest, significantly boosting your final returns compared to simple interest calculations.
What is a Recurring Deposit (RD)?
A Recurring Deposit allows you to invest a fixed amount every month for a set period, typically ranging from 6 months to 10 years. RD is ideal for salaried individuals who want to build savings systematically. Each monthly deposit earns interest from the date of deposit until maturity, with the first deposit earning the maximum interest and the last deposit earning only one month's interest.
RD interest rates are generally 0.25% to 0.50% lower than FD rates for the same tenure, as banks prefer lumpsum deposits. However, the flexibility of monthly investments makes RDs perfect for building a corpus gradually. A monthly RD of Rs 10,000 for 5 years at 6.7% yields a maturity amount of approximately Rs 7.15 lakh.
Interest Calculation Methods
FD interest is calculated using the compound interest formula: A = P(1 + r/n)^(nt), where P is the principal, r is the annual interest rate, n is the compounding frequency, and t is the tenure in years. Quarterly compounding (n=4) is most common in Indian banks, though monthly compounding offers marginally higher returns.
RD interest calculation is more complex, as each monthly deposit has a different remaining tenure. The formula accounts for the varying interest earned by each installment, summing up the future value of each monthly deposit compounded at the monthly rate for its remaining months.
Tax on FD and RD Interest
Interest earned on both FD and RD is fully taxable as "Income from Other Sources" under the Income Tax Act, 2025. For FDs, banks deduct TDS at 10% under Section 393 if total interest from all FDs with that bank exceeds Rs 40,000 in a financial year (Rs 50,000 for senior citizens). No TDS is deducted on RD interest, but you must declare and pay tax on it while filing your ITR.
To avoid TDS deduction on FD interest when your total income is below the taxable limit, submit Form 15G (for individuals below 60 years) or Form 15H (for senior citizens) at the beginning of each financial year. Without PAN, TDS is deducted at a higher rate of 20%.
Tax-Saving FD: Section 80C Benefits
A Tax-Saving FD with 5-year lock-in period qualifies for deduction under Section 80C, allowing you to claim up to Rs 1.5 lakh per financial year. However, this benefit is only available under the Old Tax Regime. The interest earned continues to be taxable. Major banks like SBI, HDFC, ICICI, and PNB offer tax-saving FDs with interest rates ranging from 6.5% to 7.25%.
FD & RD Interest Rate Quick Reference
| Bank | FD Rate (1Y) | FD Rate (5Y) | RD Rate (5Y) | Senior Rate |
|---|---|---|---|---|
| SBI | 6.80% | 7.00% | 6.70% | +0.50% |
| HDFC | 6.90% | 7.25% | 7.00% | +0.50% |
| ICICI | 6.90% | 7.25% | 6.50% | +0.50% |
| PNB | 6.75% | 7.00% | 6.60% | +0.50% |
| Post Office | 6.90% | 7.50% | 6.70% | N/A |
FD vs RD: Complete Guide to Fixed and Recurring Deposits in India
Fixed Deposits (FD) and Recurring Deposits (RD) are two of the most popular investment options in India for risk-averse investors seeking guaranteed returns. Both instruments are offered by banks and post offices, providing capital protection with predetermined interest rates. Understanding the key differences between FD and RD can help you choose the right investment based on your financial goals and cash flow patterns.
What is a Fixed Deposit (FD)?
A Fixed Deposit is a one-time lumpsum investment where you deposit a specific amount with a bank for a predetermined tenure ranging from 7 days to 10 years. The interest rate is fixed at the time of booking and remains constant throughout the tenure, regardless of market fluctuations. FD interest rates in India currently range from 6.5% to 7.5% for general citizens, with senior citizens enjoying an additional 0.50% rate benefit.
The power of compounding makes FDs particularly attractive for long-term investments. With quarterly compounding (the most common frequency in Indian banks), a Rs 1 lakh FD at 7% for 5 years grows to approximately Rs 1.42 lakh. This compounding effect means your interest earns additional interest, significantly boosting your final returns compared to simple interest calculations.
What is a Recurring Deposit (RD)?
A Recurring Deposit allows you to invest a fixed amount every month for a set period, typically ranging from 6 months to 10 years. RD is ideal for salaried individuals who want to build savings systematically. Each monthly deposit earns interest from the date of deposit until maturity, with the first deposit earning the maximum interest and the last deposit earning only one month's interest.
RD interest rates are generally 0.25% to 0.50% lower than FD rates for the same tenure, as banks prefer lumpsum deposits. However, the flexibility of monthly investments makes RDs perfect for building a corpus gradually. A monthly RD of Rs 10,000 for 5 years at 6.7% yields a maturity amount of approximately Rs 7.15 lakh.
Interest Calculation: How FD and RD Returns are Computed
FD interest is calculated using the compound interest formula: A = P(1 + r/n)^(nt), where P is the principal, r is the annual interest rate, n is the compounding frequency, and t is the tenure in years. Quarterly compounding (n=4) is most common in Indian banks, though monthly compounding offers marginally higher returns.
RD interest calculation is more complex, as each monthly deposit has a different remaining tenure. The formula used is: M = P × [(1+i)^n - 1] / (1-(1+i)^(-1/3)), where P is the monthly deposit, i is the monthly interest rate, and n is the number of months. This accounts for the varying interest earned by each installment.
Tax on FD and RD Interest
Interest earned on both FD and RD is fully taxable as "Income from Other Sources" under the Income Tax Act, 2025. For FDs, banks deduct TDS at 10% under Section 393 if total interest from all FDs with that bank exceeds Rs 40,000 in a financial year (Rs 50,000 for senior citizens). No TDS is deducted on RD interest, but you must declare and pay tax on it while filing your ITR.
To avoid TDS deduction on FD interest when your total income is below the taxable limit, submit Form 15G (for individuals below 60 years) or Form 15H (for senior citizens) at the beginning of each financial year. Without PAN, TDS is deducted at a higher rate of 20%.
Tax-Saving FD: Section 80C Benefits
A Tax-Saving FD with 5-year lock-in period qualifies for deduction under Section 80C, allowing you to claim up to Rs 1.5 lakh per financial year. However, this benefit is only available under the Old Tax Regime. The interest earned continues to be taxable. Major banks like SBI, HDFC, ICICI, and PNB offer tax-saving FDs with interest rates ranging from 6.5% to 7.25%.
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"For risk-averse investors, FD laddering is the best strategy - split your corpus into 3-4 FDs with different maturities. This provides liquidity, better average returns, and reduces premature withdrawal penalties."
Frequently Asked Questions about FD and RD
Find answers to common questions about fd rd calculator. These FAQs are designed to help you understand key concepts and make informed decisions.
1. Is FD interest taxable?
Yes, FD interest is fully taxable as 'Income from Other Sources' under the Income Tax Act, 2025. Banks deduct TDS under Section 393 at 10% if interest exceeds ₹40,000 per bank per year (₹50,000 for seniors). Submit Form 15G/15H to avoid TDS if your total income is below taxable limit.
2. What is the penalty for premature FD withdrawal?
Most banks charge a penalty of 0.5% to 1% lower interest rate on premature withdrawal. For example, if your FD was at 7% and you break it early, you might get only 6-6.5% interest. Some banks offer sweep-in FD facility to minimize this penalty.
3. Which is better: FD or RD?
Choose FD if you have a lumpsum amount to invest and want guaranteed returns. Choose RD if you want to build savings through regular monthly deposits. FDs offer slightly higher rates. For tax-saving, consider Tax-saving FD (5-year lock-in) under Section 80C of the Income Tax Act, 2025.
4. What is the difference between cumulative and non-cumulative FD?
Cumulative FD pays interest at maturity along with principal, offering higher effective returns due to compounding. Non-cumulative FD pays interest monthly, quarterly, or annually, suitable for those needing regular income. Cumulative FD gives better overall returns.
5. Can I get a loan against FD?
Yes, banks offer loans against FD up to 90-95% of the FD amount at 1-2% higher interest rate than the FD rate. This is better than premature withdrawal as you avoid penalty and your FD continues earning interest.
6. What are the current small savings rates for FY 2026-27?
For FY 2026-27, key small savings rates include: NSC at 7.7% per annum, KVP (Kisan Vikas Patra) at 7.5% per annum (doubles in ~10 years), and Senior Citizens Savings Scheme (SCSS) at 8.2% per annum. These are reviewed quarterly by the government.
This FD & RD Calculator is for informational and educational purposes only. The calculations are based on compound interest formulas and current bank interest rates as of 2026. Actual FD/RD interest rates may vary between banks and are subject to change. FD deposits are insured by DICGC up to Rs 5 lakh per depositor per bank. TDS rules (Section 393) and tax benefits are subject to Income Tax Act, 2025 provisions. This tool should not be considered as financial advice. Consult a qualified financial advisor before making investment decisions.