A Fixed Deposit (FD) is one of the safest and most popular savings instruments in India, offered by banks and NBFCs. When you open an FD, you deposit a lump sum for a fixed tenure at a predetermined interest rate. Unlike savings accounts, FDs typically offer higher returns and are ideal for conservative investors who want guaranteed returns without market risk.
Interest on Indian Fixed Deposits is usually compounded quarterly, which means you earn interest on both your principal and previously accrued interest four times a year. The maturity amount depends on three factors: the principal deposited, the annual interest rate, and the tenure. Senior citizens often receive an additional rate premium of 0.25% to 0.50% above standard rates.
Current FD rates in India typically range from 3% to 7.5% depending on the bank, tenure, and deposit size. Short-term FDs (7 days to 1 year) offer lower rates, while 3 to 5 year deposits usually provide the best returns. Our FD calculator uses the standard compound interest formula with your chosen compounding frequency to estimate maturity value instantly.
For example, if you invest ₹1,00,000 in a 5-year FD at 7% interest compounded quarterly, your maturity amount would be approximately ₹1,41,478 — earning about ₹41,478 in interest. The calculator shows a clear breakdown of principal versus interest earned, helping you compare FD options across banks and tenures before investing.