FD Calculator
Work out your fixed deposit maturity with quarterly compounding, then see what is left after tax.
Reviewed by Ashutosh Joshi, PGDM (Finance) · Updated Oct 2026 · How we calculate
Key highlights
- ₹5 lakh in a 2-year SBI FD at 6.40% (rate checked 20 Oct 2026) matures at about ₹5,67,701 with quarterly compounding.
- In the 30% slab, tax takes about ₹21,100 including 4% cess (the calculator shows a flat 30%) of the ₹67,701 interest. Your real yearly return is closer to 4.5% than 6.4%.
- The RBI raised the repo rate to 5.50% on 7 Oct 2026. Deposit rates usually follow with a lag of a few weeks to months. Repo rate history.
- Each bank’s deposits are insured by DICGC up to ₹5 lakh per depositor, including interest.
Maturity value, before tax
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Effective post-tax return
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Compounded quarterly, the standard basis for Indian bank fixed deposits. Tax applied to interest at your marginal slab rate.
How your FD grows, year by year
Show year-wise table
What this FD calculator does
Enter the deposit amount, the bank's interest rate and the tenure. You get the maturity value and the interest earned, compounded quarterly the way most Indian banks do it for cumulative FDs. Then add your tax slab. The post-tax figure is the number I'd actually use to compare an FD with PPF, a debt fund or an RD.
How FD maturity is calculated
A = P × (1 + r ÷ 4)4tP = deposit · r = annual rate · t = years. Quarterly compounding, cumulative (reinvestment) FD.
For non-cumulative FDs that pay out interest monthly or quarterly, there's no compounding on your side. You simply receive P × r ÷ 12 (monthly, slightly discounted by most banks) or P × r ÷ 4 each quarter.
Worked example: ₹5 lakh for 2 years
Sunita, 52, a schoolteacher in Jaipur, puts ₹5,00,000 into an SBI FD for 2 years. SBI's card rate for 2 to under 3 years was 6.40% for the general public on 20 Oct 2026 (SBI retail term deposit rates).
- r ÷ 4 = 0.016, 4t = 8 quarters
- (1.016)8 ≈ 1.1354
- A = 5,00,000 × 1.1354 ≈ ₹5,67,701, so interest is about ₹67,701
- Effective annual yield: about 6.56%, slightly above the 6.40% headline because of quarterly compounding
Now tax. Her family income puts her in the 30% slab. With 4% cess, tax on ₹67,701 is about ₹21,123, leaving ₹46,578. That is roughly 4.5% a year after tax. With CPI inflation at 4.8% in August 2026, her real return is close to zero. FDs are a good way to keep money safe. They aren't a way to grow it.
Current FD rates worth knowing (checked 20 Oct 2026)
| Deposit | General | Senior citizen |
|---|---|---|
| SBI, 1 to under 2 years | 6.25% | 6.75% |
| SBI, 2 to under 3 years | 6.40% | 6.90% |
| SBI, 3 to under 5 years | 6.30% | 6.80% |
| SBI, 5 to 10 years | 6.05% | 7.05% (incl. We-care) |
| SBI Amrit Vrishti, 444 days | 6.45% | + senior benefit |
| Post Office 5-year Time Deposit | 7.5% (Oct–Dec 2026) | |
Sources: SBI rate page (last updated 19 Oct 2026); Ministry of Finance small savings notification for Q3 FY27. These change often, so check the bank's own page on the day you book.
The interesting one is the post office: 7.5% on a 5-year time deposit, government-backed, and the 5-year version qualifies for 80C under the old regime. Note that it pays interest out once a year instead of compounding it for you: ₹5 lakh earns about ₹38,550 a year. SBI's 6.40% rate also has a story behind it. The repo rate went up 25 bps to 5.50% on 7 October 2026, the RBI's first hike since 2023, but deposit rates hadn't caught up when I checked. If you're booking a large FD, I'd split it: book part now and keep part to book in a month or two, in case rates move up.
For me, an FD is where the emergency fund goes, and it's my shelter when markets turn volatile. Even if you're in the 30% slab and the post-tax return looks thin, I'd still keep some part of the portfolio in FDs. Debt funds carry uncertainty that an FD simply doesn't.
TDS and tax: what actually happens
- Interest is taxed at your slab rate every year, even on cumulative FDs where you get nothing until maturity. Declare it yearly; don't wait.
- TDS of 10% is deducted if your interest from one bank crosses ₹50,000 in a year (₹1 lakh for senior citizens). Without a PAN on file, it's 20%.
- Form 15G/15H stops TDS if your total income is below the taxable limit. Submit it at the start of each financial year.
- Tax-saver FDs have a 5-year lock-in and qualify for 80C only under the old regime.
When an FD makes sense, and its limits
FDs fit money you need within one to three years, an emergency fund, or a senior citizen's income ladder. They're simple, predictable, and covered by DICGC insurance up to ₹5 lakh per depositor per bank. For longer horizons the post-tax return struggles to beat inflation. For regular monthly saving, an RD works on the same logic. For 15-year safe money, PPF wins on tax.
This calculator doesn't model premature withdrawal penalties (usually 0.5–1% off the applicable rate), special tenures that change every few weeks, or the extra benefits some banks give super-senior citizens.
FD in charts: ₹5 lakh across SBI tenures
Most FD calculators stop at one maturity figure. I wanted to see where the sweet spot is on today's card rates, so here is the same ₹5 lakh across SBI's main tenures (rates checked on sbi.bank.in, last updated 19 Oct 2026, quarterly compounding, cumulative FD).
| Tenure | Rate (public) | Maturity (public) | Rate (senior) | Maturity (senior) |
|---|---|---|---|---|
| 1 year | 6.25% | ₹5,31,990 | 6.75% | ₹5,34,614 |
| 2 years | 6.4% | ₹5,67,701 | 6.90% | ₹5,73,313 |
| 3 years | 6.3% | ₹6,03,131 | 6.80% | ₹6,12,099 |
| 5 years | 6.05% | ₹6,75,088 | 6.55% | ₹6,91,910 |
Two things jump out. The 2–3 year bucket pays the highest card rate right now (6.40%), and going longer does not pay you more; the 5–10 year rate is actually the lowest at 6.05%. Locking in long only makes sense if you think rates will fall below this.
Senior-citizen note: SBI's 5–10 year rate of 7.05% for seniors includes the extra 0.50% from the "SBI We-care" scheme; the table above uses the standard +0.50% senior premium.
What tax does to the same FD
| Tax slab | Interest on ₹5 lakh, 2 years | Tax (incl. 4% cess) | Interest you keep | Effective post-tax yield |
|---|---|---|---|---|
| 0% | ₹67,701 | ₹0 | ₹67,701 | 6.56% a year |
| 5% | ₹67,701 | ₹3,520 | ₹64,181 | 6.22% a year |
| 20% | ₹67,701 | ₹14,082 | ₹53,619 | 5.23% a year |
| 30% | ₹67,701 | ₹21,123 | ₹46,578 | 4.55% a year |
In the 30% slab, a 6.40% FD keeps roughly 4.55% a year. Against 6% inflation, that is a small loss in real terms. This is the comparison competitor pages skip, and it is the one that matters.
FD vs Post Office 5-year Time Deposit
The Post Office 5-year TD pays 7.5% for Oct–Dec 2026 (interest paid annually, compounded quarterly), against SBI's 6.05% for five years. The PO deposit also qualifies for Section 80C under the old regime. On ₹5 lakh, 7.5% compounded quarterly works out to an effective 7.71% a year, versus 6.19% at SBI. The catch: PO interest is paid out each year, so unless you reinvest it, you won't actually get the compounded figure.
Planning a monthly habit rather than a lump sum? The RD calculator fits better. For tax-free long-term debt, compare with the PPF calculator.
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Frequently asked questions
How is FD interest calculated?
For cumulative FDs, most Indian banks compound quarterly: A = P × (1 + r/4)^(4t). ₹5 lakh at 6.40% for 2 years becomes about ₹5,67,701.
What is the SBI FD rate in October 2026?
For deposits below ₹3 crore, SBI's general rates range from 3.05% (7–45 days) to 6.45% (444-day Amrit Vrishti), with 6.40% for 2 to under 3 years. Senior citizens get 0.50% more, up to 7.05% for 5–10 years. Checked on 20 October 2026.
Is FD interest taxable?
Yes, at your income tax slab rate, every year it accrues. Banks deduct 10% TDS if interest exceeds ₹50,000 a year (₹1 lakh for senior citizens), but you still owe the balance if your slab is higher.
Will FD rates go up after the October 2026 repo rate hike?
They may. The RBI raised the repo rate by 25 bps to 5.50% on 7 October 2026 and moved to a "calibrated tightening" stance. Banks typically raise deposit rates with a lag, and not always by the full amount.
Is my FD safe if the bank fails?
Deposits in each bank are insured by DICGC up to ₹5 lakh per depositor, covering principal and interest together. Spread larger sums across banks if safety is the priority.
Is a post office FD better than a bank FD?
In October–December 2026 the post office 5-year time deposit pays 7.5%, higher than SBI's 5-year rate of 6.05%, and it's backed by the government. Bank FDs offer more tenure choices and easier online access.
Results are estimates based on the inputs you enter and the formulas shown above. They are not guaranteed returns, an offer, or personal investment, tax or loan advice. Rates quoted were checked on 20 Oct 2026 and can change; confirm with the bank, fund house or India Post before you act. See our disclaimer and editorial policy.