FD Calculator

Frequently Asked Questions

• Which bank is best for fixed deposit 2026?

  The following banks are best to open a fixed deposit account in 2026:

  Name of the Bank	FD Rates for General Citizens  (in % p.a.)
  SBI Bank	3.00 to 7.10%
  PNB Bank	3.50 to 7.25%
  Axis Bank	3.00 to 7.10%
  Unity Small Finance Bank	4.50 to 9.00%
  HDFC Bank	3.00 to 7.25%
  ICICI Bank	3.00 to 7.10%
  Bandhan Bank	3.00 to 7.85%
  Union Bank (Andhra Bank)	3.00 to 7.00%

• Is the FD interest calculator free to use?

  Yes, the fixed deposit interest calculator is a freely used financial tool. 

• How much time does it take to use the FD calculator?

  It takes just a few seconds to use an FD calculator. The online FD interest calculator is very user-friendly and requires you to enter only a few details, such as the principal amount, interest rate, tenure, and compounding frequency. The fixed deposit FD calculator will then automatically calculate the maturity amount of your investment.

• How does the FD calculator help in future financial planning?

  FD Calculator 2026 is a valuable tool for investors who want to plan for their financial future. By using a fixed deposit FD calculator, you can get a clear picture of how your Fixed Deposit investment will grow over time and how it can help you achieve your financial goals like retirement planning, saving for child education, or saving for a down payment on a house.

• Can I get monthly interest on a fixed deposit?

  Yes, it is possible to get monthly interest on a fixed deposit. This type of FD is known as a monthly income scheme (MIS). In an MIS, the interest earned on the FD is paid out to the investor on a monthly basis.

• Will FD rates increase in 2026?

  Many banks have increased the FD interest rates for various tenures in the new Financial Year 2023-24. In addition, the financial institutions are offering higher FD rates by 0.25-0.5% p.a. for senior citizens and women customers.

• What is the expected FD interest rate in 2026?

  The latest Fixed Deposit rates in 2026 offered by different banks and financial institutions range between 3.50% p.a. to 9.20% p.a. for specific tenures. You can take help of Policybazaar's FD Interest Calculator 2026 to calculate your Fixed Deposit interest rates.

• Which bank is best for fixed deposit 2026?

  The list of high FD interest rate banks to earn high returns are as follows:

  Name of the Bank	FD Rates for General Citizens (in % p.a.)	FD Rates for Senior Citizens (in % p.a.)
  HDFC FD Interest Rates	3.00% To 7.10%	3.50% to 7.75%
  ICICI Bank FD Rates	3.00% To 7.10%	3.50% to 7.60%
  Axis Bank FD Interest Rates	3.50% To 7.26%	3.50% to 8.01%
  PNB FD Interest Rates	3.50% to 7.00%	4.00% to 8.05%
  SBI FD Interest Rates	3.00% to 7.00%	3.50% to 7.50%

• What is the tax benefit of FD?

  The deposits and interest earned from FD plan are taxable under the Income Tax Act, of 1961 as per the applicable tax slab rates. The best Tax-Saver FD Schemes provide tax benefits under Section 80C of the IT Act.

• How is FD calculated?

  There are 2 ways of calculating the interest rate on fixed deposits:

  1. Simple Interest

  Simple interest on fixed deposits is calculated by multiplying:

  Principal Amount, Rate of Interest annually, and the total tenure of the FD divided by 100.

  For example, if you deposit 1 lakh rupees at a 10% annual rate of interest for a period of 5 years, then the interest amount at the time of maturity will be:

  Simple Interest = P X R X T / 100

  Simple Interest = 1,00,000 X 10 X 5 / 100

  Simple Interest = Rs. 50,000

  Maturity amount will be Rs. 1,50,000

  2. Compound Interest

  Compound interest is calculated on both the interest amount as well as the principal amount. It is calculated by using the following formula:

  M = P (1+r / n) ^ (n * t)

  M = Maturity amount

  P = Principal amount

  r = Rate of Interest

  n = number of compounding in a year

  t = Total tenure

  for example, if you deposit Rs. 10,000 for 3 years at an interest rate of 10% (compounded quarterly), then the interest amount at the time of maturity will be:

  M = P (1+r / n) ^ (n * t)

  M = 10,000 (1 + (0.1 / 4) ^ (4 * 3)

  M = 10,000 (1 + 0.025) ^ (12)

  M = 10,000 (1.025) ^ (12)

  M = Rs. 13,449

  Compound Interest (CI) = Maturity Amount – Principal Amount

  CI = 13,449 – 10,000 = Rs. 3,449

  Maturity amount will be Rs.10,3449

• Can I make FD for 20 years?

  In general, the tenure of any Fixed Deposit offered by various banks and financial institutions ranges from 7 days to 10 years. The maximum deposit considered by all banks, in general, is 10 years, but some banks may increase their tenure in India as per the investor’s preference.

• Is FD tax free?

  No, Fixed Deposits are not tax free. However, an investor can claim deductions up to Rs. 1,50,000 annually under Section 80C of the Income Tax Act, 1961.

• Can I withdraw FD at any time?

  If the bank does not have any lock-in period for the FD, the investor can withdraw the amount whenever they wish to.

• Is FD risk free?

  Yes. Fixed Deposits are completely risk free investment options that offer guaranteed returns to the investors if investments are made for a long-term period.

• What is the minimum period for a fixed deposit?

  Generally, the FD tenure ranges from 7 days to 10 years, depending on the tenure chosen by the investor.

• Can a 5-year tax saver FD be broken?

  No. A tax saver FD of 5-year cannot be broken before the completion of the tenure.

• What is the minimum and maximum amount required to open FD?

  The minimum amount of FD can vary from one bank to another. While SBI requires a minimum amount of Rs. 1,000 to open an FD account, Axis Bank requires Rs. 5,000 for the same. The rate of interest offered on FDs also differs from one bank to another.
  The maximum amount does not have a capping when it comes to opening an FD account. However, it is recommended to check with the provider before investing to see if there is an upper limit.