Fixed Deposits

Q: How is FD interest calculated?

Most Indian banks use compound interest, compounded quarterly, with A = P × (1 + r/n)^(n×t).

Q: Is FD interest taxable?

Yes — it is fully taxable at your income-tax slab, and TDS applies once interest crosses the annual threshold.

Quick answer

A fixed deposit (FD) locks a lump sum for a fixed period at a fixed rate, usually compounded quarterly. These guides explain exactly how FD interest is calculated, how an FD compares with a recurring deposit, and let you estimate your maturity value with the FD calculator.

IndependentFD interest figures use example rates; actual rates vary by bank and tenure. Sourced to RBI and DICGC. How we rate →

FD guides & tools

How FD Interest Is Calculated

The formula, quarterly compounding and a worked example.

FD vs RD

Lump sum vs monthly saving — which fits you.

FD Premature Withdrawal

Penalty, interest recalculation, and partial vs full closure.

Senior Citizen FD

Higher rates for 60+, eligibility, tax relief and DICGC cover.

FD Taxation

TDS, tax on interest, 80TTB, 15G/15H and tax-saving FDs.

DICGC Deposit Insurance

₹5 lakh cover per bank — what's protected and what isn't.

FD Interest Frequency

Monthly, quarterly or cumulative — income vs maximum growth.

Cumulative vs Non-Cumulative FD

Reinvest for growth or pay out for income.

FD Laddering Strategy

Staggered maturities for liquidity and better rates.

Best FD Strategy by Goal

Match the FD structure to what you're saving for.

Monthly Income from FD

Turn a lump sum into predictable monthly income.

FD Safety Guide

DICGC cover, bank vs NBFC, and spreading risk.

FD Calculator

Estimate maturity value and interest instantly.

Deciding between an FD and keeping cash accessible? See savings account vs fixed deposit.

Frequently asked questions

How is FD interest calculated in India?

Most banks use compound interest, compounded quarterly: A = P × (1 + r/n)^(n×t). Interest each quarter is added to the balance, so later interest is earned on a larger amount.

Are fixed deposits safe?

Bank FDs are low-risk and deposits are insured by DICGC up to ₹5 lakh per depositor per bank, covering principal plus interest.

Is FD interest taxable?

Yes. It is taxable at your slab, and banks deduct TDS once your FD interest from that bank crosses ₹50,000 in a year (₹1,00,000 for senior citizens, FY 2025-26).

Information only — not tax or investment advice. Rates are examples and vary by bank; verify current terms.