FD + RD Calculator
FD Calculator Inputs
Current rates: SBI 6.60%, HDFC 6.60%, ICICI 6.60%
+0.5% extra interest
Maturity Amount
Principal
₹1,00,000
Interest Earned
₹41,478
Effective Yield
7.19%
Investment Breakdown
Growth Over Time
Yearly Breakdown
| Year | Opening | Interest | Closing |
|---|---|---|---|
| 1 | ₹1,00,000 | ₹7,186 | ₹1,07,186 |
| 2 | ₹1,07,186 | ₹7,702 | ₹1,14,888 |
| 3 | ₹1,14,888 | ₹8,256 | ₹1,23,144 |
| 4 | ₹1,23,144 | ₹8,849 | ₹1,31,993 |
| 5 | ₹1,31,993 | ₹9,485 | ₹1,41,478 |
Understanding FD Calculations & RBI Repo Rate Impact
What is RBI Repo Rate?
The repo rate is the interest rate at which the Reserve Bank of India (RBI) lends money to commercial banks. Currently at 5.25% (as of June 6, 2026), the repo rate directly influences FD interest rates. When the repo rate increases, banks typically raise FD rates to attract deposits. When it decreases, FD rates tend to fall.
Current Status: Unchanged for 2nd consecutive time. Neutral stance amid West Asia geopolitical tensions. The RBI's Monetary Policy Committee (MPC) meets every two months to review and set the repo rate. Next MPC meeting: August 2026.
How is FD Interest Calculated?
Fixed Deposit interest is calculated using the compound interest formula: A = P × (1 + r/n)^(n×t)
- A = Maturity Amount
- P = Principal (initial deposit)
- r = Annual interest rate (as decimal)
- n = Compounding frequency (4 for quarterly)
- t = Time in years
Example: ₹1,00,000 at 7% for 5 years with quarterly compounding:
A = 1,00,000 × (1 + 0.07/4)^(4×5) = ₹1,41,877
Top Bank FD Rates (June 2026)
| Bank | General Rate | Senior Rate | Best Tenure |
|---|---|---|---|
| SBI | 6.60% | 7.10% | 444 days (Amrit Vrishti) |
| HDFC Bank | 6.60% | 7.10% | 18-21 months |
| ICICI Bank | 6.60% | 7.10% | 2-10 years |
| IDFC FIRST | 7.00% | 7.50% | 500 days |
Source: Economic Times, May 16, 2026 | Rates effective from May-June 2026
FD vs RD: Which is Better?
Fixed Deposit (FD): Lump sum investment for a fixed period. Higher returns as entire amount earns interest from day one. Best for those with surplus funds.
Recurring Deposit (RD): Monthly installments for a fixed period. Good for building savings habit. Lower returns than FD as deposits happen monthly, not upfront.
Example: ₹3,00,000 for 5 years at 7%:
• FD: One-time ₹3L = ₹4,25,000 maturity
• RD: ₹5,000/month for 60 months = ₹3,54,000 maturity
• Difference: FD gives ₹71,000 more (24% higher)
Read the guide
Tax on FD Interest
FD interest is fully taxable as per your income tax slab. Banks deduct TDS (Tax Deducted at Source):
- 10% TDS if interest exceeds ₹40,000 per year (₹50,000 for senior citizens)
- Submit Form 15G/15H if total income is below taxable limit to avoid TDS
- Tax-saving FDs under Section 80C (5-year lock-in) qualify for ₹1.5L deduction
Tips for Maximizing FD Returns
- Choose Quarterly Compounding: Most banks offer quarterly. Higher frequency = better returns
- Senior Citizen Advantage: Extra 0.25-0.50% interest for age 60+
- Ladder Your FDs: Split across different tenures for liquidity + rate optimization
- Lock Long-Term Now: With repo rate stable at 5.25%, rates may fall if economy improves
- Compare Banks: Small finance banks (IDFC FIRST, Yes Bank) offer 0.25-0.50% extra
- Online Bonus: Many banks give 0.10-0.25% extra for online FD bookings