FD / RD Calculator

Most bank FDs compound interest quarterly. Annual compounding on ₹1,00,000 at 7% gives ₹7,000 after year one. Quarterly compounding gives ₹7,186 — that extra ₹186 seems small, but over 10 years the gap becomes significant. Always check whether a bank offers quarterly or annual compounding, especially for large deposits.

Most banks in India offer an additional 0.25% to 0.50% interest rate on FDs for senior citizens (age 60+). On a ₹10 lakh deposit at 7.5% vs 7%, that extra 0.5% means ₹5,000 more per year, or ₹25,000+ over 5 years. Senior citizen FDs also receive a higher TDS exemption threshold.

A 5-year Tax-Saving FD qualifies for Section 80C deductions up to ₹1.5 lakh per year. Unlike ELSS mutual funds, it carries zero market risk. The trade-off: it has a mandatory 5-year lock-in with no premature withdrawal, and the interest earned is still fully taxable at your income slab rate.

All bank deposits in India (FD, RD, Savings) are insured by the Deposit Insurance and Credit Guarantee Corporation (DICGC) up to ₹5 lakhs per bank per depositor. If you have a large corpus, spread it across multiple banks to ensure full DICGC coverage. This insurance makes bank FDs one of the safest investments in India.