FD / RD Calculator

FD interest rates in 2026 range from 6.5%–7.5% p.a. for regular citizens and 7%–8% for senior citizens at major banks. Small finance banks offer up to 9%. SBI offers around 6.5–7%, HDFC Bank 7–7.4%, and ICICI Bank 6.7–7.25% depending on tenure.

Yes. FD interest is fully taxable as 'Income from Other Sources' at your applicable income tax slab rate. TDS is deducted at 10% if interest exceeds ₹40,000 per year (₹50,000 for senior citizens). Submit Form 15G/15H to avoid TDS if your total income is below the taxable limit.

FD (Fixed Deposit): You invest a lump sum once and earn interest for the chosen tenure. RD (Recurring Deposit): You invest a fixed amount every month and earn interest. FD is better if you have a large sum to invest. RD is better for those who want to save regularly from monthly income.

TDS is deducted at 10% on FD interest exceeding ₹40,000/year (₹50,000 for senior citizens). To avoid TDS, submit Form 15G (for non-senior citizens) or Form 15H (for senior citizens) to your bank at the start of the financial year if your total income is below the taxable limit.

On premature FD withdrawal, banks apply a penalty of 0.5%–1% on the applicable interest rate. You receive the interest rate for the actual period held minus the penalty. Some banks offer penalty-free premature withdrawal for specific FD schemes.