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FD & RD Calculator

Calculate Bank or Post Office Recurring Deposit (RD) and FD returns. Updated for 2026 with senior citizen rate toggles and quarterly compounding.

One-time deposit with guaranteed returns

Why Compounding Frequency Matters for Indian FDs

Most Indian banks compound FD interest quarterly (4 times per year). This means your interest earns interest every 3 months, not just at maturity. A 7% FD compounded quarterly produces an effective annual return of about 7.19% — slightly better than simple 7%. Over long tenures, this difference adds up significantly. Always select "quarterly" for SBI, HDFC, ICICI, and most scheduled banks.

FD vs RD: Which Should You Choose?

Fixed Deposits work best when you have a lump sum to invest — a bonus, inheritance, or savings. Recurring Deposits (RDs) are ideal if you want to save from a regular monthly income, like a salary. Both offer guaranteed, risk-free returns backed by DICGC insurance up to ₹5 lakh per bank per depositor. For most salaried individuals, an RD combined with a SIP in equity mutual funds is a solid wealth-building combination.

Senior Citizen FD Benefits

Investors aged 60 and above get an additional 0.25%–0.75% interest rate on FDs at most Indian banks. The RBI mandates that banks offer at least some premium to senior citizens, though the exact rate varies. Additionally, senior citizens get a higher TDS-free interest threshold of ₹50,000/year (vs ₹40,000 for others). The Senior Citizens' Savings Scheme (SCSS) also offers higher rates than regular FDs for those above 60.

Common Questions

How do I calculate Post Office Recurring Deposit (RD) maturity for 2026?+

You can calculate your Post Office RD by selecting the 'Recurring Deposit' option above, entering your monthly deposit amount, and inputting the current Post Office RD rate (historically around 6.7% for 5-year terms). Post office RDs are compounded quarterly, which is the default setting in our calculator.

What compounding frequency do Indian banks and post offices use?+

Most Indian banks and the Post Office compound FD and RD interest quarterly (4 times per year). Our calculator uses this standard to ensure your maturity amount is accurate.

What is the additional interest rate for senior citizens?+

Most Indian banks offer 0.25% to 0.75% extra interest rate to senior citizens (aged 60 and above) on fixed deposits. The standard additional rate is 0.50%. This calculator adds 0.50% when you check the senior citizen option.

What is the difference between FD and RD?+

A Fixed Deposit (FD) involves investing a lump sum amount for a fixed period. A Recurring Deposit (RD) involves investing a fixed amount every month for a set duration. Both offer guaranteed returns, but RD is better for those who want to save from regular income.

Is FD interest taxable in India?+

Yes. FD interest is fully taxable as per your income tax slab. Banks deduct TDS at 10% if interest exceeds ₹40,000 per year (₹50,000 for senior citizens). If you're in the 30% slab, you owe additional tax above the TDS deducted. Submit Form 15G/15H to avoid TDS if your total income is below the taxable limit.

What is the effective annual rate (EAR) for an FD?+

The Effective Annual Rate (EAR) is the actual annual return when compounding is applied. For example, a 7% FD compounded quarterly has an EAR of about 7.19%. EAR is always slightly higher than the nominal rate when compounding frequency is more than once per year.

Apoorv

Software Engineer & Creator of CalcHub. Exploring finance, health, and mathematics from first principles to help you uncover objective reality.

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