FD & RD Calculator India 2026

Best FD Interest Rates in India 2026 — Bank-wise Comparison

Note: Rates as of March 2026. Always verify current rates on the bank's official website before booking. Small finance banks offer 8-9% but carry higher risk.

How is FD Interest Calculated in India? Simple + Compound

FD Tax Rules India 2026 — TDS and Income Tax

FD interest is fully taxable as "income from other sources" — added to your total income and taxed at your slab rate. TDS is deducted if annual FD interest exceeds ₹40,000 (₹50,000 for senior citizens). TDS rate: 10% if PAN linked, 20% if no PAN. TDS is deducted but your actual tax may be higher if you're in 20% or 30% slab — pay remaining tax at ITR filing. To avoid TDS: submit Form 15G (below 60, income below exemption) or Form 15H (senior citizens) to your bank. Tax-saver FD (5-year lock-in) gives 80C deduction up to ₹1.5L but interest is still taxable.

Best RD Interest Rates in India 2026

FD vs RD — Which is Better for You?

FD vs RD vs SIP — The Real Comparison for Indians 2026

FD gives guaranteed 7-7.5% but fully taxable. RD gives same rate but for monthly savers. SIP in equity mutual funds gives 11-14% historically but market risk applies. After tax, FD effective return for 30% slab person is only 4.83% (7% minus 30% tax). Inflation at 6% means FD barely preserves wealth. For emergency fund (3-6 months expenses) — FD is perfect. For wealth building (5+ year goals) — SIP beats FD every time. Don't compare them — use both for different purposes.

Post Office FD vs Bank FD — Which is Safer?

Post Office FD is backed by Government of India — 100% safe, no deposit insurance limit. Bank FD is insured only up to ₹5 lakh per depositor per bank (DICGC). Post Office FD offers 7.50% for 5-year tenure. However, premature withdrawal is more complex in Post Office. For amounts above ₹5 lakh — Post Office FD is safer. For convenience and higher rates — private banks like HDFC/Axis. For tax saving FD under 80C — Post Office 5-year FD is excellent.

Senior Citizen FD — Extra Benefits in India 2026

Senior citizens (60+) get 0.25% to 0.75% extra on FD rates across all banks. SBI offers +0.50%, HDFC +0.50%, Axis +0.50%, Yes Bank +0.75%. Super senior citizens (80+) may get additional benefits. TDS threshold for senior citizens is higher — ₹50,000/year instead of ₹40,000. Senior citizens can submit Form 15H to avoid TDS if total income is below taxable limit. Additionally, senior citizens can claim deduction under Section 80TTB up to ₹50,000 on interest income from FD and savings account. This is more beneficial than 80TTA (₹10,000 limit) available to regular citizens.

Monu's FD Strategy — How I Use FD for Emergency Fund

Started FD in February 2026 after clearing credit card debt. Emergency fund goal: 6 months expenses = ₹2,40,000. Currently have ₹50,000 in SBI FD at 6.80% for 1 year. Quarterly compounding. Interest per year: ₹3,400. TDS applies only above ₹40,000 interest — I'm far below. Plan: keep adding ₹5,000/month to a new RD alongside this FD. Target: ₹2,40,000 emergency fund in 18 months. Rest of savings go into SIP for wealth building. FD is not for getting rich — it's for sleeping well at night. Not financial advice — just my personal approach.

Frequently Asked Questions about FD and RD in India