How is bank FD interest calculated in India?

Under Reserve Bank of India (RBI) guidelines, Indian commercial banks (SBI, HDFC, ICICI, PNB) compound fixed deposit interest quarterly (4 times per year) using the formula A = P * (1 + r/4)^(4*t).

Do senior citizens get extra interest on Fixed Deposits?

Yes, Indian banks typically offer an additional 0.50% p.a. (50 basis points) interest rate on fixed deposits for senior citizens aged 60 and above.

RBI Quarterly Compounding Standard

Fixed Deposit (FD) Calculator

Calculate bank fixed deposit maturity and interest with RBI quarterly compounding and senior citizen rates.

Deposit Parameters

Total Deposit Amount (₹)₹1,00,000

Annual Interest Rate (% p.a.)7%

Current top bank FD rates range from 6.8% to 7.25% p.a.

Tenure (Years)5 Years

Senior Citizen (+0.50% p.a. additional interest)

Maturity Value (5 Years)

₹1,41,478

Principal Deposited₹1,00,000

Interest Earned+₹41,478

Maturity Value₹1,41,478

Principal Deposited

₹1,00,00071%

Compound Interest Earned

₹41,47829%

FD Maturity Across Key Tenures (₹1,00,000 Deposit)

Tenure	Quarterly Rate	Interest Earned	Total Maturity
1 Year	7.00%	+₹7,186	₹1,07,186
2 Years	7.00%	+₹14,888	₹1,14,888
3 Years	7.00%	+₹23,144	₹1,23,144
5 Years	7.00%	+₹41,478	₹1,41,478
10 Years	7.00%	+₹1,00,159	₹2,00,159

Compare With Equities

See How Equity SIP Outperforms Bank FD

Compare wealth accumulation between a 7% FD and a 12% equity mutual fund.

SIP vs FD Battle

RBI & Tax Disclaimer: Fixed deposit interest is fully taxable according to your income tax slab. TDS (Tax Deducted at Source) at 10% applies if annual interest exceeds ₹40,000 (₹50,000 for senior citizens). DICGC insures bank deposits up to ₹5 Lakhs per depositor per bank.