Fixed Deposit Calculator and Best Interest Rates from India's Top Banks

Fixed Deposit Calculator + Best Interest Rates from India’s Top Banks

Millions of Indians invest in fixed deposits due to the convenience, safety of principal and fixed returns that this quintessential financial saving instruments provide. The fixed deposit is the default investing mode for many and continues to help people support their short and long-term goals with customary aplomb. In this post, I present to you a fixed deposit calculator which can be used for calculate your investment’s maturity value over time and at different interest rates.

Fixed Deposit Maturity Value Calculator

When you invest in a fixed deposit, banks give you a maturity value for your deposit.

A Maturity Value means the amount that is payable to the depositor at the end of the term of the fixed deposit. This Maturity Value depends on four factors –

  • Original amount deposited
  • Interest rate offered
  • Compounding frequency of interest rate
  • Tenure

Here is the fixed deposit calculator that will help you calculate the maturity value of your investment

Let’s understand how the calculations has been programmed with a simple example.

The original amount deposited is the principal. This amount can be as low as ₹1,000 and as high as ₹1,000 crores.

The interest rate offered is a percentage. So if a 8% interest rate is offered, it means that on ₹100, an interest of ₹8 shall be payable

Finally, the compounding frequency determines at what intervals will the bank top up your account balance with interest. Compounding frequency can be monthly, quarterly, half-yearly or yearly. Most banks in India do quarterly compounding.

So, let’s put some numbers

  • The Original amount deposited (P) – ₹10,000
  • Interest rate offered (i) – 8%
  • The Compounding frequency of interest rate – Quarterly (4)
  • Tenure (T) – 3 years

The formula for calculating the Maturity Value on the above is :

Maturity Value = [P * (1+ (i/4)%)] ^ (T*4)

= [₹10,000 * (1 + (8/4)%)] ^ (3*4)

Or, [₹10,000 * 1.02] ^ 12

That results in … Maturity Value = ₹12,682

In simple terms, the depositor will receive a maturity value of ₹12,682 at the end of 3 years from his principal deposit of ₹10,000 which was compounded quarterly at 8% p.a.

What is a Fixed Deposit?

A fixed deposit is a financial instrument that allows consumers to invest a fixed amount of money on which they receive a fixed interest at a pre-determined rate of interest.

Saving instruments like fixed deposits are very popular source with the masses. A recent Reserve Bank of India report said that over ₹1,30,00,000 crores of fixed deposits are kept in scheduled commercial banks across India. 

Banks offering the best fixed deposit interest rates

This is one of the most common questions asked.

And for good measure. Afterall, everyone wants the biggest bang per buck (and hence the name of our blog “Beginners Buck”). Different banks in India offer different interest rates. These interest rates depend on the MCLR or repo rate. The repo rate is fixed by India’s Central Bank i.e. the Reserve Bank of India. In other words, if the repo rate goes down, the interest of new fixed deposits go down.

I regularly check the fixed deposit interest rates of 41 Indian banks so that you can see many options in one single view.

Banks offering the Highest FD rates

Highest fixed deposit rates

The following banks are currently offering the highest interest rates on fixed deposit.

  1. DCB Bank
  2. IDFC First Bank
  3. Lakshmi Vilas Bank
  4. DCB Bank
  5. Yes Bank (pulled out from list due to current issues related to solvency)
  6. RBL Bank
  7. AU Small Finance Bank
  8. Jana Small Finance Bank
  9. Ujjivan Small Finance Bank
Bank Name6 months1 year3 years5 years
DCB Bank6.857.007.707.50
IDFC First Bank6.757.257.257.25
Lakshmi Vilas Bank7.007.507.507.25
RBL Bank6.407.407.207.35
Yes Bank6.857.257.257.25
AU Small Finance Bank6.507.007.777.50
Jana Small Finance Bank7.008.008.408.25
Ujjivan Small Finance Bank7.008.007.507.00

Updated information on the interest rates including the terms and conditions is available in websites of different Indian banks from where you can access the information. In the blog post, you can find additional information such as interest rates for deposits over ₹2 crores, premature withdrawal penalty etc.

Recommended article: How to choose a suitable bank for investing in a fixed deposit?

A useful information.

Long tenures have a higher interest rate as compared to short tenures. However, it is observed in India that the longest tenures i.e. over 5 years, may have a lower interest rate as compared to medium tenures like 3 years.

Benefits of Fixed Deposits

Fixed deposits offer many advantages and benefits to investors. In addition to assured savings, fixed deposits are feature-rich and an attractive investment option. 

Here are some of the major benefits of fixed deposits –

  1. Attractive Interest Rates that are better than savings accounts
  2. Low Deposit Amount with investment starting from as low as ₹500
  3. Multiple Tenures ranging from 7 days to 10 years
  4. Flexible Interest Withdrawal where investors can receive interest every month, every quarter, annually or be invested until maturity
  5. Easy Investing via Net Banking and Branches for greater convenience
  6. Premature Withdrawal of fixed deposit is permitted
  7. Nomination Facility is available
  8. Overdraft Facility (or Loan Against Fixed Deposit) is available

Many Indians use fixed deposits to meet their short, medium and long-term goals.

Related Articles on Fixed Deposits

What are the different types of fixed deposits?

Is it better to invest in a fixed deposit or debt mutual fund

How to open a fixed deposit account?

Additional Resources

Here are some articles you can read to get better details on financial and stock metrics