What is the current FD interest rate in 2025?

As of early 2025, major banks like SBI, HDFC, and ICICI offer FD rates between 6.5% and 7.3%. Small finance banks often offer higher rates up to 8% or 8.5% for senior citizens.

Is FD interest taxable in India?

Yes, FD interest is fully taxable as per your income tax slab. Banks also deduct 10% TDS if your annual interest exceeds ₹40,000 (₹50,000 for senior citizens) unless you submit Form 15G/15H.

Which is better, FD or RD?

FD is better if you have a lump sum amount as you earn interest on the full amount from Day 1. RD is better for salaried individuals to build a habit of monthly savings without having a large initial corpus.

FD / RD Calculator

Fixed Deposit and Recurring Deposit maturity calculator with compounding.

Principal Amount

₹

Please enter a valid amount

Annual Interest Rate

Tenure

Compounding Frequency

Explore Presets

Maturity Amount
₹0

Total Invested

₹0

Interest Earned

₹0

What this means for you

Actionable Suggestions

You might also need

Year-by-Year Growth

Principal

Interest

Goal Target

FD Interest Rates India — 2025 Comparison

Staying updated with the latest FD rates 2025 is crucial. Currently, top public and private sector banks offer competitive rates ranging from 7% to 7.5% for tenures of 1-3 years. Senior citizens consistently get an additional 0.50% premium across almost all fixed deposit schemes in India. Always check for 'Special Tenures' like 444 days or 777 days that often carry higher promotional rates.

FD vs RD — Which Investment is Better?

If you have a lump sum of money, a Fixed Deposit (FD) is almost always better because the entire amount earns interest from the first day. A Recurring Deposit (RD) is designed for those who want to save monthly. While the interest rates are often identical, the total interest earned is lower in RD because the full amount isn't invested for the entire duration.

Understanding FD Taxation and TDS

Interest earned on Fixed Deposits is added to your total income and taxed at your applicable slab rate. Banks in India are required to deduct 10% TDS (Tax Deducted at Source) if your total interest income across all branches of the bank exceeds ₹40,000 in a financial year. For senior citizens, this limit is ₹50,000. You can use Form 15G or 15H to prevent TDS if your total income is below the taxable limit.

Compounding Magic: Quarterly vs Monthly

Our FD/RD maturity calculator allows you to choose between quarterly, monthly, half-yearly, and annual compounding. Most bank FDs in India use Quarterly Compounding, which results in an 'Effective Annual Yield' that is slightly higher than the stated nominal interest rate.