FD Calculator 2026: Maturity Value, Interest and the FD You Need for a Secured Credit Card

Fixed Deposits (FDs) remain one of the most popular and secure investment options in India. They offer guaranteed returns over a fixed tenure.

The FD Calculator makes it easy to estimate your interest earnings and maturity amount before you invest. The calculator uses one formula: A = P(1 + r/n)^(n×t). Most Indian banks compound quarterly, so n = 4.

Put in ₹1,00,000 at SBI's 6.40% for 2 years, and you get about ₹1,13,540 at maturity, which is ₹13,540 of interest.

This article runs the maths at current October 2026 rates. It also calculates how much of that FD becomes a credit limit if you use it to get a secured credit card. Because people often lock up ₹1 lakh when ₹25,000 would have built the same CIBIL history.

How to use an FD calculator

1. Principal (P): the amount you deposit, e.g. ₹1,00,000.
2. Rate (r): the bank's annual rate as a decimal. 6.40% becomes 0.064. Use the senior citizen rate if you're 60 or older.
3. Tenure (t): in years. 18 months is 1.5.
4. Compounding (n): 4 for quarterly, which most banks use on cumulative FDs. Some banks pay simple interest on very short deposits, so check your bank's terms. For those, the formula is just P × r × t.

Cumulative vs payout FDs: In a cumulative FD, interest is added back to the deposit every quarter and earns interest itself. That's what the formula above calculates. In a payout FD, interest is paid out to your savings account monthly or quarterly. You get a steady income, but you don't get the compounding.

Worked example: SBI 2-year FD

The math: ₹1,00,000 at 6.40%, compounded quarterly for 2 years

Quarterly rate = 6.40% ÷ 4 = 1.60%

Number of quarters = 4 × 2 = 8

Maturity amount = 1,00,000 × (1.016)^8 ≈ ₹1,13,540 (or ≈ ₹1,14,663 at the senior rate of 6.90%. That's ₹1,123 more for the same deposit.)

FD maturity table at October 2026 rates (₹1 lakh deposit)

These calculations are done using October 2026 rates, compounded quarterly. SBI's rates come from SBI's own rate page. The other banks' rates come from published reports.

The SBI 3-year rate is lower than the 2-year rate. So, locking in for longer doesn't always pay more. Check the rate for each tenure before you choose.

Did FD rates go up after the 7 October RBI hike?

On 7 October 2026, the RBI's Monetary Policy Committee raised the repo rate by 25 basis points, from 5.25% to 5.50%. It also changed its stance from "neutral" to "calibrated tightening,” which takes rate cuts off the table for now. The RBI projects CPI inflation at 5.2% for FY27.

Banks raised loan rates within days, but deposit rates have moved much less. Here is where the big names stood as of about 23–28 October 2026, according to bank pages and news reports:

SBI Chairman C S Setty said on 8 October that he expects banks to hold off on raising deposit rates for the next two to three months, citing sufficient liquidity in the system.

Book now or wait? The next MPC meeting is on 2–4 December 2026. SBI Research has forecast a further 50 bps in December, either as a straight 50 bps hike or as 25 bps plus a wider liquidity corridor. Nomura expects 25 bps.

Even if a hike is announced, SBI's comments and the unchanged rates at HDFC and others suggest deposit rates would rise slowly. So, you shouldn't hold money idle for five weeks hoping for 10–15 bps more. On ₹1 lakh over a year, 0.15% is about ₹150.

The caveat is that SBI's chairman also said some banks may have to raise deposit rates if credit growth stays elevated. Your existing FD doesn't change. A repo rate hike doesn't affect deposits you've already booked. They earn their booked rate until maturity.

If the amount is large, split it: book half now and half after the December policy.

FD calculator for a secured credit card: how much FD do you need?

A secured credit card, also called an FD-backed card, is issued against a fixed deposit. The bank puts a lien on the FD, which means you can't break it while the card is open. Then, it gives you a credit limit equal to a share of the deposit. The FD keeps earning interest at its booked rate the whole time.

Most issuers set the limit at roughly 75% to 90% of the FD amount, and a few, such as IDFC FIRST WOW, give a limit of at least 100% of the FD. IDFC's FIRST EA₹N card starts at ₹5,000.

Minimum FDs vary widely by issuer, so we have kept a card-by-card table of limits and minimum FDs of the best FD-backed credit cards in India.

Work backwards from your monthly spend

Start with what you actually spend on the card each month, not the FD you'd like to show off.

Say you're a fresher on ₹4–5 LPA, spending about ₹10,000 a month on the card. To keep that under 30% of the limit, you need a limit of about ₹33,000. At a 90% card utilisation, that's an FD of roughly ₹37,000, so ₹40,000–₹50,000 gives you room.

The math: ₹50,000 FD at SBI's 1-year rate of 6.25%, compounded quarterly

Credit limit at 90% = ₹45,000

Maturity ≈ ₹53,199, so you earn ₹3,199 in interest while the card is running. That interest is far below the ₹50,000 TDS threshold, so no TDS is deducted.

However, the same ₹50,000 at a small finance bank's ~8% would grow to about ₹54,122. So, you’re giving up roughly ₹923 a year by keeping the FD with your card issuer. That's a fair price for building a clean CIBIL history.

⚠️ Watch out: If the FD matures or you break it, the card may be blocked or closed. Choose a tenure of at least 12 months, or turn on auto-renewal.

The limit doesn't grow by itself. To raise it, you usually have to add to the FD or move up to an unsecured card. Missed payments still hit your CIBIL score. Card interest is still 3–4% a month. And if you default, the bank can recover the dues from your FD.

A secured card is meant to be temporary. After 6–12 months of on-time payments, read our guide on moving from a secured to an unsecured credit card. If you aren't sure your score is ready, the minimum CIBIL score guide lists the bands banks look at.

TDS and tax on FD interest in FY 2026-27

• TDS limit: Banks deduct 10% TDS when your FD interest at that bank goes over ₹50,000 a year (₹1,00,000 for senior citizens). These limits have applied since 1 April 2025. If the bank doesn't have your PAN, the deduction is 20%.
• Tax is due anyway: FD interest is added to your income and taxed at your slab rate, whether or not TDS was deducted.
• New law, new form: The Income-tax Act, 2025 took effect on 1 April 2026. Form 121 is a declaration under section 393(6) of the Act, read with Rule 211 of the Income-tax Rules, 2026. Check the requirements in the FAQs published by Income Tax Department or with your bank before you file.

Is a small finance bank FD safe?

Small finance banks pay around 8% according to aggregator sites, compared with SBI's 6.40%. On ₹1 lakh over 2 years, that's about ₹3,600 more. Deposit insurance from DICGC covers ₹5 lakh per depositor per bank, principal and interest combined.

Reports mention a proposal to raise the cover to ₹7.5 lakh reached the PMO in June 2026, but it hasn't been yet approved. If you want the higher rate, keep the principal plus expected interest at or below ₹5 lakh in each bank.

So, which FD should you book?

If you want a secured card to build credit, book a ₹25,000–₹50,000 FD for 12 months, at the bank whose card you want to apply for. Size it so your normal monthly spend is under 30% of the limit, pay the full bill every month, and plan to move to an unsecured card within a year.

The interest you give up compared with a small finance bank is a few hundred rupees a year. The CIBIL history is worth far more than that.

If you're a saver and don't need a card, book the 2-year tenure at your main bank now rather than waiting for December. Put any amount beyond ₹5 lakh per bank into a second bank.

For more card-by-card comparisons, start at the Monzy blog.

FAQs about FD calculator

How is FD interest calculated in India?

Most banks compound FD interest quarterly using A = P(1 + r/4)^(4t). For example, ₹1,00,000 at 6.40% for 2 years grows to about ₹1,13,540. Very short deposits may earn simple interest (P × r × t) at some banks. A payout FD sends the interest to your account monthly or quarterly instead of reinvesting it, so it earns less than a cumulative FD.

Will FD rates go up after the RBI repo rate hike in October 2026?

Only a few banks have raised them so far. ICICI Bank added 10 bps on some tenures and Indian Bank added 15 bps on its special schemes. SBI, HDFC Bank, PNB and Bank of Baroda haven't changed their rates, and SBI's chairman has said there may be no deposit rate action for now. The next MPC meeting is on 2–4 December 2026.

Does my existing FD rate change after a repo rate hike?

No. An FD you've already booked earns its booked rate until maturity. A repo rate hike only affects new deposits and renewals. If a bank raises rates sharply, you could break the FD and rebook it, but the premature withdrawal penalty usually wipes out the gain on small rate differences.

How much credit limit do I get on a credit card against FD?

Most secured credit cards set the limit at roughly 75% to 90% of the FD amount, and a few, such as IDFC FIRST WOW, advertise up to 100%. A ₹50,000 FD would give you about ₹40,000–₹50,000 of limit. Minimum FDs vary by issuer, so check the bank's current terms before you book the deposit.

How much TDS is deducted on FD interest in 2026?

Banks deduct 10% TDS when your FD interest at that bank goes over ₹50,000 in a year, or ₹1,00,000 for senior citizens. Without a PAN, they deduct 20%. From FY 2026-27, Form 121 replaces Forms 15G and 15H for people whose tax for the year is nil. You need to submit it separately to each bank.

Is an FD in a small finance bank safe?

Deposits at small finance banks are insured by DICGC up to ₹5 lakh per depositor per bank, including interest. A proposal to raise the cover to ₹7.5 lakh hasn't been approved. If you want the roughly 8% rates these banks pay, keep principal plus expected interest within ₹5 lakh at each bank.

Disclaimer

This is my honest read, not formal financial advice. I'm not your advisor, so run anything big past a professional before you act. FD rates and secured-card terms change often, so confirm the current figures on the bank's own page before you book. Rates and figures as of 29 October 2026.