FD Calculator (STDR)
Calculate your cumulative Fixed Deposit returns with quarterly compounding. Get exact maturity amount.
What is STDR (Cumulative) Fixed Deposit?
STDR (Special Term Deposit Receipt) or Cumulative FD is the most popular type of Fixed Deposit where interest is compounded quarterly and paid along with principal at maturity. This gives higher returns than regular (TDR) FDs because your interest earns interest.
If you don't need regular interest payouts and want to maximize returns, STDR is the better choice. For regular income needs, check our TDR (non-cumulative FD) calculator.
How Quarterly Compounding Works
Banks calculate interest every quarter (3 months) and add it to your principal. This new amount earns interest in the next quarter — that's compounding.
Formula: A = P × (1 + r/4)^(4×n)
- A = Maturity Amount
- P = Principal (deposit amount)
- r = Annual interest rate (as decimal, e.g., 7% = 0.07)
- n = Number of years
Example: ₹5 Lakh FD at 7.25% for 3 Years
| Principal Amount | ₹5,00,000 |
| Interest Rate | 7.25% p.a. |
| Tenure | 3 years (12 quarters) |
| Compounding | Quarterly |
| Maturity Amount | ₹6,19,287 |
| Total Interest Earned | ₹1,19,287 |
FD Interest Rates by Major Banks (2025)
Here are current FD rates for general public (add 0.25-0.50% for senior citizens):
| Bank | 1 Year | 3 Years | 5 Years |
|---|---|---|---|
| SBI | 6.80% | 7.00% | 6.50% |
| HDFC Bank | 6.60% | 7.00% | 7.00% |
| ICICI Bank | 6.70% | 7.00% | 7.00% |
| Axis Bank | 6.70% | 7.10% | 7.00% |
| Kotak Mahindra | 6.75% | 7.20% | 6.20% |
| Small Finance Banks | 8.0-8.5% | 8.0-8.5% | 7.5-8.0% |
*Rates as of January 2025. Always verify with the bank before investing.
Tax on FD Interest
FD interest is fully taxable as "Income from Other Sources" at your income tax slab rate.
TDS Rules
- TDS Rate: 10% if PAN provided, 20% if not
- TDS Threshold: ₹40,000/year for general public, ₹50,000 for senior citizens
- Form 15G/15H: Submit to avoid TDS if your total income is below taxable limit
Tax Tip: If you're in the 30% tax bracket, your effective FD return at 7% becomes only 4.9% after tax. Consider tax-free options like PPF (7.1%) or ELSS for better post-tax returns.
Who Should Choose Cumulative (STDR) FD?
- Long-term savers who don't need periodic income
- Retirement corpus builders looking for safe, guaranteed returns
- Goal-based investors saving for a future expense (education, wedding, down payment)
- Risk-averse investors who prefer capital safety over higher equity returns
STDR vs TDR: Which to Choose?
| Feature | STDR (Cumulative) | TDR (Non-Cumulative) |
|---|---|---|
| Interest Payment | At maturity | Monthly/Quarterly |
| Compounding | Yes (quarterly) | No |
| Total Returns | Higher | Lower |
| Best For | Wealth building | Regular income |
FD vs Other Safe Investments
| Investment | Returns | Lock-in | Tax Benefit |
|---|---|---|---|
| Bank FD | 6.5-7.5% | Flexible | None (5-yr tax saver FD has 80C) |
| PPF | 7.1% | 15 years | 80C + Tax-free returns |
| RD | 6.5-7% | Flexible | None |
| Debt MF | 6-8% | None | Taxed at slab (post-2023) |
Tips for Maximizing FD Returns
- Compare rates — Small finance banks often offer 1-1.5% higher than big banks
- Use FD laddering — Split money across multiple tenures for liquidity + returns
- Book before rate cuts — Lock in higher rates when RBI signals easing
- Consider senior citizen rates — If you have elderly parents, book FD in their name
- Avoid premature withdrawal — Penalty of 0.5-1% reduces your effective return
Frequently Asked Questions
Can I break FD before maturity?
Yes, most banks allow premature withdrawal with a penalty of 0.5-1% on the applicable rate. Some banks have "no penalty" FDs with slightly lower rates. Check terms before booking.
Is FD interest calculated daily or quarterly?
For cumulative (STDR) FDs, interest is compounded quarterly (every 3 months). This is the industry standard followed by all Indian banks.
What happens to FD if the bank fails?
FDs up to ₹5 lakh per depositor per bank are insured by DICGC (Deposit Insurance). For larger amounts, consider splitting across multiple banks.