FD Calculator: What ₹5 Lakh Earns at October 2026 Rates (Plus the New RBI Rule)

At October 2026 rates, ₹5 lakh in a 5-year FD at 7% grows to roughly ₹7,07,400, because banks compound interest every quarter. At SBI's one-year 6.25% rate, the same ₹5 lakh becomes about ₹5,32,000. Senior-citizen special FDs pay up to 7.25% — and from today, a new RBI rule forces banks to publish their bulk-deposit rates daily by 10:10 AM, so the rate you see is the rate you get.

How an FD calculator actually works (30 seconds)

An FD calculator does one thing: it applies compound interest. Indian banks compound FD interest quarterly (four times a year), so the formula is: Maturity = P × (1 + r/4)^(4 × t), where P is your deposit, r the annual rate, and t the tenure in years. Quarterly compounding is why your money grows slightly faster than simple interest would suggest — each quarter's interest earns interest in the next quarter. Two practical points most calculators gloss over: TDS — if the interest you earn across all FDs in a bank crosses ₹50,000 in a financial year (₹1,00,000 for senior citizens, from FY 2025-26), the bank deducts 10% TDS (20% without PAN). Your calculator shows the pre-TDS figure. And penalties — breaking an FD early usually costs 0.5–1% of the rate. A "1-year at 6.25%" FD broken after 6 months won't pay 6.25%. With that foundation, let's look at what the numbers actually are this month.

FD rates right now: October 2026

Rates below are regular (non-senior) FD rates as published by banks around September 25, 2026, compiled from bank websites and reported by Hindu BusinessLine via BankBazaar. Rates change — always confirm on the bank's site before booking. SBI: 1–2 years 6.45% · 2–3 years 6.40% · 3–5 years 6.30% (exact 1-year FD 6.25%). Special 444-day "Amrit Vrishti" tenure pays 6.45% (6.95% for seniors). HDFC Bank: 1–2 years 6.45% · 2–3 years 6.45% · 3–5 years 6.50%. Up to 7.10% on select tenures. ICICI Bank: 1–2 years 6.30% · 2–3 years 6.45% · 3–5 years 6.50%. Bank of Baroda: 1–2 years 6.60% · 2–3 years 6.50% · 3–5 years 6.40%. Post Office Time Deposit (July–September 2026 quarter): 1-yr 6.9% · 2-yr 7.0% · 3-yr 7.1% · 5-yr 7.5%. The post office is quietly beating most bank FDs right now. Small finance banks (select tenures, max): Suryoday 8.25% (8.50% seniors); Unity 8.00–8.50% (8.50% seniors on 501 days). The headline spread is real: the best small-finance-bank rate is over 1.75 percentage points above a plain SBI 1-year FD. That gap is exactly what an FD calculator is for — turning "6.45% vs 8.25%" into rupees you can compare.

What ₹5 lakh earns: three worked examples

All examples use quarterly compounding (the Indian bank standard) and are illustrative, rounded to the nearest rupee: ₹5,00,000 at 7% for 5 years → maturity ₹7,07,389 (interest ₹2,07,389). This is the classic benchmark — a solid middle-of-the-road FD today. ₹5,00,000 at SBI's 6.25% for 1 year → maturity ₹5,31,990 (interest ₹31,990). Short-tenure money earns less — but stays liquid. ₹1,00,000 at 7% for 5 years → maturity ₹1,41,478 (interest ₹41,478). For smaller deposits, the same math scales down linearly — rate and tenure, not size, decide the return. Notice the compounding effect: in the 5-year example, the last year's interest alone exceeds the entire first year. This is why premature withdrawal hurts more than it looks — you surrender the years when compounding does the heavy lifting. Use the FD calculator above to rerun these with your own deposit size and tenure. That's the entire point of the tool: your numbers, your decision.

Senior-citizen specials: the rates (and the math)

Banks reserve their best posted rates for senior citizens (60+, 0.50% extra on most FDs), and several run special-scheme FDs with even higher rates. Verified September 2026 figures: SBI "We-Care": 7.05% for 5–10 years. ₹5 lakh for 5 years → ₹7,09,129 (interest ₹2,09,129). Bank of Baroda "Golden Goal": 7.25% for 555 days (regular 6.75%). ₹5 lakh for 555 days → ₹5,57,722 (interest ₹57,722). PNB: 7.10% for 444 days. Canara Bank: 7.10% for 555 days. Small finance banks: Equitas, Suryoday and ESAF pay up to 8.50% to seniors on select tenures — the highest posted rates in the market this month. The SBI We-Care vs BoB Golden Goal comparison is a good calculator exercise: the 555-day special earns faster, but over 5 years the 7.05% special wins on absolute interest. Tenure and rate multiply — always compare maturity values, never just headline rates.

Bank FD vs post office: ₹5 lakh over 5 years

This is the comparison almost nobody runs, and the post office wins it right now: Bank FD at 7.00% (quarterly compounding), 5 years: ₹5,00,000 → ₹7,07,389. Post Office Time Deposit at 7.50% (annual compounding), 5 years: ₹5,00,000 → ₹7,17,815. That's roughly ₹10,400 more from the post office on the same deposit — plus sovereign backing, though with fewer digital conveniences. The trade-off: banks offer sweep-in FDs, premature-withdrawal flexibility and app-based booking; the post office offers a higher 5-year rate. Run your own numbers in the calculator before choosing.

The new RBI rule that keeps this honest (effective today, Oct 1)

From today, the RBI's (Commercial Banks Interest Rate on Deposits) Second Amendment Directions 2026 is in force. The headline change: banks must publish their bulk-deposit rates (₹3 crore and above) on their websites by 10:00 AM every business day, with a 10-minute grace period to 10:10 AM. The rate actually paid must match the published schedule — no side deals — and identical bulk deposits must get identical rates across all branches and customers on the same day. Why should an FD calculator reader care? Because opaque, negotiated pricing is what let banks quote different rates to different customers. The new rule ends that for bulk deposits and signals the direction for everything else: published, comparable, accountable rates. If your FD is under ₹3 crore (almost every retail depositor), the rule doesn't directly change your rate — retail rates were already disclosed in advance. But the spirit helps you: a banking system where every rate is published daily is one where comparison tools like this calculator get more powerful, not less.

Five mistakes FD investors keep making

1. Chasing the headline rate without checking the tenure. A 7.50% "special" for 400 days can earn less absolute interest than a 7.00% FD for 3 years. Compare maturity values. 2. Ignoring TDS. On a ₹10 lakh FD at 7%, yearly interest is about ₹71,800 — above the ₹50,000 TDS threshold for non-seniors. Your calculator number is pre-tax reality. 3. Breaking FDs early without doing the math. The 0.5–1% penalty plus the lost compounding usually beats taking a personal loan — but "usually" isn't "always". Calculate both. 4. Putting everything in one tenure. Laddering — splitting ₹5 lakh into 1-, 2-, 3-, 4- and 5-year FDs — gives you yearly liquidity while capturing longer-tenure rates. 5. Forgetting inflation. At ~5% inflation, a 6.5% FD earns about 1.5% in real terms before tax. FDs are for safety and goals with fixed dates, not wealth creation.

Your next step

Open the FD calculator at the top of this article and run three numbers: your actual deposit, the rate your bank quoted you, and the best rate from the table above. If the gap is more than ₹5,000 on your tenure, it's worth a 10-minute comparison before you book.

This article is for educational purposes only and is not financial advice. Please consult a SEBI-registered investment adviser for personalized guidance. Investments are subject to market risk. Rates cited are from bank-published figures reported in September–October 2026 and may have changed — verify before investing.