Fixed Deposit Calculator
Kenyan bank FD interest · simple or compound · net of 15% WHT 🇰🇪
Minimums vary: from KES 500 (app-based) to KES 20,000–50,000 at most bank branches.
2026 guide: big-bank counter rates ~5–7%, digital products ~8–8.6% (NCBA ~8.6%, KCB M-PESA 8.5%). Negotiate above KES 1M.
Standard Kenyan FD: interest is paid once, at maturity.
End balance on the same deposit over the same period, all net of 15% WHT. MMF is liquid (1–3 day withdrawal); FD and T-Bill lock to maturity. Full tools: MMF calculator · T-Bill calculator.
How fixed deposits work in Kenya
A fixed deposit (FD) locks your money with a bank for an agreed period — usually 1 to 24 months — at a fixed interest rate. Interest is normally paid once, at maturity, as simple interest: Principal × rate × months ÷ 12. The bank deducts 15% withholding tax on the interest before paying you, and that is a final tax. If you instruct the bank to roll the deposit over, the reinvested interest starts compounding — this calculator models both.
Fixed deposit rates in Kenya (2026)
Deposit rates published by CBK ranged about 3% to 11% across banks in 2026. A practical guide:
- NCBA — around 8.6% on fixed/goal products.
- KCB M-PESA Fixed Savings — 8.5% p.a., from as little as KES 500, booked from your phone.
- KCB standard FDs — ~6.3% counter rate.
- Big-bank counter rates (Equity, Co-op, Absa, Stanchart) — typically 5–7%; minimums KES 20,000–50,000.
- Tier-2 and digital banks — often the highest published rates; this is where 9–11% offers appear.
Rates are negotiable. Above roughly KES 1 million, treasury desks will usually improve on the counter rate — always ask, and compare at least three banks before booking.
Simple vs compound interest, in plain terms
Simple interest is earned on the principal only: I = P × r × t. A 12-month KES 1,000,000 FD at 8% earns KES 80,000 gross (KES 68,000 after tax).
Compound interest reinvests each interest payment so it also earns interest: FV = P × (1 + r/n)n×t. The same money rolled monthly at 8% grows to about KES 1,070,200 net after a year — compounding beats simple interest, and the gap widens with time. This page doubles as a general interest calculator for Kenya: enter any principal, rate and period in either mode.
Is your money safe in a fixed deposit?
Bank deposits are insured by the Kenya Deposit Insurance Corporation (KDIC) up to KES 500,000 per depositor, per bank. For amounts above the cover, spread deposits across banks or consider Treasury Bills, which are government-backed with no cap. Watch out for early-withdrawal penalties: breaking an FD before maturity usually forfeits most or all interest — keep your emergency cash in a money market fund instead, where withdrawals take 1–3 days.
FD vs money market fund vs T-Bill
All three are taxed the same 15% on interest, so compare net yields: in 2026 top MMFs pay ~10–11.4% gross and stay liquid; 364-day T-Bills pay ~8.25% with sovereign backing; bank FDs span 3–11% depending on the bank and your negotiation. The comparison panel above shows the end balance of each on your actual numbers. Also see the savings goal calculator to plan regular deposits, and the inflation calculator to check your real (after-inflation) return.
Frequently Asked Questions
How is fixed deposit interest calculated in Kenya?
Most Kenyan bank FDs pay simple interest at maturity: Interest = Principal × rate × months ÷ 12. Example: KES 500,000 at 8% for 6 months = 500,000 × 0.08 × 6/12 = KES 20,000 gross. The bank then deducts 15% withholding tax (KES 3,000), so you receive KES 17,000 net. If you roll the deposit over, interest starts compounding — use the Compound mode in this calculator.
Which bank has the best fixed deposit rates in Kenya in 2026?
Published deposit rates ranged roughly 3% to 11% in 2026. Notable examples: NCBA ~8.6%, KCB M-PESA Fixed Savings 8.5%, KCB standard FDs ~6.3%. Tier-2 banks and digital products usually pay more than the big banks’ counter rates — and rates are negotiable for larger amounts (typically KES 1M+). Always ask for a better rate before booking.
Is fixed deposit interest taxed in Kenya?
Yes — banks deduct 15% withholding tax on the interest at source. For residents it is a final tax, so you do not declare it again. This calculator shows both gross and net figures. Only holders of a valid KRA exemption certificate (e.g. registered pension schemes) earn gross.
Are fixed deposits safe? What if the bank collapses?
Bank deposits in Kenya are insured by the Kenya Deposit Insurance Corporation (KDIC) up to KES 500,000 per depositor per bank. Amounts above that depend on the bank’s health. For larger sums, many investors prefer Treasury Bills (government-backed with no cap) — compare with our T-Bill calculator.
Can I withdraw a fixed deposit early?
Yes, but you forfeit some or all of the accrued interest — most banks pay zero or a heavily reduced rate on premature withdrawal, and some charge a penalty fee. If you may need the cash, a money market fund (withdrawable in 1–3 days) is usually the better home for it.
Fixed deposit or money market fund — which pays more?
In 2026, top money market funds yield ~10–11.4% gross while most bank FDs pay 3–9% — so MMFs usually win on rate and liquidity. An FD wins when you negotiate a high fixed rate and want it locked (MMF yields float), or for the KDIC guarantee. Both are taxed 15% on interest. Use the comparison panel in this calculator with your actual quotes.