FD Calculator
Calculate fixed deposit maturity value and interest with quarterly, monthly, half-yearly or yearly compounding, including senior citizen rates.
What is the FD Calculator?
A fixed deposit locks money with a bank or NBFC for a fixed tenure at a fixed interest rate. Most Indian banks compound FD interest quarterly.
How does it work?
Cumulative FDs reinvest interest and pay it at maturity using compound interest. Deposits shorter than 6 months usually earn simple interest. Non-cumulative FDs pay interest monthly or quarterly instead.
Formula
A = P × (1 + r/n)^(n × t)
n = compounding periods per year, t = years
Example
₹1,00,000 at 7% for 5 years compounded quarterly matures to ₹1,41,478 — interest of ₹41,478 and an effective yield of 7.19%.
Cumulative and payout FDs
In a cumulative FD, interest is added to the deposit, usually every quarter, and paid with the principal at maturity. Because interest earns interest, the effective yearly return is a little higher than the quoted rate: 7% compounded quarterly works out to about 7.19% a year.
In a non-cumulative or payout FD, interest is paid out monthly, quarterly or yearly instead of being reinvested. This suits people who need regular income, such as retirees, but the total earned is lower.
| ₹5 lakh, compounded quarterly | Maturity value | Interest earned |
|---|
| 6.5% for 1 year | ₹5,33,301 | ₹33,301 |
| 7% for 3 years | ₹6,15,720 | ₹1,15,720 |
| 7.25% for 5 years | ₹7,16,130 | ₹2,16,130 |
| 7.5% for 5 years (senior citizen rate) | ₹7,24,974 | ₹2,24,974 |
Tax and TDS on FD interest
FD interest is fully taxable at your slab rate. For a cumulative FD, interest is taxable each year as it accrues, not only at maturity.
Banks deduct TDS at 10% when your interest from that bank crosses ₹50,000 in a financial year (₹1,00,000 for senior citizens), or 20% if the bank does not have your PAN. TDS is not the final tax: if your slab rate is higher you pay the difference, and if your income is below the taxable limit you can claim a refund.
If your total income is below the taxable limit, submit Form 15G (or Form 15H if you are 60 or older) to the bank at the start of the year to stop TDS.
Real return after tax and inflation
For someone in the 30% bracket, a 7% FD earns about 4.8% after tax (plus cess), which may be below inflation. In the new regime, many salaried people below ₹12 lakh of taxable income pay no tax, so FDs suit them better.
Tax-saving FDs offer a Section 80C deduction in the old regime, but they lock money in for five years and their interest is still taxable.
Safety and choosing a bank
- Deposits are insured by DICGC up to ₹5 lakh per depositor per bank, including interest, across all accounts in the same capacity.
- Spread larger amounts across banks to stay within the insured limit.
- Small finance banks often offer higher rates, which reflects higher risk; the same ₹5 lakh insurance applies.
- Corporate and NBFC deposits are not covered by DICGC; check their credit rating.
Frequently asked questions
Is FD interest taxable?
Yes, FD interest is added to your income and taxed at your slab rate. Banks deduct TDS once interest crosses the annual threshold unless you submit Form 15G/15H where eligible.
Do senior citizens get higher rates?
Most banks offer 0.25–0.75% extra to senior citizens. Toggle the senior citizen option to add 0.50%.
What about tax-saver FDs?
Tax-saver FDs have a 5-year lock-in and qualify under Section 80C in the old regime. Use a 5-year tenure to estimate their maturity.
What happens if I break an FD early?
Most banks pay the rate applicable for the period the deposit actually ran, minus a penalty of typically 0.5–1%. Tax-saving FDs cannot be broken before five years.
Should I choose a long FD to lock in a high rate?
When rates are expected to fall, longer deposits lock in today’s rate. When they are expected to rise, shorter deposits let you reinvest sooner. Splitting money across several maturities (laddering) balances the two.
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