FD Calculator
A = P(1 + r/n)^(nt) — quarterly compounding is the Indian-bank-standard default, editable below.
A fixed deposit (FD) pays a fixed interest rate for a fixed period. Banks usually credit interest at intervals, most commonly every quarter, and later interest is earned on the interest already credited. That is compounding: the more often it happens, the higher the maturity amount, although the difference is small. On ₹1,00,000 at 7% for five years, quarterly compounding gives ₹1,41,478 against ₹1,40,255 for annual compounding.
FD interest is taxable at your slab rate, and it is taxed each year as it accrues, even on a cumulative FD that pays nothing until maturity. Banks deduct tax at source (TDS), generally at 10% (20% if you have not given your PAN), once the interest they pay you in a year crosses a threshold. As of writing, that threshold is ₹50,000 for most depositors and ₹1,00,000 for senior citizens. TDS is only an advance payment: if your slab rate is higher you owe the difference, and if your total income is below the taxable limit you may be able to submit Form 15G or 15H to avoid it. Thresholds and rules change, so verify them with your bank or the Income Tax Department.
Deposit Details
Interest Earned: ₹0
This is an estimate, not an offer. The figures above are indicative calculations based on the numbers you entered and standard industry formulas/rules of thumb. They are not a loan/insurance quote, a pre-approval, or a guarantee of approval by any bank, NBFC, or insurer. Actual eligibility, interest rate, premium, and approval are decided solely by the lender/insurer after their own underwriting and verification.
How Compounding Frequency Changes the Result
Each row is ₹1,00,000 at 7% a year for 5 years.
| Compounding | Maturity amount | Interest earned |
|---|---|---|
| Annually | ₹1,40,255 | ₹40,255 |
| Half-yearly | ₹1,41,060 | ₹41,060 |
| Quarterly | ₹1,41,478 | ₹41,478 |
| Monthly | ₹1,41,763 | ₹41,763 |
FD vs Other Fixed-Income Options
A broad guide as of writing. Features, rates, and tax rules change, so check the current terms of any option before you decide, and consider your own goals and tax situation.
| Option | Returns | Safety | Access to your money | Tax on returns |
|---|---|---|---|---|
| Bank FD | Fixed at booking | Deposit insurance covers up to ₹5 lakh per depositor per bank, principal and interest combined | Premature withdrawal usually allowed, often with a penalty | Interest taxable at slab rate; TDS may apply |
| Post Office time deposit | Fixed; rate set by the government | Government-backed | Premature withdrawal allowed after a minimum period, with conditions | Interest taxable at slab rate |
| PPF | Government-declared, revised quarterly | Government-backed | 15-year lock-in with limited partial withdrawals | Interest and maturity tax-free under current rules |
| Debt mutual funds | Market-linked, not guaranteed | Interest-rate and credit risk; not covered by deposit insurance | Usually redeemable within a few working days; exit loads may apply | Gains taxed under the prevailing capital-gains rules |
| Company FDs and bonds | Often higher than bank FDs | Depends on the issuer's credit quality; not covered by deposit insurance | Limited; early exit may be restricted | Interest taxable at slab rate |
To see how a long-term, tax-free option compares over 15 years, try thePPF Calculator.
Frequently Asked Questions
What compounding frequency does this calculator use?
It defaults to quarterly compounding (4 times a year), which is the standard convention most Indian banks use for fixed deposits. You can change it if your bank compounds differently.
Is TDS on FD interest accounted for here?
No. This calculator shows the gross maturity amount before any tax deducted at source (TDS) or income tax on the interest earned, which varies by your tax slab.
Does the interest rate change during the tenure?
No, this calculator assumes a fixed interest rate for the entire tenure, which matches how most bank FDs work (the rate is locked in at booking).