How to use the FD calculator
- Enter the deposit amount and your bank's interest rate.
- Set the tenure in months.
- Choose how often the bank compounds interest; quarterly is most common.
- Pick your tax slab to see the post-tax maturity and effective return.
FD formula
A = P × (1 + r ÷ n)n × t
n is the number of times interest is compounded each year: 4 for quarterly.
Maturity of ₹1 lakh FD (quarterly compounding)
| Tenure | 6.5% | 7% | 7.5% |
|---|---|---|---|
| 1 year | ₹1,06,660 | ₹1,07,186 | ₹1,07,714 |
| 2 years | ₹1,13,764 | ₹1,14,888 | ₹1,16,022 |
| 3 years | ₹1,21,341 | ₹1,23,144 | ₹1,24,972 |
| 5 years | ₹1,38,042 | ₹1,41,478 | ₹1,44,995 |
| 10 years | ₹1,90,556 | ₹2,00,160 | ₹2,10,235 |
FD vs other safe options
FDs are simple and safe (deposits are insured up to ₹5 lakh per bank by DICGC), but the interest is taxable. For long-term, tax-free growth compare the PPF calculator; for monthly saving, see the RD calculator.
Frequently asked questions
How is FD interest calculated?
Most banks compound FD interest quarterly: maturity = P × (1 + r/4)^(4 × t), where r is the yearly rate and t the tenure in years. Some banks compound monthly or half-yearly; choose the option that matches your bank.
Is FD interest taxable?
Yes. FD interest is added to your income and taxed at your slab rate every year, even for cumulative FDs where you receive it only at maturity.
When does the bank deduct TDS on FD interest?
From FY 2025-26, banks deduct 10% TDS when your total FD interest with that bank exceeds ₹50,000 in a year, or ₹1 lakh for senior citizens (Section 393 of the Income-tax Act, 2025). If your total income is below the taxable limit you can submit Form 15G (or 15H if you are 60 or older).
Do senior citizens get higher FD rates?
Most banks offer senior citizens about 0.25–0.75% more than regular rates. Enter your bank's senior citizen rate in the calculator.
Is a 5-year tax-saving FD worth it?
In the old tax regime, a 5-year tax-saver FD qualifies for 80C up to ₹1.5 lakh, but it is locked in and the interest is fully taxable. In the new regime there is no 80C benefit.
What is the difference between a cumulative and non-cumulative FD?
A cumulative FD reinvests interest and pays it all at maturity, so it compounds. A non-cumulative FD pays interest monthly or quarterly, which suits regular income but earns less in total.