FD Calculator
Fixed Deposit Calculator. Calculate maturity amount and interest earned on your FDs.
Total Investment
₹1,00,000
Total Interest
₹41,478
Maturity Amount
₹1,41,478
How the FD Calculator works
Reviewed by Dinesh Babu · Last updated July 2026
A Fixed Deposit (FD) locks a lump sum with a bank for a chosen term at a fixed interest rate. This calculator computes your maturity amount and interest earned using compound interest — most banks compound FD interest quarterly. The rate is not set by the government; it depends on the bank and tenure, so you enter the rate your bank offers.
FDs are among the safest options — deposits up to ₹5 lakh per bank are insured by DICGC — but they are not the most tax-efficient. Interest is fully taxable at your income-tax slab, added to your total income each year (on an accrual basis), whether or not you have withdrawn it.
FD maturity (compound interest)
A = P × (1 + r/n)^(n×t)
P = principal, r = annual rate you enter, n = compounding frequency per year (usually 4), t = years.
Tax is the hidden cost of an FD
Because FD interest is taxed at your slab, the post-tax return can be much lower than the headline rate. A 7% FD returns only about 4.9% after tax for someone in the 30% bracket. This is why tax-free instruments like PPF, even at a lower headline rate, can beat FDs for long-term goals — while FDs remain excellent for safety and short-term parking.
How to avoid or reduce TDS
- Always give your PAN, otherwise TDS is 20% instead of 10%.
- If your total income is below the taxable limit, submit Form 15G (or 15H for seniors) so the bank does not deduct TDS.
- Senior citizens get a higher ₹50,000 TDS threshold and can claim up to ₹50,000 of interest deduction under Section 80TTB.
| Feature | Fixed Deposit (FD) | Recurring Deposit (RD) |
|---|---|---|
| You invest | A lump sum, once | A fixed amount every month |
| Interest basis | Whole sum from day one | Each instalment for its remaining term |
| Best for | Money you already have | Building savings from monthly income |
| Taxation | Slab rate, TDS if over ₹40,000/yr | Slab rate, TDS applies too |
₹5 lakh for 5 years at 7%
₹5,00,000 at 7% p.a. compounded quarterly for 5 years matures to about ₹7,07,000 — roughly ₹2.07 lakh of interest. In the 30% bracket, about ₹62,000 of that interest goes to tax, leaving a real gain nearer ₹1.45 lakh.
When TDS kicks in
If your FD interest in a year crosses ₹40,000 (₹50,000 for senior citizens) and your bank has your PAN, it deducts 10% TDS. On ₹60,000 of interest, that is ₹6,000 withheld — which you can adjust or claim back when filing your return. Without a PAN, TDS is 20%.
Common mistakes to avoid
- Assuming FD interest is tax-free — it is taxed every year at your slab, even before you withdraw.
- Not submitting PAN, which raises TDS to 20%.
- Forgetting Form 15G/15H when your income is below the taxable limit, letting the bank deduct avoidable TDS.
- Breaking an FD early without checking the penalty and the reduced rate for the actual period held.
Frequently asked questions
How is FD interest calculated?+
Most banks compound FD interest quarterly, so the maturity amount uses the compound-interest formula A = P × (1 + r/n)^(n×t) with n = 4. This calculator uses the rate and compounding you enter.
Is FD interest taxable?+
Yes, fully. FD interest is added to your income and taxed at your slab, on an accrual basis each year — even if you have not withdrawn it. There is no tax-free treatment like PPF, apart from the small senior-citizen 80TTB deduction.
When does the bank deduct TDS on my FD?+
When your interest from that bank crosses ₹40,000 in a year (₹50,000 for senior citizens), the bank deducts 10% TDS if you have given your PAN, or 20% if you have not. TDS is not an extra tax — you adjust it against your total tax or claim a refund.
How can I avoid TDS on my FD?+
If your total income is below the taxable limit, submit Form 15G (Form 15H if you are a senior citizen) to the bank so no TDS is deducted. Always ensure your PAN is on record to avoid the higher 20% rate.
What happens if I withdraw an FD early?+
Premature withdrawal usually attracts a small penalty (often 0.5%–1%) and the interest is recalculated at the rate applicable for the period the money actually stayed, which is lower than the booked rate.
Which FD tenure gives the best rate?+
It varies by bank and the rate curve — sometimes medium tenures (1–3 years) offer the peak rate rather than the longest ones. Compare a bank's rate card across tenures before deciding.
Is my FD money safe?+
Bank FDs are very safe. Deposits up to ₹5 lakh per depositor per bank (principal plus interest) are insured by the DICGC. Spreading large amounts across banks keeps more of it within this cover.
Is an FD better than a debt mutual fund?+
An FD gives a fixed, predictable return and guaranteed capital, taxed at your slab. Debt funds carry mild market risk but can be more tax-efficient over longer holdings. FDs suit certainty and short terms; debt funds can suit larger, longer, tax-conscious holdings. Consider your bracket and horizon.