FD Calculator
Work out the maturity amount and interest on a bank fixed deposit, the effective annual yield, and whether the bank will deduct TDS.
Your deposit
| Deposit | ₹1,00,000 |
| Total interest | ₹41,478 |
| Average interest per year | ₹8,296 |
| TDS by the bank | No — under ₹50,000/yr |
FD interest is taxed at your slab rate every year whether paid out or reinvested. Banks deduct 10% TDS when interest from all your deposits with that bank exceeds ₹50,000 in a financial year (₹1,00,000 for senior citizens); submit Form 15G/15H if your total income is below the taxable limit.
Quick answer
A fixed deposit grows at a fixed rate, usually compounded every quarter. ₹1,00,000 at 7% for 5 years with quarterly compounding matures at about ₹1,41,478 — ₹41,478 of interest, an effective yield of 7.19% a year. The interest is taxable at your slab rate, and banks deduct 10% TDS above ₹50,000 of interest a year (₹1 lakh for senior citizens).
How FD maturity is calculated
For a cumulative (reinvestment) deposit: Maturity = P × (1 + r ÷ n)^(n × t), where P is the deposit, r the annual rate, n the number of compounding periods a year (4 for quarterly) and t the term in years. Compounding more often slightly raises the effective yield.
With interest paid out monthly or quarterly instead, the interest is not reinvested, so the total is simple interest: P × r × t. Choose "Interest paid out" to see that case.
Tax, TDS and deposit insurance
- FD interest is added to your income and taxed at your slab rate every year, even on cumulative deposits where you receive it only at maturity.
- Banks deduct 10% TDS when interest from all your deposits with that bank exceeds ₹50,000 in a financial year (₹1,00,000 for senior citizens). Submit Form 15G (or 15H if 60+) if your total income is below the taxable limit.
- Tax-saver FDs have a 5-year lock-in and qualify for Section 80C, but only under the old tax regime.
- DICGC insures deposits up to ₹5 lakh per depositor per bank, including interest.
- Breaking an FD early usually costs a penalty of 0.5–1% on the rate.
Reference tables & worked examples
| Rate | 1 year | 3 years | 5 years |
|---|---|---|---|
| 6% | ₹1,06,136 | ₹1,19,562 | ₹1,34,686 |
| 6.5% | ₹1,06,660 | ₹1,21,341 | ₹1,38,042 |
| 7% | ₹1,07,186 | ₹1,23,144 | ₹1,41,478 |
| 7.5% | ₹1,07,714 | ₹1,24,972 | ₹1,44,995 |
Frequently asked questions
How is FD interest calculated?
Most banks compound quarterly: Maturity = P × (1 + r/4)^(4t). ₹1 lakh at 7% for 5 years becomes about ₹1,41,478.
Is FD interest taxable?
Yes. It is taxed at your income-tax slab rate in the year it accrues, whether paid out or reinvested.
When does the bank deduct TDS on FD interest?
When your interest from that bank exceeds ₹50,000 in a financial year, or ₹1 lakh for senior citizens. TDS is 10% if your PAN is linked, 20% if not.
What is the effective yield of an FD?
The annual return after compounding. A 7% FD compounded quarterly has an effective yield of about 7.19%.
Are fixed deposits safe?
Deposits in banks are insured by DICGC up to ₹5 lakh per depositor per bank, covering principal and interest.
Do senior citizens get higher FD rates?
Most banks pay an extra 0.25–0.75 percentage points to depositors aged 60 and above. Enter your bank’s senior rate in the calculator.
Sources
Estimates for general information only — not tax, legal or financial advice. Check your payslip, employer or a qualified adviser before acting.
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