FD Calculator
Enter the amount, rate and term to get the maturity value, the interest it earns, and what survives tax at your slab — with a year-by-year accrual schedule.
Deposit details
At maturity
Maturity amount
— for —, —
- Amount deposited —
- Interest earned —
- Tax at your slab —
- Effective yield after tax —
- Interest after tax —
What this calculator assumes
- Interest compounds on the basis you select. Indian banks compound quarterly by default, and pay simple interest on deposits shorter than 6 months — the calculator forces simple interest below that tenure regardless of what you choose.
- Tenure is treated as an exact fraction of a year. Banks count actual days and align compounding to their own quarter ends, which moves the maturity value by a few rupees.
- Tax is the slab rate you select plus 4% health and education cess. Surcharge is not applied, so the figures understate the tax for anyone with total income above the surcharge thresholds.
- The slab list carries every marginal rate in the new regime ladder. All of the interest is taxed at the single rate you pick; if it actually straddles two bands, the real figure sits between the two.
- No deduction is applied against the interest. The deposit-interest reliefs familiar as sections 80TTA and 80TTB — renumbered by the Income-tax Act, 2025 — exist only under the old regime, and the 80TTA one never covered fixed deposit interest at all.
- Premature withdrawal penalties, renewal at a different rate, and any bank-specific senior citizen rate premium are excluded.
How the maturity amount is worked out
A fixed deposit is the least mysterious product in Indian retail finance. The bank takes your money, agrees a rate at the moment of booking, and returns it with interest that compounds on a fixed cycle:
A = P × (1 + r ÷ n)n × t
P is the deposit, r the annual rate as a decimal, t the tenure in years, and n the number of times interest is compounded each year — four for the quarterly cycle almost every Indian bank uses. Put ₹5,00,000 in for five years at 7%. The quarterly rate is 1.75%, applied twenty times, which grows the deposit by a factor of about 1.4148. The maturity value is roughly ₹7,07,389 and the interest is ₹2,07,389.
Change nothing but the compounding cycle and the answer moves. The same deposit compounded annually matures at about ₹7,01,276 — ₹6,113 less. Compounded monthly it reaches ₹7,08,813, around ₹1,424 more than quarterly. Left as flat simple interest it pays ₹1,75,000, a full ₹32,389 behind the quarterly figure. The headline rate is identical in all four cases. This is the single most common reason a bank's maturity slip does not match a calculator someone found online: the calculator was built on annual compounding, because most of the world's are.
Quarterly compounding, and the 6-month exception
The quarterly default is not a formality. It is why a 7% FD returns rather more than 7% a year in practice — the effective annual yield on quarterly compounding at 7% is about 7.19%. Over a long tenure that gap accumulates into real money, which is why the compounding frequency is worth checking before the headline rate.
Below 6 months the rule flips. Banks pay simple interest on short deposits, because there has not been a full compounding cycle to speak of. A three-month deposit of ₹5,00,000 at 7% earns ₹8,750 and nothing more; there is no quarter-on-quarter growth to capture. The calculator applies this automatically, so a short tenure will ignore whatever compounding option you have selected. It is worth knowing before you split a large sum into several short deposits chasing flexibility — the flexibility is real, the compounding is not.
Tax on FD interest: your slab, every year
Fixed deposit interest gets no concessional treatment. There is no indexation, no long-term rate, no equity-style exemption. It is added to your total income and taxed at your marginal slab, plus 4% cess. At the top slab that means an effective 31.2% on every rupee of interest. The ₹2,07,389 in the worked example above becomes about ₹1,42,684 after tax — turning a 7% deposit into a 5.15% one. Run that against inflation before deciding an FD is the safe option.
The mechanic that catches people is when the tax falls due. Interest on a cumulative FD is taxable on accrual, year by year, even though the bank pays you nothing until maturity. The bank reports each year's accrued interest, and it lands in your Annual Information Statement for that year. Taxpayers who assume the whole thing is taxed in the maturity year report nothing for four years, then a large sum in the fifth, and receive a mismatch communication for each of the four. The year-by-year table in the calculator above is the figure the department expects to see; it is there so you can reconcile against your AIS rather than guess.
Deductions are thin. The senior citizens' deposit-interest deduction, familiar as section 80TTB, is worth up to ₹50,000 and does cover fixed deposits; the one familiar as section 80TTA gives everyone else up to ₹10,000, but only against savings account interest, not FD interest. Those section numbers belong to the Income-tax Act, 1961, which was repealed with effect from 1 April 2026 — the reliefs carry into the Income-tax Act, 2025 renumbered, so treat the old labels as shorthand rather than a current citation. Both live in the old regime only. If you are on the new regime, which is the default, neither is available to you and the full interest is taxable.
TDS is an advance, not the bill
Banks deduct tax at source once the interest they pay or credit you crosses a threshold in a financial year: ₹50,000 for most depositors and ₹1,00,000 for senior citizens, both raised with effect from 1 April 2025. The rate is 10%, or 20% where the bank does not have your PAN. The threshold applies per bank, aggregated across every deposit you hold there, which is why a spread of small FDs at one bank does not dodge it.
Two things follow. First, TDS being deducted does not settle your liability — if you are in the 30% bracket, 10% withheld leaves the rest to pay as advance or self-assessment tax. Second, TDS not being deducted does not make the interest tax-free. A ₹5,00,000 deposit at 7% never accrues more than about ₹47,400 in any single year, so it stays under the general threshold for its whole life — and every rupee of it is still taxable and still has to be declared. An ₹8,00,000 deposit at the same rate crosses the threshold in year one.
If your total income genuinely falls below the taxable line, you can ask the bank not to deduct. From 1 April 2026, Form 121 replaced Forms 15G and 15H for this purpose. The eligibility test is stricter than the folklore around it: both age groups must have a nil estimated tax liability and total income below the basic exemption limit. Senior citizens do not get an exemption from the income condition, despite this being one of the most widely repeated errors in Indian personal finance writing. Filing the declaration when you do not qualify is a false declaration, not a shortcut.
The ₹5,00,000 that covers principal and interest together
Deposit insurance covers ₹5,00,000 per depositor per bank. Two details do the damage. The cover is per bank, not per branch or per account, so four deposits at four branches of one bank are one exposure. And it covers principal plus accrued interest combined — a ₹5,00,000 deposit is already at the ceiling on day one, and every rupee of interest it earns from then on is uninsured. If safety is the reason you chose an FD, the practical ceiling per bank is meaningfully below ₹5,00,000, not at it.
What this calculator cannot tell you
It cannot tell you what happens if you break the deposit. Premature withdrawal typically means the bank reprices the deposit to the rate that applied for the period you actually held it, then levies a penalty on top — the size varies by bank and by product, and some deposits carry no penalty at all. Read the terms before you book, not when you need the money.
It also cannot tell you what rate you will get. Rates are set by each bank, vary by tenure in ways that are rarely smooth, and often carry a premium for senior citizens. Nothing on this page quotes a bank's rate, because any figure published here would be stale within weeks. Nor does it model renewal: an auto-renewed deposit rolls over at whatever the bank is offering on that day, which may be well below what you locked in five years earlier. And it says nothing about whether a fixed deposit is the right home for the money — only what this one will pay if you leave it alone.
Common questions
Why is my bank’s maturity figure a few rupees different from this one?
Three small things move it. Banks compound on their own quarter ends rather than on the anniversary of your deposit, so your first quarter is often short or long by a few days. They compute the tenure in days, not in tidy fractions of a year. And a deposit booked for an odd term — 444 days, say — earns simple interest on the stub period left over after the last full quarter. The gap is usually tens of rupees on a ₹5 lakh deposit, not thousands. If it is thousands, you have probably been quoted a different rate from the one you entered.
Do I owe tax on interest I have not actually received yet?
On a cumulative FD, yes. Interest is taxed as it accrues each year, even though the bank pays nothing out until maturity. Your Annual Information Statement will show that year's accrued interest, and if you report nothing against it because no money reached your account, you get a mismatch notice. You may instead offer the interest in the year you actually receive it, but only by following the cash method for interest income consistently rather than switching to suit one deposit — and bunching five years of interest into a single year usually pushes you into a higher slab, so it rarely helps.
My bank deducted TDS but my income is below the exemption limit. What do I do?
You claim it back when you file. TDS is an advance payment sitting against your PAN, not a final tax, and it appears in your Form 26AS and AIS as credit. To stop it happening again, file Form 121 with the bank — it replaced Forms 15G and 15H from 1 April 2026. Be careful with the eligibility: both age groups must have a nil estimated tax liability and total income below the basic exemption limit. There is no separate income-ceiling exemption for senior citizens, whatever a great deal of published advice still says.
Should I split a large deposit across several banks?
If keeping the money safe matters more than shaving a decimal point off the rate, yes. Deposit insurance covers ₹5,00,000 per depositor per bank, and that ceiling covers principal and accrued interest together, across every account you hold at that bank. Splitting across branches of the same bank achieves nothing — the limit is per bank. Splitting across different banks, or holding some deposits in different name combinations, genuinely does raise the insured amount.
Cumulative or monthly payout — which pays more?
Cumulative pays more in absolute terms, because the interest stays in the deposit and earns interest itself. A payout FD hands the interest to you every month or quarter and the balance never grows, so you earn the simple-interest equivalent. The tax bill is the same either way, since accrual is what triggers it. Choose the payout version because you need the income, not because you think it is being taxed more kindly.
Is a tax-saving FD a better deal than an ordinary one?
It carries a 5-year lock-in with no premature withdrawal and no loan against it, in exchange for a deduction that is available only under the old regime. If you are on the new regime — the default — the deduction does nothing for you, and you have accepted the lock-in for nothing. The interest is taxed exactly like any other FD interest either way. Check which regime you are actually on before booking one.
Sources
Rates and rules on this page were read directly from the following sources on the dates shown. Figures change — if you are about to act on one, confirm it at the source.