Calculate exactly how much your fixed deposit will grow to — with quarterly, monthly or annual compounding.
A Fixed Deposit (FD) is the most popular savings instrument in India with over ₹180 lakh crore in deposits. This calculator shows your exact maturity value, interest earned, and post-tax returns — because FD interest is fully taxable at your income slab rate, your real returns are lower than the advertised rate.
Yes. FD interest is added to your total income and taxed at your income tax slab rate. Banks deduct TDS at 10% if annual interest exceeds ₹40,000 (₹50,000 for senior citizens). If you're in the 30% slab, your effective return is significantly lower than the advertised rate.
Small finance banks like AU Small Finance Bank, Unity Small Finance Bank, and Jana Small Finance Bank offer 8.5–9.5% FD rates for seniors. However, these are DICGC insured only up to ₹5 lakh — spread deposits across banks if you have more.
Yes, but premature withdrawal typically attracts a 0.5–1% interest penalty. Most banks pay the rate applicable for the completed period minus penalty. Liquid mutual funds are a better option if you need flexibility.
Cumulative FDs reinvest interest and pay maturity proceeds at the end. Non-cumulative FDs pay interest periodically (monthly, quarterly, annually) — useful for retirees who need regular income.
Banks aggregate all your FDs across branches and deduct TDS at 10% if total interest exceeds ₹40,000/year. Submit Form 15G (or 15H for seniors) to avoid TDS if your total income is below the taxable limit.
For a 30% slab taxpayer over 3+ years: Debt mutual funds (taxed at slab rate) and PPF (tax-free at 7.1%) often outperform FDs after tax. For safety-first investors who need liquidity, FDs are still the most straightforward choice.
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A Fixed Deposit (FD) is the most popular safe investment in India — a lump sum deposited with a bank for a fixed term at a guaranteed interest rate. FD interest rates in 2025-26 range from 6.5% to 9% p.a. depending on the bank and tenure, with small finance banks typically offering 0.5–1.5% more than major banks. The critical tax fact: FD interest is fully taxable as income. At 30% tax bracket, a 7% FD delivers only 4.9% post-tax — often below inflation.
FD compounding options: annual (most common), quarterly (gives slightly higher maturity), monthly, and cumulative (reinvests all interest for maximum compounding). TDS of 10% is deducted at source on FD interest above ₹40,000/year (₹50,000 for senior citizens). Submit Form 15G/15H if your total income is below the taxable limit to avoid TDS deduction.