🇮🇳 India
Fixed Deposit (FD) Calculator
The FD calculator estimates fixed deposit maturity amount, interest earned, post-TDS interest, and effective annual yield for Indian bank deposits. Enter principal, interest rate, tenure, compounding frequency, and TDS preference to compare cumulative and simple-interest outcomes. The chart compares FD growth with an assumed 6% inflation line so you can judge both nominal safety and real purchasing power over the deposit period.
How to use
- Enter the deposit amount you plan to place in the FD.
- Type the annual FD interest rate quoted by the bank or NBFC.
- Enter tenure using years and months together.
- Choose quarterly compounding for most Indian cumulative bank FDs, or simple interest for payout-style comparison.
- Select whether TDS should be estimated and review maturity amount, interest, post-TDS interest, and yield.
Formula
Simple FD: Interest = P × r × t
Effective yield = (A / P)1/t − 1
For a cumulative fixed deposit, interest is added back to the deposit at the chosen compounding frequency. Quarterly compounding is common for Indian bank FDs, so the annual rate is divided by four and applied for each completed quarter-equivalent period. Monthly, half-yearly, and annual compounding follow the same structure with different compounding counts. Simple interest does not add interest back to principal and is useful for comparing payout deposits.
The calculator estimates TDS at 10% when total interest crosses the common non-senior threshold of ₹40,000 in a financial year. TDS is not the final tax. FD interest is added to income and taxed at the slab rate, so a person in the 20% or 30% slab may owe additional tax after TDS, while a person below taxable income may submit Form 15G or 15H if eligible.
Worked example
A ₹5,00,000 FD at 7.25% for 3 years with quarterly compounding grows to about ₹6,20,160.
Total interest is about ₹1,20,160. If 10% TDS applies, tax deducted is about ₹12,016 and post-TDS interest received is about ₹1,08,144.
The interest still has to be reported in the income tax return.
Indicative FD rates at major Indian banks
| Bank | General public | Senior citizen | Notes |
|---|---|---|---|
| SBI | 6.50% to 7.25% | Usually +0.50% | Tenure dependent |
| HDFC Bank | 6.60% to 7.35% | Usually +0.50% | Indicative retail range |
| ICICI Bank | 6.60% to 7.25% | Usually +0.50% | Tenure dependent |
| Axis Bank | 6.70% to 7.30% | Usually +0.50% | Promotional tenures vary |
| Kotak Mahindra Bank | 6.50% to 7.40% | Usually +0.50% | Indicative only |
| Bank of Baroda | 6.50% to 7.25% | Usually +0.50% | Public sector bank |
| Canara Bank | 6.40% to 7.25% | Usually +0.50% | Tenure dependent |
| Punjab National Bank | 6.40% to 7.25% | Usually +0.50% | Check current card rate |
Senior citizen FD rates
Senior citizens generally receive an extra 0.50% per year on many bank FD tenures. Some banks also offer special senior or super-senior products with different rates and conditions. The extra rate improves maturity value, but interest remains taxable unless a specific exemption applies.
Tax and premature withdrawal
FD interest is taxed under income from other sources at your slab rate. Banks deduct TDS when interest crosses threshold rules, but TDS does not settle the final liability. Premature withdrawal can reduce the applicable rate and may attract a penalty, often 0.50% to 1.00%. Compare liquidity needs before locking money for long tenures.
Using this result in India
This Fixed Deposit (FD) Calculator is designed as a planning and audit tool, not as a substitute for the original Indian document that controls the transaction. For tax pages, that controlling document may be the Income-tax Act, Finance Act, Form 16, Form 26AS, AIS, challan, or employer declaration. For loan and investment pages, it may be the bank sanction letter, mutual fund scheme document, policy statement, EPFO passbook, NPS statement, or small-savings notification. For state-level pages, it may be a state transport, registration, electricity, or revenue department order. Use the calculator to understand scale, direction, and line-item logic before you rely on the official document.
Indian financial decisions are sensitive to timing. A rate that is correct for FY 2024-25 may not be correct for FY 2025-26. A monthly salary figure may not include bonus, arrears, reimbursements, or employer contributions. A property or vehicle quote may include charges that are negotiable, optional, or state-specific. A bank rate may be floating and linked to an external benchmark. Re-run the calculator when any input changes, and compare at least three scenarios: conservative, expected, and high-cost or low-return.
When the output is a large rupee amount, read it in both exact Indian notation and practical language. ₹10,00,000 is 10 lakhs, ₹1,00,00,000 is 1 crore, and small percentage changes can move the result by many lakhs on long tenures or high-value purchases. Keep screenshots or downloaded statements from the official portal, preserve invoices and receipts, and reconcile calculator output with the final bill, return, or statement before making a payment, filing a return, or signing a contract.
If you share the result with a family member, accountant, lender, employer, dealer, or broker, share the inputs too. Most disagreements come from different assumptions, not from the arithmetic.
FAQ
How is FD interest calculated?
Cumulative FD interest is usually compounded quarterly in India. The rate is applied periodically and added to principal until maturity.
Is FD interest taxable?
Yes. FD interest is added to your income and taxed at your slab rate, even when the bank has already deducted TDS.
What is TDS on FD?
TDS is tax deducted by the bank when interest crosses threshold limits. For many resident individuals it is 10% if PAN is available.
What is cumulative vs non-cumulative FD?
Cumulative FDs pay principal plus compounded interest at maturity. Non-cumulative FDs pay interest monthly, quarterly, half-yearly, or annually.
Is FD safe?
Bank FDs are relatively low-risk, and deposits are insured by DICGC up to the applicable limit per depositor per bank, but interest-rate and inflation risk remain.
Important notes for India
- FD rate cards change often; verify the rate on the bank website before booking.
- Senior citizen thresholds and TDS rules can differ from non-senior depositors.
- TDS is not final tax; report FD interest in your income tax return.
- Premature withdrawal may reduce the contracted rate and add a penalty.