π Fixed Deposit
FD Calculator
Calculate Maturity Amount, Interest & Real Returns on Fixed Deposits
Instantly compute your FD maturity value for any compounding frequency β monthly, quarterly, half-yearly, or annually. Compare banks, factor in tax and inflation, and see the true real return on your deposit.
Maturity AmountCompound InterestTax on FD
Real ReturnCompare BanksSenior Citizen Rate
QUICK SCENARIOS:
Fixed Deposit Calculator
Principal Amount
Amount you want to deposit
βΉ
βΉ10KβΉ1Cr
Annual Interest Rate
Bank's FD rate
%
4%12%
Tenure
Duration of the deposit
yr
3 mo20 yr
Compounding Frequency
Tax & Inflation
Tax Slab
For TDS & after-tax return
%
0%42%
Inflation Rate
For real return calculation
%
0%15%
Principal Amount
Same for all banks
βΉ
βΉ10KβΉ1Cr
Tenure
Same for all banks
yr
3 mo20 yr
Bank Interest Rates
BankRate (%)Type
π SBI
%
Genπ HDFC
%
Genπ ICICI
%
Genπ Axis
%
Genπ Kotak
%
Genπ Small Fin
%
SFPrincipal Amount
βΉ
βΉ10KβΉ1Cr
Interest Rate
%
4%12%
Tenure
yr
3 mo20 yr
Tax Slabs to Compare
0% β No Tax (LTCG exempt)
%
5% β Low Income
%
20% β Middle Income
%
30% β High Income
%
42.74% β Surcharge
%
Inflation for Real Returns
Inflation Rate
%
FD Summary
π
Maturity Amount
β
β
Total Interest
β
β
Effective Annual Yield
β
β
Principal vs Interest Earned
β
gain
Principal
βInterest Earned
βTax Deducted
βπ Real Return (Inflation-Adjusted)
Nominal Returnβ
Tax Paidβ
Inflation Erosionβ
Real Net Returnβ
Maturity Amount
β
β
Total Interest
β
β
Post-Tax Maturity
β
β
Real Return
β
after tax & inflation
Year-wise Growth of FD
Principal
Interest
Tax
π Year-wise FD Breakdown
How is FD Interest Calculated?
A Fixed Deposit (FD) earns interest that is compounded at a specific frequency β monthly, quarterly, half-yearly, or annually. The more frequent the compounding, the higher the effective yield, even at the same stated rate. Most Indian banks compound FD interest quarterly by default.
Compound Interest FD:
A = P Γ (1 + r/n)nΓt
Simple Interest FD:
A = P Γ (1 + r Γ t)
Effective Annual Yield (EAY) = (1 + r/n)n β 1
Real Return = [(1 + Nominal Rate) Γ· (1 + Inflation)] β 1
Where: P = Principal Β r = Annual rate Β n = Compounding frequency Β t = Tenure in years
A = P Γ (1 + r/n)nΓt
Simple Interest FD:
A = P Γ (1 + r Γ t)
Effective Annual Yield (EAY) = (1 + r/n)n β 1
Real Return = [(1 + Nominal Rate) Γ· (1 + Inflation)] β 1
Where: P = Principal Β r = Annual rate Β n = Compounding frequency Β t = Tenure in years
FD Maturity for βΉ5 Lakh at Various Rates & Tenures (Quarterly Compounding)
| Rate | 1 Year | 3 Years | 5 Years | 10 Years |
|---|---|---|---|---|
| 6.5% | βΉ5,33,316 | βΉ6,04,516 | βΉ6,84,503 | βΉ9,36,887 |
| 7.0% | βΉ5,36,239 | βΉ6,13,619 | βΉ7,01,765 | βΉ9,83,028 |
| 7.5% | βΉ5,38,978 | βΉ6,22,788 | βΉ7,19,422 | βΉ10,32,116 |
| 8.0% | βΉ5,41,536 | βΉ6,32,024 | βΉ7,37,479 | βΉ10,83,227 |
| 8.5% | βΉ5,44,020 | βΉ6,41,328 | βΉ7,55,939 | βΉ11,36,439 |
FD vs Other Fixed Income Options
| Instrument | Typical Rate | Tax | Lock-in | Safety |
|---|---|---|---|---|
| Bank FD | 6.5%β8.5% | At slab rate | Premature exit with penalty | DICGC cover up to βΉ5L |
| PPF | 7.1% (tax-free) | Fully exempt (EEE) | 15 years | Sovereign guarantee |
| NSC | 7.7% | Taxable at maturity | 5 years | Sovereign guarantee |
| Senior Savings Scheme | 8.2% | Taxable | 5 years (extendable) | Sovereign guarantee |
| RBI Floating Rate Bond | 8.05% (reset every 6m) | Taxable | 7 years | Sovereign guarantee |
| Debt Mutual Fund | 6%β8% (varies) | STCG/LTCG as per slab | No lock-in | Market risk, no guarantee |
Frequently Asked Questions
Is FD interest taxable in India?βΌ
Yes. FD interest is added to your total income and taxed at your applicable income tax slab rate. Banks deduct TDS at 10% if interest exceeds βΉ40,000 per year (βΉ50,000 for senior citizens). If your total income is below the taxable limit, you can submit Form 15G (or 15H for seniors) to prevent TDS deduction. Note: Even if TDS is deducted, you must declare the full interest in your ITR and pay any additional tax if your slab rate is higher than 10%.
What is the difference between compounding frequency?βΌ
The more frequent the compounding, the higher the effective return. At 7% for 5 years on βΉ5 lakhs: Simple interest gives βΉ1,75,000 interest. Annual compounding gives βΉ2,01,770. Quarterly compounding gives βΉ2,01,765. Monthly compounding gives βΉ2,02,273. The difference between quarterly and monthly is small, but the gap between simple interest and quarterly compounding is significant over long tenures. Most Indian bank FDs use quarterly compounding.
Should senior citizens use regular FDs or SCSS?βΌ
The Senior Citizen Savings Scheme (SCSS) currently offers 8.2% p.a. with a 5-year lock-in, extendable by 3 years. The maximum investment is βΉ30 lakhs per person. Most senior-citizen FD rates from major banks range from 7.5% to 8.0%. SCSS is backed by the government (sovereign guarantee), making it safer than even DICGC-insured FDs. For amounts up to βΉ30 lakhs, SCSS is generally superior to bank FDs for senior citizens. For amounts above that, split between SCSS and FDs.
What is the real return on FDs after inflation?βΌ
The real return is calculated as: Real Return = [(1 + After-tax Rate) Γ· (1 + Inflation Rate)] β 1. At 7% FD, 30% tax slab, and 5% inflation: After-tax rate = 7% Γ 0.70 = 4.9%. Real return = [(1.049) Γ· (1.05)] β 1 = β0.095% β essentially zero. For a 20% tax payer: After-tax = 5.6%, Real return β 0.57%. This illustrates why FDs are primarily capital preservation tools for taxpayers in the 30% bracket, rather than wealth creators.
Is it better to break an FD early or take a loan against it?βΌ
Banks typically charge a 0.5β1% penalty for premature FD closure. Taking a loan against FD (OD/loan against FD) costs 1β2% above the FD rate. If you need funds for a short period (1β3 months), a loan against FD is usually cheaper β you preserve the FD and pay interest only for the duration. If you need funds for longer than 6 months, breaking the FD may be cost-effective. Always compare: (Penalty of breaking early) vs (Loan interest for duration needed). Note that for tax-saving FDs (Section 80C), premature closure is not allowed before 5 years.
π Fixed Deposit
FD Calculator
Calculate Maturity Amount, Interest & Real Returns on Fixed Deposits
Instantly compute your FD maturity value for any compounding frequency β monthly, quarterly, half-yearly, or annually. Compare banks, factor in tax and inflation, and see the true real return on your deposit.
Maturity AmountCompound InterestTax on FD
Real ReturnCompare BanksSenior Citizen Rate
QUICK SCENARIOS:
Fixed Deposit Calculator
Principal Amount
Amount you want to deposit
βΉ
βΉ10KβΉ1Cr
Annual Interest Rate
Bank's FD rate
%
4%12%
Tenure
Duration of the deposit
yr
3 mo20 yr
Compounding Frequency
Tax & Inflation
Tax Slab
For TDS & after-tax return
%
0%42%
Inflation Rate
For real return calculation
%
0%15%
Principal Amount
Same for all banks
βΉ
βΉ10KβΉ1Cr
Tenure
Same for all banks
yr
3 mo20 yr
Bank Interest Rates
BankRate (%)Type
π SBI
%
Genπ HDFC
%
Genπ ICICI
%
Genπ Axis
%
Genπ Kotak
%
Genπ Small Fin
%
SFPrincipal Amount
βΉ
βΉ10KβΉ1Cr
Interest Rate
%
4%12%
Tenure
yr
3 mo20 yr
Tax Slabs to Compare
0% β No Tax (LTCG exempt)
%
5% β Low Income
%
20% β Middle Income
%
30% β High Income
%
42.74% β Surcharge
%
Inflation for Real Returns
Inflation Rate
%
FD Summary
π
Maturity Amount
β
β
Total Interest
β
β
Effective Annual Yield
β
β
Principal vs Interest Earned
β
gain
Principal
βInterest Earned
βTax Deducted
βπ Real Return (Inflation-Adjusted)
Nominal Returnβ
Tax Paidβ
Inflation Erosionβ
Real Net Returnβ
Maturity Amount
β
β
Total Interest
β
β
Post-Tax Maturity
β
β
Real Return
β
after tax & inflation
Year-wise Growth of FD
Principal
Interest
Tax
π Year-wise FD Breakdown
How is FD Interest Calculated?
A Fixed Deposit (FD) earns interest that is compounded at a specific frequency β monthly, quarterly, half-yearly, or annually. The more frequent the compounding, the higher the effective yield, even at the same stated rate. Most Indian banks compound FD interest quarterly by default.
Compound Interest FD:
A = P Γ (1 + r/n)nΓt
Simple Interest FD:
A = P Γ (1 + r Γ t)
Effective Annual Yield (EAY) = (1 + r/n)n β 1
Real Return = [(1 + Nominal Rate) Γ· (1 + Inflation)] β 1
Where: P = Principal r = Annual rate n = Compounding frequency t = Tenure in years
A = P Γ (1 + r/n)nΓt
Simple Interest FD:
A = P Γ (1 + r Γ t)
Effective Annual Yield (EAY) = (1 + r/n)n β 1
Real Return = [(1 + Nominal Rate) Γ· (1 + Inflation)] β 1
Where: P = Principal r = Annual rate n = Compounding frequency t = Tenure in years
FD Maturity for βΉ5 Lakh at Various Rates & Tenures (Quarterly Compounding)
| Rate | 1 Year | 3 Years | 5 Years | 10 Years |
|---|---|---|---|---|
| 6.5% | βΉ5,33,316 | βΉ6,04,516 | βΉ6,84,503 | βΉ9,36,887 |
| 7.0% | βΉ5,36,239 | βΉ6,13,619 | βΉ7,01,765 | βΉ9,83,028 |
| 7.5% | βΉ5,38,978 | βΉ6,22,788 | βΉ7,19,422 | βΉ10,32,116 |
| 8.0% | βΉ5,41,536 | βΉ6,32,024 | βΉ7,37,479 | βΉ10,83,227 |
| 8.5% | βΉ5,44,020 | βΉ6,41,328 | βΉ7,55,939 | βΉ11,36,439 |
FD vs Other Fixed Income Options
| Instrument | Typical Rate | Tax | Lock-in | Safety |
|---|---|---|---|---|
| Bank FD | 6.5%β8.5% | At slab rate | Premature exit with penalty | DICGC cover up to βΉ5L |
| PPF | 7.1% (tax-free) | Fully exempt (EEE) | 15 years | Sovereign guarantee |
| NSC | 7.7% | Taxable at maturity | 5 years | Sovereign guarantee |
| Senior Savings Scheme | 8.2% | Taxable | 5 years (extendable) | Sovereign guarantee |
| RBI Floating Rate Bond | 8.05% (reset every 6m) | Taxable | 7 years | Sovereign guarantee |
| Debt Mutual Fund | 6%β8% (varies) | STCG/LTCG as per slab | No lock-in | Market risk, no guarantee |
Frequently Asked Questions
Is FD interest taxable in India?βΌ
Yes. FD interest is added to your total income and taxed at your applicable income tax slab rate. Banks deduct TDS at 10% if interest exceeds βΉ40,000 per year (βΉ50,000 for senior citizens). If your total income is below the taxable limit, you can submit Form 15G (or 15H for seniors) to prevent TDS deduction. Note: Even if TDS is deducted, you must declare the full interest in your ITR and pay any additional tax if your slab rate is higher than 10%.
What is the difference between compounding frequency?βΌ
The more frequent the compounding, the higher the effective return. At 7% for 5 years on βΉ5 lakhs: Simple interest gives βΉ1,75,000 interest. Annual compounding gives βΉ2,01,770. Quarterly compounding gives βΉ2,01,765. Monthly compounding gives βΉ2,02,273. The difference between quarterly and monthly is small, but the gap between simple interest and quarterly compounding is significant over long tenures. Most Indian bank FDs use quarterly compounding.
Should senior citizens use regular FDs or SCSS?βΌ
The Senior Citizen Savings Scheme (SCSS) currently offers 8.2% p.a. with a 5-year lock-in, extendable by 3 years. The maximum investment is βΉ30 lakhs per person. Most senior-citizen FD rates from major banks range from 7.5% to 8.0%. SCSS is backed by the government (sovereign guarantee), making it safer than even DICGC-insured FDs. For amounts up to βΉ30 lakhs, SCSS is generally superior to bank FDs for senior citizens. For amounts above that, split between SCSS and FDs.
What is the real return on FDs after inflation?βΌ
The real return is calculated as: Real Return = [(1 + After-tax Rate) Γ· (1 + Inflation Rate)] β 1. At 7% FD, 30% tax slab, and 5% inflation: After-tax rate = 7% Γ 0.70 = 4.9%. Real return = [(1.049) Γ· (1.05)] β 1 = β0.095% β essentially zero. For a 20% tax payer: After-tax = 5.6%, Real return β 0.57%. This illustrates why FDs are primarily capital preservation tools for taxpayers in the 30% bracket, rather than wealth creators.
Is it better to break an FD early or take a loan against it?βΌ
Banks typically charge a 0.5β1% penalty for premature FD closure. Taking a loan against FD (OD/loan against FD) costs 1β2% above the FD rate. If you need funds for a short period (1β3 months), a loan against FD is usually cheaper β you preserve the FD and pay interest only for the duration. If you need funds for longer than 6 months, breaking the FD may be cost-effective. Always compare: (Penalty of breaking early) vs (Loan interest for duration needed). Note that for tax-saving FDs (Section 80C), premature closure is not allowed before 5 years.