FD Calculator

Use this free FD Calculator with tax to find the maturity amount and interest you will earn on a bank fixed deposit, and how much you actually keep after income tax. Choose quarterly, monthly, half-yearly or yearly compounding, pick your tax slab, and see your post-tax maturity, post-tax return and a TDS alert. Everything is calculated on your phone, so your numbers stay private.

What is a fixed deposit?

A fixed deposit (FD) is a deposit where you keep a lump sum with a bank for a fixed period, from 7 days to 10 years, at an interest rate that is fixed on the day you open it. Whatever happens to interest rates later, your FD rate does not change until maturity. This makes FDs one of the safest and most predictable ways to grow money in India.

There are two common types:

• Cumulative FD – interest is added back to your deposit and compounded. You receive everything at maturity. This calculator is for cumulative FDs.
• Non-cumulative FD – interest is paid to your savings account monthly or quarterly. Useful for regular income, especially for retired people.

How is FD interest calculated?

Most Indian banks compound FD interest quarterly. The formula is:

A = P × (1 + r/n)^{n × t}

• A = maturity amount
• P = amount deposited
• r = annual interest rate (as a decimal, so 7% = 0.07)
• n = number of times interest is compounded in a year (4 for quarterly)
• t = tenure in years

Example

You deposit ₹1,00,000 for 5 years at 7% per year, compounded quarterly:

• A = 1,00,000 × (1 + 0.07/4)²⁰
• Maturity amount = ₹1,41,478
• Interest earned = ₹41,478

For very short deposits (usually under 6 months), banks generally pay simple interest instead. The calculator handles this automatically.

How your FD grows over time

₹1,00,000 at 7% a year, compounded quarterly:

Tenure	Maturity amount	Interest earned
1 year	₹1,07,186	₹7,186
2 years	₹1,14,888	₹14,888
3 years	₹1,23,144	₹23,144
5 years	₹1,41,478	₹41,478
10 years	₹2,00,160	₹1,00,160

At 7%, your money roughly doubles in about 10 years.

Does compounding frequency matter?

A little. Here is ₹1,00,000 at 7% for 5 years with different compounding:

Compounding	Maturity amount
Yearly	₹1,40,255
Half-yearly	₹1,41,060
Quarterly	₹1,41,478
Monthly	₹1,41,763

The difference is small. The interest rate and the tenure matter far more than the compounding frequency. That is why the calculator also shows the effective annual yield, which lets you compare two FDs fairly.

Is your FD safe?

Bank deposits in India are insured by the DICGC (a subsidiary of the RBI) up to ₹5 lakh per depositor per bank, covering principal and interest together. If you have more than this, you can spread your deposits across different banks. Please check the DICGC website for the latest limit.

FD interest tax: how much do you really keep?

FD interest is fully taxable. It is added to your income and taxed at your slab rate, plus 4% health and education cess. There is no special lower rate for FD interest.

Your tax slab	Tax on ₹41,478 interest*	Maturity after tax	Post-tax return
0%	₹0	₹1,41,478	7.19%
10%	₹4,314	₹1,37,164	6.52%
20%	₹8,627	₹1,32,851	5.85%
30%	₹12,941	₹1,28,537	5.15%

*₹1,00,000 for 5 years at 7%, compounded quarterly, with 4% cess. Simplified: tax applied on the total interest.

So a “7% FD” gives someone in the 30% slab only about 5.15% a year after tax. If inflation is around 5–6%, the real growth is close to zero. That is why FDs are best for safety and short-term goals, while long-term wealth usually needs other options too.

When is FD interest taxed?

Even in a cumulative FD, where you receive the interest only at maturity, interest is generally taxed every year as it is earned, not only at the end. Banks also deduct TDS year by year. Your Form 26AS / Annual Information Statement shows the interest and TDS for each year.

TDS on FD interest

• Banks deduct TDS at 10% (if your PAN is linked) when your total interest from that bank in a financial year crosses ₹50,000, or ₹1,00,000 for senior citizens. A higher rate applies if PAN is not available.
• The limit counts all your FDs and RDs in the same bank, across branches.
• TDS is not the final tax. If your slab is 20% or 30%, you must pay the balance when filing your return. If your slab is 0%, you can claim the TDS back as a refund.
• From 1 April 2026, under the new Income-tax Act, 2025, the self-declaration Form 121 replaces Forms 15G and 15H. If your total income is below the taxable limit, you can submit it to your bank to avoid TDS.

Tax rules change from time to time, so please confirm current limits with your bank or a tax advisor.

How to reduce tax on FD interest

• Split deposits across family members with lower incomes, as per tax rules, so interest is taxed at their lower slab.
• Senior citizens get a higher TDS limit and usually a higher FD rate.
• Tax-saving FDs (5-year lock-in) may give a deduction under the old tax regime, but their interest is still taxable.
• Compare post-tax returns, not headline rates, when choosing between FD and other options.

Banker’s tips to earn more from FDs

• Compare rates. Rates differ between banks and between tenures. Sometimes a 2-year FD pays more than a 5-year FD.
• Use FD laddering. Instead of one big FD, split it into 3–4 FDs maturing in different years. You get regular liquidity and protection from rate changes.
• Senior citizens get more. Most banks pay 0.25% to 0.50% extra to depositors aged 60 and above.
• Avoid premature withdrawal. Breaking an FD early usually attracts a penalty and a lower rate. Take a loan against your FD instead if you need short-term money.
• Add a nominee. Always register a nominee so your family can claim the money easily.

Frequently asked questions

Related calculators

• RD Calculator – save a fixed amount every month
• SIP Calculator – grow your money through mutual funds
• Compare Investments – FD vs RD vs SIP side by side