Fixed Deposit (FD) Calculator

Fixed Deposits (FDs) remain one of the most trusted savings instruments in India, offering capital safety and guaranteed interest returns. In the Indian commercial banking sector, term deposit interest is typically compounded on a quarterly basis, which produces an effective annual yield higher than the stated nominal interest rate.

The FinToolkit Fixed Deposit Calculator computes your exact maturity proceeds, total interest earned, and effective yield across standard compounding frequencies (quarterly, monthly, half-yearly, or annually).

How bank fixed deposit interest compounds

Fixed deposit maturity value is calculated using the standard compound interest formula:

Worked calculation example

Consider depositing ₹5,00,000 in a 5-year bank fixed deposit at an interest rate of 7.00% per annum, compounded quarterly (n = 4).

Because interest compounds every quarter, the deposit earns interest on interest, resulting in an effective annual yield of 7.19% compared to the nominal 7.00% headline rate.

Tax rules on fixed deposit interest (TDS & Section 80TTB)

• Taxed at slab rates: Fixed deposit interest is fully taxable under "Income from Other Sources" at your applicable income tax slab rate (up to 30% plus cess).
• TDS threshold (Section 194A): Banks deduct 10% Tax Deducted at Source (TDS) if total interest earned across all branches of a bank exceeds ₹40,000 in a financial year for regular individuals (₹50,000 for senior citizens). If PAN is not provided, TDS is deducted at 20%.
• Form 15G / 15H: If your total taxable income is below the basic exemption limit, you can submit Form 15G (or Form 15H for senior citizens) to prevent TDS deduction.
• Senior Citizen exemption (Section 80TTB): Resident senior citizens (aged 60+) can claim a deduction of up to ₹50,000 on interest earned from bank and post office deposits under the old tax regime.

Frequently asked questions

Do senior citizens get higher FD interest rates?

Yes. Most Indian commercial banks offer senior citizens (aged 60 and above) an additional 0.50% interest rate across tenures, and some banks offer "super senior" rates (0.75% extra) for citizens aged 80 and above.

Can I break a fixed deposit before maturity?

Yes. Most banks permit premature withdrawal, but charge a penalty—typically 0.50% to 1.00% reduction in the applicable interest rate for the period the deposit was actually held. Five-year tax-saving FDs (under Section 80C) carry a mandatory 5-year lock-in and cannot be prematurely closed.

Is my bank fixed deposit safe?

Bank deposits in India (including principal and accrued interest) are insured up to ₹5,00,000 per depositor per bank by the Deposit Insurance and Credit Guarantee Corporation (DICGC), a wholly-owned subsidiary of the RBI.

Does an FD beat inflation after taxes?

For an individual in the 30% tax bracket, a 7% FD delivers a post-tax return of approximately 4.9%. If retail inflation runs at 6%, the real purchasing power of the deposit declines by about 1.1% per year. Check real returns with our Inflation Calculator.

Related savings calculators

• Recurring Deposit (RD) Calculator — model periodic monthly savings into bank deposits.
• Savings Account Interest Calculator — calculate daily balance interest earnings on liquid savings.
• Inflation Calculator — evaluate post-tax real returns of fixed deposits against rising living costs.
• PPF Calculator — compare FDs against the tax-free Public Provident Fund.