Calculate the maturity value, interest earned and post-tax returns on your Fixed Deposit with support for different compounding frequencies and tax slabs.
Deposit Details
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Results
Maturity Amount
₹0
Total Interest Earned
₹0
Post-Tax Interest
₹0
Effective Yield
0%
How Fixed Deposit Interest Works
Banks compound FD interest at a set frequency (quarterly is most common in India). The formula used is A = P × (1 + r/n)nt, where P is the principal, r is the annual rate, n is the compounding frequency per year, and t is the tenure in years. More frequent compounding results in slightly higher effective returns. Interest earned on FDs is fully taxable under "Income from Other Sources" as per your income tax slab.
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Most banks allow premature withdrawal of fixed deposits, but they impose a penalty — typically 0.5% to 1% reduction on the applicable interest rate. For example, if your FD earns 7% p.a. and you break it after 2 years, the bank may pay the 2-year rate minus the penalty. Some banks also offer a no-penalty premature withdrawal facility on specific FD products, so check with your bank before booking.
How is interest on Fixed Deposits taxed in India?
FD interest is fully taxable and added to your total income under "Income from Other Sources." Banks deduct TDS at 10% if total interest across all branches exceeds ₹40,000 in a financial year (₹50,000 for senior citizens). If you do not have a PAN, TDS is deducted at 20%. You can claim TDS credit while filing your ITR and pay the differential tax based on your actual slab rate.
Do senior citizens get higher FD interest rates?
Yes. Most Indian banks offer an additional 0.25% to 0.75% interest rate for senior citizens (aged 60 and above) on fixed deposits. Some banks also have super senior citizen (80+) categories with even higher rates. The higher TDS threshold of ₹50,000 (instead of ₹40,000) also applies to senior citizens, providing additional tax relief.
FD vs Debt Mutual Fund — which gives better post-tax returns?
After the 2023 tax rule changes, gains from debt mutual funds are taxed at your income tax slab rate regardless of the holding period, similar to FD interest. However, debt funds still offer potential advantages: higher pre-tax returns in a falling interest rate environment (due to mark-to-market gains), better liquidity with no lock-in, and the flexibility to defer taxation until redemption. FDs, on the other hand, offer guaranteed returns and capital safety, making them suitable for conservative investors.
Are bank Fixed Deposits safe? What is DICGC insurance?
Bank FDs are among the safest investment instruments in India. The Deposit Insurance and Credit Guarantee Corporation (DICGC), a subsidiary of the RBI, insures deposits up to ₹5,00,000 per depositor per bank. This covers principal and interest across all branches of a bank. To maximise coverage, you can spread large deposits across multiple banks so that each stays within the ₹5 lakh insurance limit.