FD Calculator

Fixed Deposit maturity uses compound interest: A = P × (1 + r/n)^(n×t). Indian banks default to quarterly compounding (n = 4) — your interest is added to principal every 3 months, then the next quarter's interest is calculated on the slightly larger balance. Over a 5-year tenure, quarterly compounding produces about 0.4% more than yearly compounding at the same nominal rate.

Senior citizens (60+) typically get 0.50% higher interest than regular customers across SBI, HDFC, ICICI, Axis, and most public-sector banks. Super senior citizens (80+) get an additional 0.25% at some banks. The senior rate is published as a separate FD card rate; the calculator applies your chosen rate as-is, so use the senior rate directly when applicable.

Tax-Saver FDs have a 5-year lock-in and qualify for Section 80C deduction up to ₹1.5 lakh — but the interest earned is fully taxable. For pure tax efficiency, PPF (EEE, 7.1%) and ELSS mutual funds (LTCG only above ₹1.25L per year) typically beat tax-saver FDs after tax.

Banks deduct TDS at 10% on FD interest if your total interest from all FDs at that bank crosses ₹40,000 per financial year (₹50,000 for senior citizens). The TDS is not a final tax — it is an advance payment that adjusts against your final tax liability when you file ITR.

If your total taxable income is below the basic exemption limit (₹2.5L below 60, ₹3L for senior, ₹5L super senior), submit Form 15G (under 60) or Form 15H (60+) to your bank at the start of each financial year. The bank then stops deducting TDS. Misuse — submitting 15G/H when you actually owe tax — can attract penalty.

TDS rate jumps to 20% if PAN is not provided or invalid. Always verify your PAN is updated in the bank's records, especially for FDs opened years ago. Inheriting an FD without updating PAN can cause unexpected 20% TDS until you fix it.

FD wins on safety and predictability — DICGC insures up to ₹5 lakh per depositor per bank. FD loses on post-tax return: a 7.5% FD at the 30% slab effectively returns ~5.25% post-tax, barely beating typical 5-6% inflation. Use FD for emergency funds, short-term goals (under 3 years), and senior citizen income.

PPF (7.1%, EEE tax-free, 15-year lock-in) beats FD on every metric for long-term safe savings. NSC (5-year, 7.7%, only principal qualifies for 80C) is similar to tax-saver FD. ELSS mutual funds (3-year lock-in, 12% historical return) crush FDs over 5+ year horizons but carry equity risk.

Smart allocation: keep 6 months of expenses in FD/RD for emergencies, route long-term tax-saving (₹1.5L 80C) through PPF + ELSS, and use FD only for goal-specific short-term parking where capital preservation matters more than return.