Is FD interest taxable?

Yes. FD interest is fully taxable as 'Income from Other Sources' at your income tax slab rate. Banks deduct TDS at 10% if annual interest exceeds ₹40,000 (₹50,000 for senior citizens). Submit Form 15G/15H if your total income is below the taxable limit.

Can I break an FD before maturity?

Yes, premature withdrawal is usually allowed with a penalty of 0.5–1% on the interest rate. Some banks offer no-penalty FDs at slightly lower rates.

What is a tax-saver FD?

A 5-year tax-saver FD qualifies for Section 80C deduction up to ₹1.5 lakh per year. However, it has a 5-year lock-in and cannot be broken prematurely.

FD vs PPF vs Debt mutual funds?

FD: guaranteed returns, taxable interest, flexible tenure. PPF: tax-free, 15-year lock-in, ~7.1%. Debt funds: market-linked, tax-efficient (indexation benefit was available earlier), more flexible. Choose based on lock-in tolerance and tax situation.

Should I choose cumulative or non-cumulative FD?

Cumulative FD pays all interest at maturity (compounding benefit). Non-cumulative pays interest monthly/quarterly, useful if you need regular income. For wealth building, cumulative is better.

FD Calculator

Fixed deposit maturity. Principal, rate and tenure. Annual compounding.

Gratuity PPF EPF / PF EMI SIP FD NPS Income Tax HRA Age GST Percentage BMI

How to use this calculator

1
Enter deposit amount
Enter the lump-sum principal you plan to deposit in the fixed deposit.
2
Set interest rate and tenure
Enter the annual interest rate offered by your bank and the deposit tenure in years.
3
View maturity value
See the maturity amount and total interest earned. Compare with post-tax returns based on your income tax slab.

Principal (₹)

₹

Interest rate (p.a.) %

Tenure

yrs

FD maturity

Interest earned₹ 40,255

Maturity amount₹ 1,40,255

Maturity = Principal × (1 + rate/100)^years. Assumes annual compounding. Bank rates may vary.

Quick answer

FD gives fixed-return visibility, but post-tax returns matter most. Compare maturity and after-tax outcomes before locking long tenures.

A Fixed Deposit (FD) is one of the safest investment options in India. You deposit a lump sum with a bank or NBFC for a fixed period at a pre-decided interest rate. At maturity, you receive the principal plus accumulated interest.

What is this calculator?

An FD Calculator estimates the maturity amount of your fixed deposit. Enter the deposit amount, interest rate offered by your bank, and the tenure. The calculator shows you the interest earned and the total maturity value.

Formula

For annual compounding:

Maturity = P × (1 + r)^t

For quarterly compounding (most banks use this):

Maturity = P × (1 + r/4)^(4×t)

Where P = principal, r = annual rate (decimal), t = tenure in years.

This calculator uses annual compounding for simplicity. Quarterly compounding yields slightly higher returns.

Example

Principal: ₹5,00,000, Rate: 7% p.a., Tenure: 5 years. With annual compounding: Maturity = 5,00,000 × (1.07)^5 = ₹7,01,276. Interest earned = ₹2,01,276. With quarterly compounding: Maturity = 5,00,000 × (1.0175)^20 = ₹7,09,140. Interest earned = ₹2,09,140 (₹7,864 more due to quarterly compounding).

Scenario snapshots

Near-term goal parking

Use FD for known date goals where principal stability and visibility are priority.

SIP vs FD choice

Compare post-tax FD maturity with SIP scenario ranges before final allocation.

Decision guide

Choose this when

✓You need predictable returns and low volatility for short-to-medium term goals.
✓You want to preserve principal with known maturity date.
✓You are creating a conservative allocation alongside market investments.

Pick another route when

•You are optimizing for long-term inflation-beating growth.
•You need high tax efficiency at higher slabs without post-tax erosion.
•You need frequent liquidity but are considering lock-in products.

Common mistakes to avoid

!Comparing headline FD rate without calculating post-tax return.
!Ignoring compounding frequency and premature withdrawal penalties.
!Concentrating large deposits in one bank without safety-limit planning.

Assumptions and disclaimers

Updated context: FY 2026

•Illustration uses annual compounding for simplicity on this page.
•TDS/tax slab impact is not auto-applied in maturity number.
•Offered rates can vary by tenure, bank, and customer segment.

In practice (India)

Users searching FD calculator India often want safe alternatives to SIP or debt fund volatility. This tool is useful for goal-based planning where principal protection and predictable maturity are priorities. Always compare quoted rates, compounding frequency, premature-withdrawal penalties, and institution quality.

For decision-making, evaluate FD against PPF for tax efficiency and SIP for long-horizon growth potential. The right answer depends on goal date, risk tolerance, and tax slab.

Benefits

✓Guaranteed returns: interest rate is fixed at the time of deposit.
✓DICGC insures bank FDs up to ₹5 lakh per depositor per bank.
✓Flexible tenures: 7 days to 10 years.
✓Senior citizens get 0.25–0.5% extra interest at most banks.

Related calculators and guides

Frequently Asked Questions

Is FD interest taxable?: Yes. FD interest is fully taxable as 'Income from Other Sources' at your income tax slab rate. Banks deduct TDS at 10% if annual interest exceeds ₹40,000 (₹50,000 for senior citizens). Submit Form 15G/15H if your total income is below the taxable limit.
Can I break an FD before maturity?: Yes, premature withdrawal is usually allowed with a penalty of 0.5–1% on the interest rate. Some banks offer no-penalty FDs at slightly lower rates.
What is a tax-saver FD?: A 5-year tax-saver FD qualifies for Section 80C deduction up to ₹1.5 lakh per year. However, it has a 5-year lock-in and cannot be broken prematurely.
FD vs PPF vs Debt mutual funds?: FD: guaranteed returns, taxable interest, flexible tenure. PPF: tax-free, 15-year lock-in, ~7.1%. Debt funds: market-linked, tax-efficient (indexation benefit was available earlier), more flexible. Choose based on lock-in tolerance and tax situation.
Should I choose cumulative or non-cumulative FD?: Cumulative FD pays all interest at maturity (compounding benefit). Non-cumulative pays interest monthly/quarterly, useful if you need regular income. For wealth building, cumulative is better.

This calculator uses annual compounding. Most banks compound quarterly, so actual maturity may be slightly higher. Check with your bank for exact rates.