🏦 Free Online Tool · All Banks · FY 2025-26
Fixed Deposit Calculator
FD Maturity · Interest · TDS · Payout
Calculate your FD maturity amount, total interest earned, effective rate and TDS impact — for all compounding frequencies, monthly/quarterly payout plans and senior citizen rates.
🔄 FD Compound Interest Calculator
FD Principal Amount
₹1K₹5Cr
Annual Interest Rate
2%12%
Tenure
7 Days10 Yrs
Compounding Frequency
Senior Citizen (extra 0.5%)
Deduct TDS (10% on interest)
Principal Amount₹5,00,000
Total Interest Earned₹1,14,907
TDS Deducted (10%)₹0
Maturity Amount₹6,14,907
Effective Annual Rate7.19% p.a.
FD Maturity Amount
₹6.15L
after 3 years · 7% p.a. quarterly
19%
Interest
Principal₹5L
Interest Earned₹1.15L
TDS Deducted₹0
Net Maturity₹6.15L
Rate Details
Nominal rate7.00% p.a.
Effective annual rate7.19% p.a.
Monthly payout (if opted)₹2,857/mo
Post-TDS yield7.00% p.a.
📅 Year-wise FD Interest Projection
| Period | Opening (₹) | Interest (₹) | TDS (₹) | Closing (₹) |
|---|
🏦 Bank FD Rates Comparison (FY 2025-26 — General & Senior Citizen)
| Bank | 1 Year | 2 Years | 3 Years | 5 Years | Sr. Citizen (extra) |
|---|---|---|---|---|---|
| SBI | 6.80% | 7.00% | 6.75% | 6.50% | +0.50% |
| HDFC Bank | 6.60% | 7.00% | 7.00% | 7.00% | +0.50% |
| ICICI Bank | 6.70% | 7.00% | 7.00% | 7.00% | +0.50% |
| Axis Bank | 6.70% | 7.10% | 7.10% | 7.00% | +0.50% |
| Kotak Bank | 7.10% | 7.00% | 7.00% | 6.20% | +0.50% |
| Yes Bank | 7.25% | 7.25% | 7.25% | 7.25% | +0.50% |
| IndusInd Bank | 7.75% | 7.75% | 7.25% | 7.25% | +0.50% |
| Post Office TD | 6.90% | 7.00% | 7.10% | 7.50% | N/A |
| SCSS (Sr. Citizen) | 8.20% (5-yr fixed — only for 60+ age) | — | |||
* Rates are indicative for FY 2025-26. Please verify with your bank before investing. SCSS rate is for Senior Citizens Savings Scheme.
📐
FD Formula — Compound
The compound interest formula used by all banks in India:
A = P × (1 + r/n)^(n×t)
P = Principal
r = Annual rate / 100
n = Compounding frequency/year
t = Tenure in years
Simple Interest: A = P × (1 + r×t)
P = Principal
r = Annual rate / 100
n = Compounding frequency/year
t = Tenure in years
Simple Interest: A = P × (1 + r×t)
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TDS on FD Interest
TDS is deducted on FD interest by banks automatically:
TDS threshold: ₹40,000/yr per bank (₹50,000 for Sr. Citizens)
TDS rate: 10% (20% without PAN)
Avoid TDS: Submit Form 15G (below 60) or 15H (60+) if total income is below taxable limit
Note: TDS deducted is a credit — claim it in your ITR against tax liability
TDS rate: 10% (20% without PAN)
Avoid TDS: Submit Form 15G (below 60) or 15H (60+) if total income is below taxable limit
Note: TDS deducted is a credit — claim it in your ITR against tax liability
🧮
Tax on FD Interest
FD interest is NOT tax-free — it is fully taxable:
Taxable as: "Income from Other Sources"
Tax rate: Your applicable income slab (5%/20%/30%)
Deduction: Section 80TTB — Sr. citizens can deduct up to ₹50,000 interest
Section 80C FD: 5-year tax-saver FD qualifies for ₹1.5L 80C deduction
Interest accrual: Taxable on accrual basis, not just on maturity
Tax rate: Your applicable income slab (5%/20%/30%)
Deduction: Section 80TTB — Sr. citizens can deduct up to ₹50,000 interest
Section 80C FD: 5-year tax-saver FD qualifies for ₹1.5L 80C deduction
Interest accrual: Taxable on accrual basis, not just on maturity
Frequently Asked Questions
Most banks use quarterly compounding: A = P × (1 + r/4)^(4×t). The effective annual rate with quarterly compounding is slightly higher than the nominal rate. For example, 7% nominal rate with quarterly compounding gives an effective rate of ~7.19%. For monthly payouts, banks pay a slightly lower rate than the cumulative FD rate.
Yes — FD interest is fully taxable as "Income from Other Sources" at your income slab rate. Banks deduct TDS at 10% if annual FD interest from one bank exceeds ₹40,000 (₹50,000 for senior citizens). TDS is deducted on accrual basis (each quarter), not just at maturity. Submit Form 15G (under 60) or Form 15H (60+) at the start of the year to avoid TDS if your income is below the taxable limit.
Cumulative FD: Interest is compounded and added back to principal — paid at maturity. Ideal for wealth building. Non-cumulative FD: Interest is paid out monthly or quarterly — ideal for regular income (e.g., retirees). The maturity value in non-cumulative is lower since interest is not compounded. Monthly payout FDs have a slightly lower rate than cumulative FDs to compensate for early interest payment.
A 5-year tax-saver FD qualifies for Section 80C deduction up to ₹1,50,000 per year — reducing your taxable income. However, the interest earned is still taxable. The FD has a 5-year lock-in — premature withdrawal is not allowed. It is available at most banks and post offices (Post Office 5-year TD at 7.5%). Good for investors in low tax slabs who need an additional 80C avenue.
As of FY 2025-26, small finance banks and select private banks offer the highest FD rates — often 8–9% for specific tenures. Among major banks, IndusInd Bank (7.75%) and Yes Bank (7.25%) offer competitive rates. Senior citizens get an additional 0.5% over the regular rate at most banks. The Senior Citizens Savings Scheme (SCSS) at 8.2% is the best guaranteed rate for senior citizens.
Bank FDs are among the safest investments. The Deposit Insurance and Credit Guarantee Corporation (DICGC) — a subsidiary of RBI — insures bank deposits up to ₹5 lakhs per depositor per bank (covering principal + interest). This means if a bank fails, you are guaranteed to receive up to ₹5L. Post Office FDs are backed by the sovereign government and carry zero risk.
Premature FD withdrawal attracts a penalty of 0.5%–1% on the applicable rate. For example, if you had a 3-year FD at 7% and break it in Year 1, you'd get the 1-year rate (say 6.5%) minus the penalty (say 1%), netting 5.5%. Before breaking, calculate whether the alternative investment return justifies the penalty. A TAXAJ CA can help you model the tax impact. Consult TAXAJ →
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Need to Declare FD Interest in Your ITR?
TAXAJ's CA team helps you correctly declare FD interest, claim TDS credit, use Form 15G/15H and optimise your tax liability — including senior citizen 80TTB deduction.
