Calculate the maturity amount and interest earned on your Fixed Deposit - with any compounding frequency.
Bank FDs are insured up to ₹5 lakh per depositor per bank by DICGC. Post Office FDs carry sovereign (government) guarantee.
TDS @ 10% applies if annual FD interest exceeds ₹40,000 (₹50,000 for seniors). Submit Form 15G/15H if total income is below taxable limit.
5-year tax-saving FDs qualify for ₹1.5L/year deduction under Sec 80C (old regime). Premature withdrawal is NOT allowed for these FDs.
Most banks allow premature FD closure with 0.5–1% penalty on applicable rate. Lock in when rates are high to maximise returns.
Fixed Deposits are the most popular savings instrument in India, with over Rs 200 lakh crore held in FDs across Indian banks as of March 2024 (RBI data). An FD allows you to deposit a lump sum for a fixed tenure at a guaranteed interest rate, making it an attractive option for risk-averse investors who prioritise capital safety over market-linked returns. FD interest rates in India have ranged from 6.5% to 9.0% per annum in 2024, depending on the bank type, tenure, and whether the depositor is a senior citizen (who typically receive 0.25-0.75% additional interest).
FD interest can be compounded monthly, quarterly, half-yearly, or annually - and this choice significantly affects maturity amount. A Rs 1 lakh FD at 7% for 3 years gives Rs 1,22,504 with annual compounding but Rs 1,23,144 with monthly compounding - a difference of Rs 640. This calculator lets you compare all compounding options. The formula used is: M = P x (1 + r/n)^(nt), where P is principal, r is annual rate, n is compounding frequency, and t is tenure in years.
FD interest is taxable as "Income from Other Sources" under the Income Tax Act. Banks deduct TDS at 10% if interest exceeds Rs 40,000 per year (Rs 50,000 for senior citizens, Rs 5,000 for cooperative banks). Submit Form 15G (below 60 years) or 15H (60+) to prevent TDS deduction if your total income is below the taxable limit. SEBI-regulated corporate FDs offer higher rates but carry credit risk, unlike bank FDs covered under DICGC insurance up to Rs 5 lakh.