India fixed deposits · Quarterly compounding · After-tax returns & TDS (FY 2026-27)
FD Calculator
Calculate your fixed-deposit maturity value, interest and effective yield with the correct quarterly compounding — and, unlike the bank calculators, exactly what you keep after TDS and tax.
FDs run 7 days to 10 years. Under ~6 months, banks pay simple interest.
Interest compounds, paid at maturity.
Most Indian banks compound quarterly.
Maturity value
₹1,38,042
₹1,00,000 grows by ₹38,042 in interest over 5 years. Effective yield 6.66% p.a.
Invested
₹1L
Interest earned
₹38k
Maturity
₹1.38L
What you actually keep after tax
FD interest is taxed at your slab. At 30%, tax on your ₹38,042 interest is ₹11,413, leaving you ₹26,629 — a post-tax value of ₹1,26,629 and an effective 4.55% after-tax return.
Your interest of about ₹7,608/year is under the ₹50,000 TDS limit, so no TDS is deducted — but the interest is still taxable at your slab and must be declared.
Year-by-year growth
| Year | Interest so far | Balance |
|---|---|---|
| 1 | ₹6,660 | ₹1,06,660 |
| 2 | ₹13,764 | ₹1,13,764 |
| 3 | ₹21,341 | ₹1,21,341 |
| 4 | ₹29,422 | ₹1,29,422 |
| 5 | ₹38,042 | ₹1,38,042 |
Cumulative FD maturity uses compound interest (default quarterly, the Indian bank standard): M = P(1 + r/n)^(n×t). Payout FDs pay simple interest periodically and return the principal at maturity. FD interest is fully taxable at your income-tax slab as "income from other sources"; banks deduct 10% TDS once your interest with them crosses ₹50,000 a year (₹1,00,000 for senior citizens), 20% without PAN — TDS is only an advance against your final tax. Bank rates and senior premiums vary; confirm the exact rate and terms with your bank. General information, not financial advice.
How an FD actually grows
A fixed deposit locks a lump sum with a bank or NBFC for a set tenure — anywhere from 7 days to 10 years — at a rate fixed on the day you invest. For a cumulativeFD, the interest isn't paid out; it's added back and earns interest itself, which is why your money compounds. Crucially, Indian banks compound FD interest quarterly, so the formula is M = P × (1 + r/4)4t. That quarterly compounding is why your real, effective yield is slightly higher than the advertised rate — and why a calculator that uses simple interest, or the wrong compounding, gets the number wrong.
The number the banks don't show you: after-tax return
Every bank's FD calculator shows you a big gross maturity figure — and stops there. But FD interest is fully taxable at your income-tax slab, so a headline 7% FD is really earning a 30%-slab investor about 4.9% after tax. That's the number that actually matters, and it's why FDs often lose to inflation for higher earners. This calculator puts the post-tax return right next to the gross one, so you see the real picture before you lock your money away. Pick your slab and watch the "what you actually keep" line update.
TDS on FD interest — and how to avoid surprises
Banks deduct TDS at 10% once your interest with them crosses ₹50,000 in a financial year — ₹1,00,000 for senior citizens, after Budget 2025 raised these limits. Without a PAN on file the rate jumps to 20%. The common misconceptions: TDS is notan extra tax (it's an advance you adjust against your final bill), and no TDS does not mean tax-free — you still owe slab tax on every rupee of interest. If your total income is below the taxable threshold, file Form 15G(or 15H for seniors) at the start of the year so the bank doesn't withhold TDS you'd only have to claim back later.
Cumulative vs payout, and the senior-citizen edge
Pick a cumulativeFD to grow a lump sum you don't need to touch — interest compounds into one larger maturity amount. Pick a non-cumulative(payout) FD if you want regular income: it pays interest out monthly or quarterly, which is popular with retirees, though the total is lower because nothing compounds. If you're a senior citizen, most banks add roughly 0.5% to your rate, you get the higher ₹1,00,000 TDS threshold, and you can claim up to ₹50,000 of interest as a deduction under Section 80TTB — a meaningful combination the calculator lets you model with a single tick.
Is an FD the right home for your money?
FDs are unbeatable for safety and certainty— capital is protected, returns are guaranteed, and deposits up to ₹5 lakh per bank are insured by DICGC. The trade-off is growth: after tax and inflation, an FD's real return is often near zero or slightly negative for higher-slab investors, which makes it better suited to an emergency fund or a short-term goal than to long-term wealth-building. For money you won't need for years, compare the FD's after-tax return here against what disciplined investing might do in our SIP calculator before you decide.
Worked example: ₹1,00,000 at 6.5% for 5 years
The growth. Deposit ₹1,00,000 at 6.5% for 5 years, cumulative with quarterly compounding. Maturity = ₹1,00,000 × (1 + 0.065/4)20 ≈ ₹1,38,042, so you earn about ₹38,042 in interest — an effective yield of 6.66% a year, a touch above the headline 6.5% thanks to compounding.
The tax reality.That ₹38,042 of interest is added to your income and taxed at your slab. For a 30%-slab investor, that's about ₹11,413 in tax, leaving roughly ₹26,629 — a post-tax maturity near ₹1,26,629 and a real return closer to 4.55%, not 6.5%. Since the yearly interest (about ₹7,600) stays under the ₹50,000 limit, no TDS is deducted — but the tax is still owed.
The takeaway.The gross number the bank advertises and the amount you actually keep are very different once your slab is in the picture. That gap — 6.5% down to about 4.55% — is the single most important thing to know before choosing an FD, and it's exactly what this calculator surfaces. Change the amount, rate, tenure or slab above and both numbers move together.
Frequently asked questions
How is FD maturity amount calculated?
For a cumulative fixed deposit, banks use compound interest, compounded quarterly: Maturity = P × (1 + r/4)^(4 × t), where P is your deposit, r is the annual rate (as a decimal) and t is the tenure in years. For example, ₹1,00,000 at 6.5% for 5 years grows to about ₹1,38,042 — roughly ₹38,042 of interest. Because interest compounds, your effective yield (about 6.66% here) is a little higher than the headline rate. The calculator above does this instantly and also shows what you keep after tax.
What is the interest on a ₹1 lakh FD?
It depends on the rate and tenure. At 7% for one year (quarterly compounding), ₹1,00,000 earns about ₹7,186; over 5 years it grows to roughly ₹1,41,478, or about ₹41,478 of interest. For a non-cumulative (payout) FD at 7%, you'd instead receive about ₹583 a month or ₹1,750 a quarter, with your ₹1,00,000 returned at maturity. Remember the interest is taxable at your slab — enter your numbers above to see both the gross and post-tax figures.
Is FD interest taxable, and what is TDS on FD?
Yes — FD interest is fully taxable at your income-tax slab rate as 'income from other sources', and you must declare all of it even if no tax was withheld. Separately, banks deduct TDS (tax deducted at source) of 10% once your interest with that bank crosses ₹50,000 in a financial year (₹1,00,000 for senior citizens, limits raised by Budget 2025); without a PAN it's 20%. TDS isn't an extra tax — it's an advance credited against your final bill. If your total income is below the taxable limit, submit Form 15G (or 15H for seniors) to stop TDS.
Is FD or RD better?
They suit different situations. A fixed deposit (FD) takes a single lump sum and locks it for the tenure, so your whole amount earns interest from day one — best when you already have the money. A recurring deposit (RD) takes a fixed amount every month, so it's ideal for building a habit out of monthly savings, but each instalment earns interest only from when it's paid, so the overall return is a bit lower than an FD of the same rate. If you have a lump sum, an FD usually wins; if you're saving monthly, an RD fits better.
Which is better — cumulative or payout FD?
Choose by whether you need the income now. A cumulative FD reinvests the interest so it compounds and you get one larger amount at maturity — best for growing wealth you don't need to touch. A non-cumulative (payout) FD pays the interest out monthly or quarterly, which suits retirees or anyone wanting regular income, but because nothing compounds, the total interest is lower. Tax treatment is the same for both. Toggle between them in the calculator to compare the maturity value against the monthly payout.
Do senior citizens get higher FD interest?
Yes. Most banks offer senior citizens (aged 60 and above) an extra interest rate, commonly around 0.5% above the regular rate, on the same tenures. Seniors also get a higher TDS threshold — banks don't deduct TDS until FD interest crosses ₹1,00,000 a year (versus ₹50,000 for everyone else), and many seniors can also claim a deduction of up to ₹50,000 on interest income under Section 80TTB. Tick the 'senior citizen' box above to apply the higher rate and TDS limit to your estimate.
Related tools
SIP Calculator
What monthly investing could earn instead — after inflation and tax.
NRE vs NRO FD (NRI)
Same rate, but NRE FD interest is tax-free — see how much more you keep.
Old vs New Tax Regime
FD interest is taxed at your slab — see which regime leaves you more.
All Investing Calculators
FD, SIP, lumpsum and more for India and beyond.