FD calculator
Find out what your fixed deposit will be worth at maturity. Most banks compound FD interest every quarter, which is already selected.
Rules for FY 2026-27 · Checked 24 October 2026
after 5 years. Effective yield 7.19% a year.
- You earn ₹41.5k in interest.
- In the 30% tax slab you keep about ₹28.5k of it after tax.
- Compare with PPF, which is tax-free.
- Deposit₹1,00,000
- Interest earned₹41,478
- Interest earned
- ₹41,478
- Maturity value
- ₹1,41,478
FD interest is taxed at your slab rate each year, and the bank deducts 10% TDS when a year's interest from it passes ₹50,000 (₹1 lakh for senior citizens).
Year-by-year table
| Year | Interest so far | Balance |
|---|---|---|
| 1 | ₹7,186 | ₹1,07,186 |
| 2 | ₹14,888 | ₹1,14,888 |
| 3 | ₹23,144 | ₹1,23,144 |
| 4 | ₹31,993 | ₹1,31,993 |
| 5 | ₹41,478 | ₹1,41,478 |
The FD formula
A = P × (1 + r ÷ n)^(n × t), where P is the deposit, r the yearly rate as a decimal, n how many times a year interest is compounded and t the time in years.
A ₹1 lakh FD at 7% for 5 years, compounded quarterly, matures at about ₹1,41,478. Quarterly compounding turns 7% into an effective 7.19% a year.
How FD interest is taxed
- Interest is added to your income and taxed at your slab rate every year, even if you get it only at maturity.
- Banks deduct 10% TDS once the interest from that bank passes ₹50,000 in a year (₹1 lakh for senior citizens). If you expect no tax for the year, give the bank Form 121 (it replaced Forms 15G and 15H from April 2026) so none is deducted.
- A 5-year tax-saving FD qualifies for 80C in the old regime, but it cannot be broken early.
After tax, a 7% FD earns about 4.8% for someone in the 30% slab. Compare it with PPF, which is tax-free, or with a SIP for long goals.
Deposit insurance
Deposits in each bank are insured up to ₹5 lakh per person by DICGC, a subsidiary of the RBI. This covers principal and interest together.
Frequently asked questions
Which compounding should I choose?
Check your bank’s terms. Most banks compound quarterly for FDs longer than 6 months. If you take the interest out every month or quarter, there is no compounding.
Do senior citizens get higher FD rates?
Yes, usually 0.25% to 0.5% more, and TDS starts only after ₹1 lakh of interest a year.
Can I break an FD early?
Yes, except tax-saving FDs. Banks usually cut the rate by 0.5% to 1% for early withdrawal.