Fixed deposit calculator
See what a fixed deposit pays at maturity, what is left after income tax, and the real yearly yield once compounding is counted.
Your deposit and the interest it builds
How the maturity value is worked out
For a cumulative deposit, interest is added to the balance each compounding period and then earns interest itself: amount × (1 + rate ÷ n)n × years, where n is the number of periods a year. Most banks compound quarterly, which is why a 6.25% deposit actually yields about 6.4% a year.
Tax and TDS
FD interest is added to your income and taxed at your slab rate every year, whether it is paid out or not. Banks deduct TDS of 10% (20% without a PAN) when the interest from that bank in a year is more than ₹50,000, or ₹1 lakh for senior citizens. TDS is not an extra tax: it counts towards the tax you owe when you file your return. If your income is below the taxable limit, you can submit a declaration to the bank so it does not deduct TDS.
How safe is it?
DICGC, a subsidiary of RBI, insures deposits up to ₹5 lakh per person per bank, counting principal and interest together across all branches of that bank.
Questions
Is a monthly payout FD worse?
Slightly. Banks pay a little less when they pay interest out every month, and money paid out does not compound.
Should I split a big deposit across banks?
Splitting keeps each bank under the ₹5 lakh insurance cover and can keep interest from each bank below the TDS limit. TDS is not extra tax, though; you still owe tax on all the interest.
Does breaking an FD early cost money?
Usually yes. Banks pay the rate for the period the money actually stayed, minus a penalty, often 0.5% to 1%. Check your bank's terms.
Sources
- SBI: fixed deposit
- SBI: deposit interest rates
- Income Tax Department: threshold limits
- DICGC: deposit insurance
For illustration only. Banks round interest their own way and rates change often. Tax shown is at your slab rate without cess.
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