FD calculator: a quick guide
What is a fixed deposit?
A fixed deposit (FD) locks money with a bank or post office for a set period at a fixed interest rate. Interest is usually compounded quarterly and paid out at maturity or at regular intervals.
How this calculator works it out
Maturity = deposit × (1 + rate ÷ n)n × years
n = number of times interest compounds each year
Tax is shown on the total interest at your slab rate plus cess; in practice it is due each year as interest accrues.
An example
₹5 lakh for 5 years at 7%, compounded quarterly, matures at about ₹7,07,389. In the 30% tax slab, about ₹64,705 goes in tax, leaving ₹6,42,684. That is a return of about 5.15% a year after tax, only a little above 5% inflation.
Good to know
- Banks deduct TDS on FD interest above a yearly threshold; you still owe tax at your slab rate.
- Deposits are insured by DICGC up to ₹5 lakh per depositor per bank.
- Breaking an FD early usually costs a penalty on the interest rate.