A Fixed Deposit locks a lump sum with a bank for a fixed tenure at a guaranteed interest rate. This calculator uses quarterly compounding — the convention used by most Indian banks for FDs.
About the FD Calculator
FDs are the safest investment in India — principal and interest are guaranteed (up to ₹5 lakh per depositor per bank under DICGC insurance). Interest is taxable at your slab rate, and banks deduct TDS when interest crosses the annual threshold.
Formula used:
Frequently Asked Questions
Is FD interest taxable?
Yes — FD interest is added to your total income and taxed at your slab rate. Banks deduct TDS at 10% (or 20% without PAN) once interest crosses ₹40,000 (₹50,000 for senior citizens) per year.
Can I withdraw an FD before maturity?
Usually yes, but banks apply a premature-withdrawal penalty of 0.5–1% off the applicable interest rate.