Fixed deposit calculator
What does this FD mature to, and what does TDS take out of it?
As quoted by the bank. Senior-citizen rates are usually 0.5% higher.
Banks compound FDs quarterly unless the scheme says otherwise.
Without PAN the bank deducts TDS at 20% instead of 10%.
₹7,10,873at maturity, after 5 years
- Interest earned
- ₹2,10,873
- TDS
- ₹0
- Before TDS
- ₹7,10,873
- Effective yield
- 8.4%
TDS is deducted by the bank each year, not at maturity — the figure above is the whole tenure's. Interest is taxable at your slab; TDS is only an advance against it. Quarterly compounding.
- Deposit
- Interest
| Month | Deposit | Interest | Value |
|---|---|---|---|
| 0 | ₹5,00,000 | ₹0 | ₹5,00,000 |
| 5 | ₹5,00,000 | ₹14,879 | ₹5,14,879 |
| 10 | ₹5,00,000 | ₹30,201 | ₹5,30,201 |
| 15 | ₹5,00,000 | ₹45,979 | ₹5,45,979 |
| 20 | ₹5,00,000 | ₹62,226 | ₹5,62,226 |
| 25 | ₹5,00,000 | ₹78,956 | ₹5,78,956 |
| 30 | ₹5,00,000 | ₹96,185 | ₹5,96,185 |
| 35 | ₹5,00,000 | ₹1,13,926 | ₹6,13,926 |
| 40 | ₹5,00,000 | ₹1,32,196 | ₹6,32,196 |
| 45 | ₹5,00,000 | ₹1,51,009 | ₹6,51,009 |
| 50 | ₹5,00,000 | ₹1,70,381 | ₹6,70,381 |
| 55 | ₹5,00,000 | ₹1,90,330 | ₹6,90,330 |
| 60 | ₹5,00,000 | ₹2,10,873 | ₹7,10,873 |
A bank quotes an FD rate per year, but pays you on a balance that grows every quarter — so the amount that lands at maturity is never the deposit plus rate times years, and it is never the whole of the interest either, because the bank deducts tax before it pays. Put in the amount, the rate on the counter slip, how long you are locking it for and how often the scheme compounds, and this gives you the cheque you actually receive: interest earned, TDS taken out, and the yield that works out to per year.
A worked example
₹10,00,000 in a cumulative FD at 7.1%, locked for 5 years, compounded quarterly, PAN on file. Set the five fields above to those and the page returns:
- ₹14,04,572 at maturity — what you receive
- ₹4,21,747 interest earned
- ₹17,175 TDS deducted
- ₹14,21,747 before TDS
- an effective yield of 8.4% a year, on a 7.1% quote
- ₹10,00,000 Your deposit — back, in full
- ₹4,04,572 Interest you keep — the ₹4,21,747 earned, less TDS
- ₹17,175 TDS the bank sent to the department
The cheque is the first two bars. The third never reaches you — it lands in your Form 26AS as tax already paid.
The growth is not a straight line. In the first five months the deposit earns ₹29,758; in the last five, ₹41,086 — the same rate, working on a balance that is now ₹3.8 lakh bigger. That is the whole case for leaving an FD alone: the last year of a five-year deposit is the one that pays.
The Compounded field is worth more than it looks
Same ₹10,00,000, same 7.1%, same five years. Only the compounding frequency changes.
₹15,572 between the top and bottom row — from one line in the scheme document, not from the rate.
Two schemes quoting the identical rate are not the identical deposit. And a non-cumulative FD — the kind that pays interest into your account every quarter — does not compound at all, because the interest leaves. This calculator models the cumulative version, so if your scheme pays out monthly or quarterly, expect the plain rate and not the yield above.
What this number does not include
The TDS line is a floor
This page computes TDS on the interest above the annual threshold. A bank applying section 194A deducts on the whole year’s interest once you cross it — on the case above that is roughly ₹8,400 a year, near ₹42,000 across the tenure, against the ₹17,175 shown. Treat the figure as the least the bank will hold back.
And it is taken every year
The headline is a maturity number, but TDS is deducted annually as interest accrues, and so is the tax. Nothing about a 5-year FD defers the bill to year five, and the deducted amount is not reinvested — it stops compounding the moment it leaves.
Your slab, not the TDS rate
10% deducted is not 10% taxed. Interest is added to your income at your slab rate, so a 30% taxpayer owes the balance at filing. Section 80TTA does not cover FD interest — that is for savings accounts. Senior citizens have section 80TTB, and it is an old-regime deduction only.
One deposit, one bank
Nothing here spans banks or people. Rates differ between banks and between tenure buckets at the same bank, senior citizens are usually offered about 0.5% more, and a deposit in a spouse’s name is taxed in the hands of whoever the money belonged to, not whoever the FD names.
Two more. The rate is a snapshot — an FD is fixed for you, but the bank re-prices new deposits constantly, so a renewal in five years will not be at this rate, and a deposit under a sweep or auto-renewal instruction quietly rolls into whatever the card says on that day. And the 5-year tax-saving FD is a different product: it can qualify for a section 80C deduction, but only if you file under the old regime, and in exchange it is locked for the full five years with no premature withdrawal and no loan against it.
One reading note: the table below the calculator reports thirteen checkpoints across the tenure, not month-ends, so a five-year deposit shows month 0, 5, 10 and so on to 60. The maturity row is the one that matters.
Where to go next
If you are putting money in every month rather than once, the recurring deposit calculator is the one — the same quarterly compounding, applied to instalments that are each on deposit for a different length of time, which is why an RD’s yield reads lower than an FD’s. Before locking a long tenure, compare against PPF, where the interest is exempt rather than taxed at your slab — that gap usually matters more than the difference in headline rates. And to see what the interest does to your actual tax bill instead of just the TDS line, run the income tax calculator.
Why is the maturity amount more than deposit plus simple interest?
Because a cumulative FD compounds. Interest credited at the end of a quarter joins the balance and earns interest itself for the rest of the tenure, so the effective yield comes out above the quoted rate — on the worked example below, 7.1% quoted returns 8.4% a year in simple terms. Choose Yearly in the Compounded field and the same deposit earns less; choose Monthly and it earns a little more.
How much TDS will the bank cut on my FD?
Under section 194A a bank deducts at 10% once the interest it pays you crosses the annual threshold for your category — the ₹50,000 this calculator uses is the limit for a depositor who is not a senior citizen, and seniors have a higher one, so check the current section 194A table before you plan around it. Without a PAN on file the rate is 20% under section 206AA, which is why the PAN field is there. The threshold is per bank per financial year and counts every branch, not per deposit — three FDs at one bank are added together.
Is FD interest tax-free if the bank does not deduct TDS?
No. TDS and tax are different things. Interest is taxable as income from other sources at your slab whether or not anything was deducted, and it is taxable in the year it accrues, not the year the FD matures. TDS is only an advance credited against that bill — if your slab is 30% you will owe more at filing; if you are below the exemption limit you can file Form 15G, or 15H if you are a senior citizen, under section 197A so nothing is deducted in the first place.
What do I lose if I break an FD early?
Two things, and neither is in the figure above. The bank re-works your interest at the rate that applied to the period the money actually stayed — a 5-year deposit closed at 14 months earns the 1-year rate, not the 5-year one — and then applies a premature-withdrawal penalty from its own published schedule, commonly around half a percent. Some schemes, including the 5-year tax-saving FD, cannot be broken at all.
Is a fixed deposit actually safe?
The rate is contractual, so the return is certain in rupees. The bank is not: your deposits at one bank are insured by the DICGC up to ₹5 lakh per depositor, principal and interest together, and anything above that rides on the bank. The other risk is quieter — a fixed return taxed at your slab can end up behind inflation, which is why an FD is the right home for money you need on a date and the wrong one for money you need to grow.
This page starts from typical figures. In Hundo the same calculator opens on your own — the loan, the deposit, the salary already on the ledger — and says where each number came from.