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FD Calculator
Maturity value with the bank's quarterly compounding, plus what is left after tax.
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A fixed deposit's headline rate is nominal. Because banks compound quarterly, the effective yield is slightly higher — and because interest is fully taxable, what you keep can be considerably lower.
Compounding
Quarterly compounding turns a 7.1% rate into about 7.29% effective. Monthly-payout deposits do not compound at all, which is why their maturity value is lower for the same rate.
Tax is the part people miss
Interest is taxable every year as it accrues, at your slab rate — not at maturity, and not at a concessional rate. At the 30% slab a 7.1% deposit returns under 5% after tax, which is at or below most inflation estimates.
TDS
Banks deduct 10% TDS once interest crosses ₹50,000 in a year for most depositors, ₹1 lakh for senior citizens. TDS is not the final tax — if your slab is higher, the balance is due when you file. Form 15G or 15H stops the deduction only if your total income is genuinely below the threshold.
Frequently asked questions
How is FD interest compounded?
Most banks compound quarterly, which makes the effective yield slightly higher than the quoted rate — 7.1% becomes about 7.29%. Monthly-payout deposits do not compound at all, so their maturity value is lower for the same headline rate.
When is TDS deducted on FD interest?
Once interest crosses ₹50,000 in a financial year for most depositors, or ₹1 lakh for senior citizens. The rate is 10% with PAN and 20% without. TDS is not the final tax — if your slab is higher, the balance is payable when you file.
Should I submit Form 15G or 15H?
Only if your total income is genuinely below the taxable threshold. Submitting one when it is not is a false declaration, and the interest remains taxable regardless of whether TDS was deducted.
Is an FD still worth it at the 30% slab?
After tax, a 7.1% deposit returns under 5%, which is at or below most inflation estimates. It remains the right vehicle for money you need within a year or two, and the wrong one for money you are trying to grow.