FD Calculator –
Calculate Fixed Deposit Returns

Indian banks use quarterly compounding for FDs: M = P × (1 + r/4)^(4n). For ₹1 lakh at 7% for 1 year: M = 1,00,000 × (1.0175)^4 = ₹1,07,186. Compare: simple interest would give only ₹1,07,000. The 0.018% difference compounds significantly over longer periods. Our calculator uses the same quarterly compounding formula.

Yes, FD interest is fully taxable as income under "Income from Other Sources." Banks deduct TDS at 10% if annual FD interest exceeds ₹40,000 (₹50,000 for senior citizens). Submit Form 15G (below 60 years) or 15H (60+ years) to avoid TDS if your total income is under ₹2.5L. Effective post-tax yield on 7% FD = 4.9% (30% bracket), 5.6% (20% bracket), 6.65% (10% bracket).

Small Finance Banks offer highest rates: Unity SFB (9.5%), Suryoday SFB (9.1%), AU SFB (8.5%). Major private banks: HDFC, ICICI, Axis at 7–7.25%. SBI at 6.5–7.1%. Always verify safety: SFBs are RBI-regulated, deposits insured up to ₹5L. For amounts above ₹5L, spread across multiple banks for full insurance coverage.

Yes. Most banks allow premature FD closure with a penalty of 0.5–1% on the applicable rate. For ₹5L FD at 7% with 1% penalty: you receive 6% instead of 7%. Some banks offer penalty-free premature withdrawal for medical emergencies. Flexi FDs / Sweep-in FDs allow instant withdrawal without penalty — recommended for emergency funds.

Tax Saver FD (5-year FD) offers Section 80C deduction up to ₹1.5L per year. Lock-in: strictly 5 years — no premature withdrawal. Current rates: 7–7.5% at major banks. Despite 80C benefit, Tax Saver FD is often inferior to ELSS because: ELSS has only 3-year lock-in, higher returns (12%+), and same 80C benefit. Only choose Tax Saver FD if you want zero market risk for the 80C investment.