How is FD maturity calculated? What is the formula?

Fixed Deposit maturity is calculated using the compound interest formula: A = P × (1 + r/n)^(n×t) Where: A = Maturity amount P = Principal (initial deposit) r = Annual interest rate (as decimal, e.g. 7% = 0.07) n = Compounding frequency per year (1=annual, 2=half-yearly, 4=quarterly, 12=monthly) t = Time in years Example: ₹5,00,000 at 7% quarterly compounding for 3 years: r = 0.07, n = 4, t = 3 A = 5,00,000 × (1 + 0.07/4)^(4×3) A = 5,00,000 × (1.0175)^12 A = 5,00,000 × 1.2314 A = ₹6,15,700 (approx) Effective Annual Rate (EAR): EAR = (1 + r/n)^n − 1 At 7% quarterly: EAR = (1.0175)^4 − 1 = 7.1859% This means 7% compounded quarterly actually delivers 7.1859% per year effectively — higher than the stated rate.

What is TDS on FD and how do I avoid it?

TDS (Tax Deducted at Source) is deducted by the bank on FD interest before crediting it to your account. When TDS applies: For regular depositors: If annual interest income from FDs at the same bank exceeds ₹40,000 For senior citizens (60+): If annual interest exceeds ₹50,000 TDS rate: 10% if you submit PAN (Permanent Account Number) 20% if PAN is not submitted Important: TDS is not the final tax. If your actual slab rate is 30%, you owe the remaining 20% when filing ITR. If your income is below the taxable limit, the TDS deducted is refunded when you file ITR. How to avoid TDS (if income is below taxable limit): Submit Form 15G: For individuals below 60 years whose total income is below ₹2.5L (or applicable basic exemption limit) Submit Form 15H: For senior citizens (60+) whose tax liability is nil Submit these forms at the beginning of each financial year to the bank. Key rule: TDS applies on interest accrued, not just interest paid. Even if you choose a cumulative FD (interest paid at maturity), TDS may be deducted each year on the accruing interest. Pro tip: If you have FDs at multiple banks, the ₹40,000 limit applies per bank — not in total across banks. Splitting large FDs across banks below the threshold can avoid TDS (though all interest is still taxable and must be declared in ITR).

What is the extra interest benefit for senior citizens on FDs?

Senior citizens (aged 60 years and above) get a higher FD interest rate than general public — this is mandated by most banks as standard practice: Typical additional rate: +0.25% to +0.75% p.a. Most major banks: +0.50% p.a. Some banks offer more for specific tenures: Axis Bank +0.75%, Yes Bank +0.50% Current rates (Apr 2026) — Senior vs General (1-3 yr): SBI: 7.00% vs 6.50% (+0.50%) HDFC Bank: 7.50% vs 7.00% (+0.50%) ICICI Bank: 7.50% vs 7.00% (+0.50%) Kotak Mahindra: 7.75% vs 7.25% (+0.50%) Yes Bank: 8.25% vs 7.75% (+0.50%) Additional benefits for seniors: Higher TDS threshold: ₹50,000/year vs ₹40,000 for others Section 80TTB deduction: Senior citizens can deduct up to ₹50,000 of interest income from FDs, savings accounts, and post office deposits from taxable income (under Old Regime only) This makes effective post-tax FD return significantly better for seniors Note for those turning 60 during the FD tenure: You may be able to inform the bank and request the senior citizen rate from the date you turn 60 — policies vary by bank.

What is the difference between cumulative and non-cumulative FDs?

Fixed deposits offer two payout structures: Cumulative FD: ✓ Interest is reinvested and compounded during the tenure ✓ Total maturity (principal + all interest) paid at the end ✓ Ideal for wealth accumulation — higher maturity value due to compounding ✓ Best for long-term goals where you don't need interim income ✗ No periodic income; all money locked until maturity ✗ TDS still deducted annually on accruing interest Non-cumulative FD (interest payout FD): ✓ Interest paid periodically — monthly, quarterly, half-yearly, or annually ✓ Provides regular income — ideal for retirees and senior citizens ✓ Useful to meet regular expenses without breaking principal ✗ Principal remains locked; lower total return than cumulative FD ✗ No compounding benefit on paid-out interest Numerical example (₹10L, 7%, 5 years): Cumulative (quarterly compounding): Maturity = ₹14,14,778 Non-cumulative (quarterly payout): Quarterly payout = ₹17,500 (₹70,000/yr) · Principal returned at end = ₹10L · Total received = ₹10L + ₹3,50,000 = ₹13,50,000 Difference: ₹64,778 more with cumulative FD (because payouts in non-cumulative aren't reinvested). This calculator computes cumulative FD maturity. For non-cumulative, the interest payout per period = Principal × (rate/freq).

Is FD interest taxable? How does tax affect real returns?

Yes — FD interest is fully taxable as 'Income from Other Sources' at your applicable income tax slab rate. How FD interest is taxed: 1. Interest accrues every year (even for cumulative FDs) 2. You must declare it in your ITR each year (not just when received) 3. Tax is paid at your total income slab rate — 5%, 10%, 20%, or 30% + surcharge + cess 4. TDS at 10% may be pre-deducted by the bank Post-tax effective returns at 7% FD (5 years): Nil tax: Post-tax CAGR ≈ 7.19% (EAR) 5% slab: Post-tax CAGR ≈ 6.87% 10% slab: Post-tax CAGR ≈ 6.55% 20% slab: Post-tax CAGR ≈ 5.90% 30% slab: Post-tax CAGR ≈ 5.23% Comparison with equity mutual funds (12% CAGR, 30% slab): FD post-tax CAGR: 5.23% (short-term, taxed as income) Equity MF post-tax CAGR: ~11.0% (LTCG taxed at 12.5% above ₹1.25L after 1 year) For investors in the 20-30% tax bracket with a horizon of 3+ years, debt mutual funds or equity funds often deliver better post-tax returns than FDs. However FDs offer capital protection and guaranteed returns — equity MFs don't. Tax-saving FDs: 5-year tax-saving FDs qualify for deduction under Section 80C (max ₹1.5L/year, Old Regime only). They have a mandatory 5-year lock-in and cannot be pledged or broken prematurely. Interest is still taxable.

FD MATURITY CALCULATOR — FIXED DEPOSIT INDIA

Calculate Fixed Deposit maturity with exact compound interest: quarterly, monthly, half-yearly, or annual compounding. Supports all tenures from 3 months to 10 years, senior citizen rates (+0.50% auto-applied), TDS check (threshold ₹40,000/yr for general, ₹50,000/yr for seniors), and post-tax maturi...

FD CALCULATOR

Senior Citizen

+0.5% extra interest · TDS threshold ₹50,000/yr

Principal Amount (₹)

Interest Rate (% p.a.)

QUICK SELECT FROM MAJOR BANKS (1-3yr, Apr 2026)

Tenure

Years

Months

Compounding Frequency

Your Tax SlabInterest is taxable as income

MATURITY AMOUNT

₹5.36 L

INTEREST EARNED

₹35,930

ABS. RETURN

7.19%

EAR

7.1859%

POST-TAX CAGR

5.03%

Post-tax maturity (30% slab): ₹5.25 L

LIVE DIAGRAM

FD MATURITY AMOUNT

₹5.36 L

₹5.00 L principal · ₹35,930 interest · EAR 7.1859%

MATURITY COMPOSITION

Principal₹5.00 L (93%)

Interest earned₹35,930 (7%)

BALANCE GROWTH

Post-tax maturity (30% slab): ₹5.25 L

Effective post-tax CAGR: 5.03% p.a.

Compound interest · Interest taxable at income slab rate

Created with❤️byeaglecalculator.com

CURRENT FD RATES — MAJOR BANKS (APR 2026)

Bank	Type	General (%)	Senior Citizen (%)
SBI	PSU	6.5%	7%
HDFC Bank	Private	7%	7.5%
ICICI Bank	Private	7%	7.5%
Axis Bank	Private	7%	7.75%
PNB	PSU	6.5%	7.25%
Bank of Baroda	PSU	6.85%	7.35%
Kotak Mahindra	Private	7.25%	7.75%
Yes Bank	Private	7.75%	8.25%
IDFC First	Private	7.5%	8%

Rates for 1-3 year tenure · Rates change periodically · Verify with your bank before investing · Senior citizen rate includes +0.50% standard benefit

YEAR-BY-YEAR SCHEDULE

HOW TO USE

1
Toggle the Senior Citizen switch if you are 60 or above — this applies the standard +0.50% extra interest most banks offer, and raises the TDS threshold from ₹40,000 to ₹50,000 per year. Enter your principal amount using the quick presets (₹1L to ₹1Cr) or type any amount.
2
Enter the interest rate. Use the 6 bank quick-select buttons to apply rates from SBI, HDFC, ICICI, Axis, PNB, or Bank of Baroda with one click. The full rates table below the calculator shows all 9 major banks. Rates shown are for 1-3 year tenure as of April 2026 — verify with your bank before investing.
3
Set the tenure in years and months. Use the quick presets (3M, 6M, 1Y, 2Y, 3Y, 5Y, 7Y, 10Y) or enter any custom duration. Most FD tenures range from 7 days to 10 years; tax-saving FDs are locked for exactly 5 years.
4
Select the compounding frequency — Quarterly is the most common in India. Monthly compounding gives the highest EAR (Effective Annual Rate); Annual gives the lowest. The EAR shows the true annualised yield accounting for compounding within the year.
5
Select your income tax slab to see the post-tax maturity value and effective post-tax CAGR. FD interest is fully taxable as income — added to your total income and taxed at your slab rate. A TDS warning appears automatically if your annual interest exceeds ₹40,000 (₹50,000 for seniors). Submit Form 15G (below 60) or Form 15H (60+) at your bank if your total income is below the taxable threshold to avoid TDS deduction.

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FD Maturity Calculator · Compound interest formula · Quarterly compounding default · TDS threshold ₹40,000/yr (₹50,000 for seniors) · Interest taxable as income at applicable slab · Rates as of Apr 2026 — verify with your bank · For informational purposes only