FD Calculator

What is a Fixed Deposit?

A Fixed Deposit (FD) is a financial instrument provided by banks and NBFCs that offers a higher interest rate than a regular savings account. The depositor agrees to keep the funds deposited for a fixed period (tenure) in exchange for guaranteed returns.

Types of FD

• Cumulative FD: Interest is compounded and paid at maturity
• Non-Cumulative FD: Interest paid monthly, quarterly, or annually
• Tax-Saver FD: 5-year lock-in with 80C deduction (max Rs 1.5L)
• Flexi FD: Linked to savings account for auto-sweep facility

Interest Compounding

• Quarterly Compounding: Most common, interest added every 3 months
• Monthly Compounding: Slightly higher returns
• Annual Compounding: Lower effective yield

TDS on FD Interest

• Threshold: Rs 40,000/year (Rs 50,000 for senior citizens)
• TDS Rate: 10% (with PAN) or 20% (without PAN)
• Exemption: Submit Form 15G/15H if income is below taxable limit
• Note: TDS is on total interest from all FDs in a bank, not per FD

Tax Saver FD (Section 80C)

• Lock-in period of 5 years
• Deduction up to Rs 1.5 lakh under Section 80C
• Interest is taxable at slab rate
• No premature withdrawal or loan against this FD

Current FD Rates (Indicative)

Rates are indicative and vary by bank. Please check with your bank for current rates.

Premature Withdrawal

• Most banks allow premature withdrawal with penalty (0.5-1%)
• Interest is recalculated at the rate applicable for the actual tenure
• Not allowed for Tax-Saver FD (5-year lock-in)