FD Calculator (Fixed Deposit)

About the FD Calculator (Fixed Deposit)

Enter the deposit, the rate and the tenure to see the maturity amount, the interest, the effective annual yield and a dated schedule of every interest credit or payout. It handles cumulative deposits (interest added to the deposit) and payout deposits that pay interest every month, quarter, half-year or year, with an optional extra rate for senior citizens.

Switch to Post Office Time Deposit for the 1, 2, 3 and 5-year National Savings Time Deposits, which compound quarterly but pay interest once a year. The calculator also estimates TDS for each tax year from the Income-tax Act, 2025 thresholds, and, if you choose your slab rate, the interest left after tax.

How banks calculate FD interest

Each bank sets its own method, but most follow the convention SBI publishes in its Method of Calculation of Interest Rates on Deposits (sbi.bank.in), and this calculator uses it:

• Cumulative deposits of 6 months or more: interest is compounded every completed quarter, counted date to date from the deposit date (3 Oct → 3 Jan → 3 Apr …). Days left over after the last full quarter earn simple interest at the rate × days ÷ 365.
• Deposits of 3 to 6 months: simple interest for the completed months (rate ÷ 12 a month) plus the remaining days.
• Deposits under 3 months: simple interest for the actual number of days ÷ 365.
• Payout deposits: interest for each completed month, quarter or year is paid out and does not compound.
• A year counts as 365 days, including leap years.

The RBI’s Commercial Banks – Interest Rate on Deposits Directions, 2025 set the minimum term at 7 days (para 10(1)) and require interest payments to be rounded to the nearest rupee (para 7(7)). Banks may offer senior citizens a higher fixed rate (para 13) — enter your bank’s extra rate.

The effective annual yield

Quarterly compounding makes a cumulative FD earn a little more than its headline rate: yield = (1 + r ÷ 4)^4 − 1. At 7% that is 7.186% a year; at 7.5% it is 7.714%. A payout FD earns exactly its headline rate, because the interest is paid out rather than reinvested. RBI rules require banks to quote the simple annual rate in advertisements, not only the compounded yield.

Post Office Time Deposit rules

Under the National Savings Time Deposit Scheme, 2019 (paragraphs 5 and 7):

• Tenures of 1, 2, 3 or 5 years; one deposit of at least ₹1,000, in multiples of ₹100, with no upper limit.
• Interest is compounded quarterly and paid at the end of each year, rounded to the nearest rupee: yearly interest = P × ((1 + r ÷ 4)^4 − 1). No extra interest is paid on interest you leave unwithdrawn.
• The rate on the day you open the account applies until maturity.
• Premature closure is not allowed in the first 6 months. Between 6 and 12 months you get the Post Office Savings Account rate; after a year, interest is recalculated at 2 percentage points below the rate for a deposit of the completed length (1, 2 or 3 years), and a 5-year deposit closed after 4 years uses the 3-year rate (para 8).
• The 5-year deposit counts towards the ₹1.5 lakh deduction under section 123 (Schedule XV, item (v)) — in the old regime only.

The rates filled in are from the NSI interest-rate table: 6.9% (1 year), 7.0% (2 years), 7.1% (3 years) and 7.5% (5 years). The government reviews them every quarter, so confirm the current rate and edit it if it has changed.

TDS on FD interest in Tax Year 2026-27

Section 393(1) of the Income-tax Act, 2025 (Table, serial 5(ii)) makes a bank, co-operative bank or post office deduct tax at source once the interest it credits or pays you in a tax year is more than ₹50,000, or ₹1,00,000 if you are a senior citizen (60 or older at any time in the year). Once the limit is crossed, TDS applies to the whole interest, not just the excess.

• The rate is 10% (the rate in force under the Finance Act, 2026, First Schedule Part II); no surcharge or cess is added for residents.
• Without a valid PAN, TDS is 20% (section 397(2)(b)(i)).
• Interest on a cumulative FD is counted in the year it accrues, so a long deposit can attract TDS every year even though you receive the money at the end.
• If the tax on your total income for the year will be nil, you can give the bank a written declaration under section 393(6) so that no TDS is deducted (the old Forms 15G and 15H). Below 60, the declaration is not allowed once such income (interest, dividends and similar) for the year exceeds the basic exemption limit.

TDS is not an extra tax: FD interest is taxed at your slab rate as income, and the TDS is credited against your final tax when you file your return.

Breaking an FD early

If you withdraw early, the bank pays the rate that applied to the period the money actually stayed with it, not the contracted rate (RBI Directions, para 11), less any penalty in its board-approved policy. SBI, for example, charges 0.50% on retail deposits up to ₹5 lakh and 1% above that, and pays no interest on deposits that stay less than 7 days. Individual deposits of ₹1 crore or less must allow premature withdrawal.

Limitations

• Uses the rate you enter for the whole term. Bank rates change often; the rate on your deposit receipt is fixed when you book it.
• Banks and NBFCs can use other conventions for part periods or monthly payouts. The figures on your deposit advice are final.
• The TDS estimate assumes the same “other interest” from the bank every year and does not model declarations under section 393(6). It applies the Income-tax Act, 2025 rules (in force from Tax Year 2026-27) to every year shown, including earlier years for a deposit opened in the past.
• The maturity amount and payouts are shown before TDS. When TDS is deducted, you receive that much less and claim it against your tax.
• The optional tax estimate applies one slab rate plus 4% cess to all interest; it ignores surcharge, the section 156 rebate and other income.
• Premature withdrawal penalties are not calculated.

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