FD calculator

FD maturity = P × (1 + r/n)^(n × t)

• P — principal
• r — annual rate as a decimal
• n — compounding periods per year (4 = quarterly, the Indian-bank standard)
• t — tenure in years

Worked example. ₹5,00,000 at 7.25% for 5 years, compounded quarterly: A = 500000 × (1 + 0.0725/4)^(4×5) = 500000 × (1.018125)^20 = ₹7,15,634. Interest earned = ₹2,15,634 over 5 years.

Banks quote the nominal annual rate (7.25% in the example), but because interest compounds quarterly, the actual rate your money earns over a full year is slightly higher:

EAR = (1 + r/n)^n − 1

For 7.25% quarterly: EAR = (1 + 0.0725/4)^4 − 1 = 7.45%. That 0.20% gap is small, but over a 5-year ₹5L FD it's worth about ₹5,000. Always compare two FDs using EAR, not the headline nominal rate — especially when one compounds quarterly and the other monthly.

FD interest is fully taxable as 'Income from Other Sources'. It is added to your income and taxed at your applicable slab — not the LTCG / STCG rates that equity gets.

TDS thresholds (Sections 194A & 194P, FY 2025-26):

• Bank deducts TDS at 10% if total FD interest from that bank in a year exceeds ₹40,000 for individuals under 60.
• Threshold is ₹50,000 for senior citizens (60+).
• No PAN on record → TDS jumps to 20%.

If your total annual income is below the basic exemption limit, submit Form 15G (under 60) or Form 15H (60+) to skip TDS. Even if TDS is deducted, you can claim it back as a refund when filing your ITR.

This calculator shows pre-tax maturity. To get take-home, apply your marginal slab to the interest portion.

If you break an FD before maturity:

• The bank pays interest at the rate applicable to the tenure actually completed, not the originally booked rate.
• A penalty of 0.50%–1% is deducted from that completed-tenure rate.
• Example: ₹5L booked at 7.25% for 5 years, broken at 18 months. If the bank's 18-month card rate today is 6.75%, you get 6.75% − 1% penalty = 5.75% for 18 months. Not the 7.25% you originally booked.

Tax-saver FDs (Section 80C, 5-year lock-in) cannot be broken at all. Plan tenure with a buffer or use a sweep-in / flexi-FD for emergency liquidity.

Educational only — not financial or tax advice.

1. Enter the FD details — Principal, annual rate (% p.a.) and tenure. Default tenure unit is years; switch to months for short FDs (e.g. 91-day, 180-day).
2. Pick the compounding frequency — Indian banks compound FDs quarterly — this is the default. NBFC FDs and tax-saver FDs sometimes use monthly. Check your scheme document if unsure.
3. Read maturity + EAR — Maturity amount, interest earned and the effective annual rate. The period-by-period table shows how each quarter's interest joins the principal.

• Confirm rates, compounding frequency, tax year, dates, and rounding before acting on the result.
• Fees, penalties, inflation, and local rules can make real outcomes differ from simple formulas.
• Treat results as guidance, not financial, tax, legal, or investment advice.

Your money amounts, rates, dates, and calculated scenarios stay in the browser. EpitomeTool does not upload finance inputs or generated results to a server.