FD Calculator

A bank or post-office fixed deposit locks a rupee principal for a stated tenure at a stated rate. This page compounds annually: maturity = principal × (1 + rate)^years. Indian FDs often compound quarterly; the difference is small at short tenures and worth knowing before you compare a 7% FD in Nagpur with a 7.1% PPF.

The cash-flow question

Families still park emergency money in FDs because the amount is predictable and deposit insurance exists up to the DICGC limit per bank. A ₹1 lakh, 5-year, 7% run is the default so you can see interest of about ₹40,255 under annual compounding. Senior-citizen extra rates and tax deducted at source are not auto-applied.

The maths on this page

Annual-compound formula: A = P(1+r)^t. Defaults: P = ₹1,00,000, r = 7%, t = 5, A ≈ ₹1,40,255, interest ≈ ₹40,255. If your bank compounds quarterly, the effective yield is slightly higher than this annual model at the same headline rate.

TDS may apply when interest in a financial year crosses the threshold the Income-tax Act currently uses, unless you file a valid declaration where allowed. Interest is generally taxed as income. Confirm TDS rules on incometax.gov.in, not on a bank flyer alone.

Post Office Time Deposit and commercial-bank FDs are different products. Premature-closure penalties are in the deposit receipt. IndiaKit does not model penalty slabs.

₹1 lakh for five years at 7% in Nagpur

Prakash in Nagpur parks ₹1,00,000 in a five-year FD quoting 7%. The annual-compound sketch matures at about ₹1,40,255, with ₹40,255 interest. He checks whether his bank’s quarterly compounding and a senior-citizen extra 0.5% would apply to his mother, then reads the deposit advice rather than this page’s headline.

What a bank still has to confirm

Headline rates change weekly. This model compounds once a year and ignores TDS, penalties and auto-renewal. DICGC insurance has a statutory cap per bank; amounts above that are a credit-risk decision.

Common questions

Why might my bank app show a higher maturity than this?

Quarterly or monthly compounding, a senior-citizen spread, or a special tranche can all lift the payout. This page is annual compounding at the rate you type.

Is FD interest tax-free like PPF?

No. PPF interest is generally tax-exempt under the PPF scheme rules. FD interest is usually added to taxable income. Confirm both on incometax.gov.in and the scheme document.

What is the DICGC cover in one sentence?

Deposit insurance currently covers a statutory limit per bank per depositor (the figure is set in law and on dicgc.org.in). It is not unlimited, and it is not a substitute for reading the bank’s rating and your own diversification.