How is FD interest calculated?

Most Indian banks compound FD interest quarterly: Maturity = P × (1 + r/400)^(4 × years).

Do senior citizens get higher FD rates?

Yes, usually 0.25–0.75% more than regular rates.

FD Calculator — Fixed Deposit Maturity & Interest Calculator

Q: Is FD interest taxable?

Yes. FD interest is added to your income and taxed at your slab rate. Banks deduct 10% TDS if interest crosses ₹50,000 a year (₹1 lakh for senior citizens) and you have not submitted Form 15G/15H.

FD maturity formula

Maturity = P × (1 + r ÷ (100 × n))^(n × t) P = deposit · r = yearly rate · n = compounding per year (4 = quarterly) · t = years

Example: ₹1 lakh for 5 years at 7%, compounded quarterly, grows to ₹1,41,478, which is ₹41,478 interest and an effective yield of 7.19% a year.

Frequently asked questions

Is FD interest taxable?

Yes, at your income tax slab rate. Banks deduct 10% TDS once yearly interest crosses ₹50,000 (₹1 lakh for senior citizens) unless you submit Form 15G/15H.

What is a tax-saving FD?

A 5-year lock-in FD whose deposit (up to ₹1.5 lakh) can be claimed under Section 80C in the old tax regime. Interest is still taxable.

Are FDs safe?

Deposits up to ₹5 lakh per bank (principal + interest) are insured by DICGC. Small finance banks pay more but check their ratings.

Cumulative or payout FD?

Cumulative FDs reinvest interest and earn more. Payout FDs give regular income, which suits retirees.

These figures are estimates for planning only and are not financial advice. Actual returns, rates and charges depend on your bank, fund or scheme. Check the latest rates before you invest or borrow.

Year-wise breakdown

FD maturity formula

Frequently asked questions