Is FD interest tax-free?

No — fully taxable at your income tax slab rate. Banks deduct TDS at 10% if annual interest from that bank exceeds ₹40,000 (or ₹50,000 for senior citizens). You still need to report the full interest in your ITR and pay any additional tax.

What if I break my FD early?

Most banks charge a penalty of 0.5-1% off the applicable rate. Example: booked at 7.5% for 5 years, broken after 2 years → you get 2-year rate (say 7%) minus 1% penalty = 6% for the actual period held. Some banks (SBI, HDFC) waive penalty for very short delays.

Tax-Saver FD vs Regular FD?

Tax-Saver FD (5-year lock-in) qualifies for Section 80C deduction (₹1.5L cap) — good for tax savings if you have unused 80C room. Interest still taxable. Regular FD: no tax benefit but flexible tenure + premature withdrawal allowed.

Is FD interest tax-free?

No — fully taxable at your income tax slab rate. Banks deduct TDS at 10% if annual interest from that bank exceeds ₹40,000 (or ₹50,000 for senior citizens). You still need to report the full interest in your ITR and pay any additional tax.

What if I break my FD early?

Most banks charge a penalty of 0.5-1% off the applicable rate. Example: booked at 7.5% for 5 years, broken after 2 years → you get 2-year rate (say 7%) minus 1% penalty = 6% for the actual period held. Some banks (SBI, HDFC) waive penalty for very short delays.

Tax-Saver FD vs Regular FD?

Tax-Saver FD (5-year lock-in) qualifies for Section 80C deduction (₹1.5L cap) — good for tax savings if you have unused 80C room. Interest still taxable. Regular FD: no tax benefit but flexible tenure + premature withdrawal allowed.

FD Calculator (Fixed Deposit)

Fixed Deposit maturity value — Indian bank quarterly compounding formula. Works for SBI, HDFC, ICICI, PNB, Axis and all major banks.

Result

Maturity value

₹141,478

Principal invested₹100,000
Interest earned₹41,478
Growth multiple1.41×
Effective annual yield7.19%

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How to use this calculator

Enter the FD deposit amount.
Enter the interest rate quoted by the bank.
Enter tenure in years (fractions allowed for 3-month/6-month FDs).
Choose compounding frequency (quarterly is Indian bank default).
Read the maturity value + total interest.

About this tool

Fixed Deposit is the most popular savings instrument in India — over 80% of urban households hold at least one FD. Banks pay a guaranteed interest rate for a fixed period, with quarterly compounding by default. Interest is fully taxable at your slab rate (TDS deducted if interest exceeds ₹40,000/year, or ₹50,000 for seniors). The 5-year Tax-Saver FD qualifies for Section 80C deduction (₹1.5L cap) but has strict 5-year lock-in and premature withdrawal penalties. Deposits up to ₹5 lakh per bank per customer are insured by DICGC.

Frequently asked

By default, Indian banks (SBI, HDFC, ICICI, PNB, Axis, etc.) compound FD interest quarterly. Formula: Maturity = P × (1 + r/4)^(4t) where P = principal, r = annual rate, t = years.

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