FD Calculator
A fixed deposit does one thing well: it returns your money with a known amount of interest on a known date. No surprises. For an emergency fund or money you need in two years, that certainty is worth more than a higher expected return.
What FDs do badly is grow wealth. This calculator shows you both sides — the maturity amount your bank advertises, and what that amount is actually worth after inflation has taken its share. When the FD rate is 7% and inflation is 6%, the honest real return is about 1%, and that is before tax. Useful to know before locking money away for five years.
After 31% tax (incl. 4% cess) on the interest, you keep about 6,42,684.
How it works
- 01Maturity = P × (1 + r/n)^(n×t), with n set by your bank's compounding frequency — quarterly for most Indian banks.
- 02Interest earned is simply maturity minus your deposit.
- 03"Worth in today's money" discounts the maturity amount by inflation over the same period, showing the real purchasing power you end up with.
Frequently asked
Is FD interest taxable?+
Yes. It is added to your income and taxed at your slab rate, and banks deduct TDS once interest crosses the annual threshold. That makes the after-tax return meaningfully lower than the headline rate, especially in higher slabs.
What happens if I break an FD early?+
You get a reduced rate — usually the rate applicable for the period actually completed, minus a penalty of around 0.5–1%. Splitting a large deposit into several smaller FDs avoids this: you break only the one you need.
FD or debt mutual fund?+
FDs give certainty and deposit insurance up to ₹5 lakh per bank. Debt funds often yield a little more and let you withdraw any day without penalty, but the value can move. For an emergency fund, an FD or liquid fund is the right call.
Do senior citizens get better rates?+
Yes, typically 0.25–0.75% above the standard rate at most banks, and small finance banks often offer more. If a parent qualifies, it is worth comparing before you commit.