Regular Fixed Deposit Calculator
FD Maturity Details
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Interest Earned₹0
TDS Deducted (10%)₹0
Net Interest After TDS₹0
Maturity Amount₹0
Senior Citizen FD Calculator
Senior citizens get 0.5% extra interest rate
FD Maturity Details
Principal₹0
Interest Earned₹0
TDS Deducted (Seniors: 50% exemption)₹0
Net Interest After TDS₹0
Maturity Amount₹0
Tax-Saving FD (5-Year Lock-in)
Tax-Saving FDs offer 80C tax deduction up to ₹1,50,000 per financial year. Fixed 5-year lock-in period. Cannot be withdrawn before maturity except under specific circumstances.
Tax-Saving FD Maturity Details (5 Years)
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Interest Earned₹0
80C Tax Benefit (@ 30% slab)₹0
Maturity Amount (after TDS)₹0
Effective Return with Tax Savings₹0
Understanding FD Interest & Taxation
Compounding:Interest is added to principal and future interest is earned on this combined amount. More frequent compounding = higher maturity amount.
TDS (Tax Deducted at Source):If FD interest exceeds ₹40,000 in a financial year (₹50,000 for senior citizens), 10% TDS is deducted automatically. You can claim credit when filing taxes.
Formula for Compound Interest:
A = P × (1 + r/n)^(n×t)
Where: A = Final Amount, P = Principal, r = annual rate, n = compounding frequency per year, t = time in years
FAQs
Can I break my FD before maturity?
Yes, but with penalties. Premature withdrawal usually attracts 0.5-1% penalty on interest earned. Some banks allow penalty-free withdrawal after a minimum period (usually 7 days). Tax-Saving FDs cannot be broken before 5 years except in emergencies (medical, higher education) with documentary proof. Always check with your bank's specific policy.
Is FD interest taxable?
Yes, FD interest is fully taxable as per your income tax slab. However, TDS is deducted at source (10%) if interest exceeds ₹40,000/year. This TDS is creditable against your total tax liability when filing returns. Tax-Saving FDs offer 80C deduction, reducing your overall taxable income by the invested amount.
What's the difference between FD interest and returns on other investments?
FD offers guaranteed returns (6-7%) regardless of market conditions. Mutual Funds/Stocks offer higher potential returns (12-18%) but with market risk. Savings Account gives minimal interest (3-4%). For risk-averse investors and emergency funds, FD is ideal. For wealth creation over 10+ years, equity investments typically outperform FDs.
Should I choose monthly, quarterly, or annual compounding?
More frequent compounding = slightly higher returns. Monthly compounding gives ~3-5% more than annual compounding over 5 years on same principal and rate. However, the difference is marginal (usually ₹500-1000 on ₹1L principal). Choose based on your bank's offerings. For most retail FDs, quarterly or monthly compounding is standard.