FD Calculator

How FD interest is calculated

Banks add interest to a cumulative deposit every quarter, so it compounds four times a year:

Maturity = P × (1 + r ÷ 4) ^{4 × T}

Example: ₹1,00,000 at 7% for 5 years matures at ₹1,41,478: ₹41,478 interest. With the interest paid out instead, you get ₹1,750 every quarter and the ₹1,00,000 back at the end.

Paid every month, the quarter's interest is discounted for coming a month or two early, so a month pays a little less than a third of it:

Interest a month = P × (r ÷ 4) ÷ ((1 + r ÷ 12)² + (1 + r ÷ 12) + 1)

₹1,00,000 at 7% pays ₹580 a month, against ₹1,750 a quarter.

FD interest per month on ₹1 lakh to ₹1 crore

At 7%, an FD of ₹10 lakh that pays its interest every month pays ₹5,799 a month, and ₹1 crore pays ₹57,994; the deposit comes back at maturity. At other rates:

Choose "Every month" under "Interest paid" to work it out at your bank's rate and tenure.

TDS on FD interest, and the senior citizen limit

FD interest is income, taxed at your slab every year as it is earned, even on a deposit that pays it only at maturity. Once a year's interest at one bank, all your deposits there together, is over ₹50,000 (₹1 lakh if you are 60 or more), the bank deducts 10% of it as TDS (20% if it does not have your PAN).

Example: ₹10,00,000 at 7% for 5 years earns ₹71,859 in the first year, so ₹7,186 is deducted, and more each year after. With ₹40,887 deducted in all, and that money earning no more interest, the bank credits ₹13,67,985 at maturity instead of ₹14,14,778.

• TDS is not an extra tax: it counts towards your tax for the year, and you claim it in your return. The income tax calculator shows the tax on your whole income.
• If your tax for the year is nil, give each bank Form 121 at the start of the year (it replaced Forms 15G and 15H) and it deducts none.
• The calculator works out TDS as if this were your only deposit at the bank: other deposits there add to the interest that is checked against the limit. Choose "Yes" under "Senior citizen" for the higher limit.

Post office FD (time deposit)

The post office's time deposit, for 1, 2, 3 or 5 years, works out interest every quarter but pays it once a year, so each year pays what a 1-year FD earns: ₹7,186 on ₹1,00,000 at 7%.

To work it out here, choose 1 year, "At maturity" and the post office's rate for your tenure: the interest shown is one year's payout, the same every year until the deposit is repaid. The 5-year deposit counts under 80C in the old regime.

Good to know

• Deposits shorter than six months (180 days) earn simple interest, paid at maturity: no quarterly or monthly payout.
• Only full quarters compound: the days left over after the last full quarter earn simple interest on the total (a 400-day deposit compounds for 4 quarters, then earns 35 days' simple interest). Choose "Days" for a tenure such as 444 days.
• Banks set their own rates for senior citizens and for each tenure: enter the one you are offered.
• Breaking an FD early usually costs a penalty on the rate.

Questions

ఎఫ్‌డీ వడ్డీ ఎలా లెక్కిస్తారు?

బ్యాంకులు ఫిక్స్డ్ డిపాజిట్‌పై వడ్డీని మూడు నెలలకోసారి అసలుకు కలుపుతాయి (చక్రవడ్డీ). ₹1,00,000ను 7% వడ్డీకి 5 ఏళ్లు ఉంచితే మెచ్యూరిటీకి ₹1,41,478 వస్తుంది. నెలనెలా వడ్డీ తీసుకుంటే ₹10,00,000పై 7%కు నెలకు ₹5,799 వస్తుంది.

ఒక బ్యాంకులో ఏడాది వడ్డీ ₹50,000 దాటితే (సీనియర్ సిటిజన్లకు ₹1,00,000) బ్యాంకు 10% టీడీఎస్ మినహాయిస్తుంది. పోస్టాఫీసు టైమ్ డిపాజిట్ వడ్డీని ఏటా ఒకసారి చెల్లిస్తుంది.