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Fixed Deposit Calculator

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About This Tool

Fixed Deposit Calculator – FD Maturity, Payouts and TDS the Way Banks Compute Them

A fixed deposit (FD) looks simple: you lock in a sum at a fixed rate for a fixed time. The amount you actually receive, though, depends on conventions that most online FD calculators skip. These include quarterly compounding counted from your deposit date, simple interest on short deposits, discounted monthly payouts, and tax deducted every financial year even when nothing is paid out. This calculator follows the way Indian banks compute and pay FD interest, so its figures match your bank's FD receipt much more closely than a plain compound-interest formula.

How FD interest is calculated

For a cumulative (reinvestment) FD, banks compound interest every quarter. A quarter here means three calendar months from the deposit date, not the January–March calendar quarter. After k full quarters the balance is:

A = P × (1 + r/4)^k

Any days left over after the last full quarter earn simple interest on that compounded balance: Maturity = A × (1 + r × days / 365). At 7% for 5 years, ₹1,00,000 grows to ₹1,41,477.82. For 1 year, 6 months and 15 days it grows to ₹1,11,289.46: six quarters of compounding, then 15 days of simple interest.

Short deposits are different. Many banks pay only simple interest (P × r × days / 365) on deposits shorter than about six months, so a 90-day FD of ₹1 lakh at 7% earns ₹1,726.03. You can change that cut-off, and the compounding frequency, under Advanced.

Monthly, quarterly and annual payout FDs

With a non-cumulative FD the principal stays fixed and the interest is paid to your account at regular intervals. A quarterly payout is simply P × r / 4. Half-yearly and annual payouts are the compounded quarterly interest for six or twelve months, which is why the annual payout on 7% is ₹7,185.90 rather than ₹7,000.

The monthly payout is usually discounted. Banks work out the quarterly interest and then find the monthly amount that, paid one and two months earlier, is worth the same. At 7% on ₹1 lakh that is ₹579.94 a month, not ₹583.33. A few banks pay the undiscounted figure, and you can switch to it with one checkbox.

TDS on fixed deposits, year by year

FD interest is taxed in the year it accrues, not the year it is paid. Banks therefore deduct TDS under Section 194A every financial year (1 April – 31 March) once your interest at that bank crosses the threshold. That is ₹50,000 for most depositors and ₹1,00,000 for senior citizens. TDS is 10% if you have given the bank your PAN and 20% if you have not.

The calculator splits your interest across financial years, compares each year with the threshold and shows the estimated TDS in a chart and table. This explains why a large five-year cumulative FD has tax deducted every year, even though you receive nothing until maturity. On a cumulative FD the TDS comes out of the deposit balance, so the amount credited at maturity is lower than the gross figure.

TDS is not your final tax
TDS is only an advance. FD interest is added to your income and taxed at your slab rate. Choose your slab to see the post-tax interest and post-tax yield. If your total income is below the taxable limit, submitting Form 15G (or 15H if you are 60 or older) at the start of the year stops TDS.

Breaking an FD early

In the premature withdrawal tab you enter the date you plan to withdraw, the bank's card rate for the period you actually held the deposit, and the penalty (commonly 0.5–1%). The bank pays the lower of the booked rate and the held-tenure rate, minus the penalty, and recalculates interest from scratch. On a payout FD, any interest already paid above the recalculated amount is deducted from your principal. The tool shows the amount you receive, the interest you give up and the effective rate you end up earning.

Deposit insurance and practical tips

  • DICGC cover protects up to ₹5 lakh per depositor per bank, principal and interest together. The calculator flags deposits that will grow past that limit.
  • Senior citizens usually earn an extra 0.50% p.a., and some banks add more for depositors aged 80 and above. The extra rate is editable.
  • Compare effective yields, not headline rates. A 7% quarterly-compounded FD yields about 7.186% a year.
  • Use Copy link to save or share an exact calculation, and download the full schedule as CSV for your records.
Rates and rules vary by bank
Interest conventions, short-deposit rules and penalties differ between banks, and tax thresholds change with each Union Budget. Treat the results as close estimates, and rely on your bank's FD advice for exact figures.

Frequently Asked Questions

Is the Fixed Deposit Calculator free?

Yes, Fixed Deposit Calculator is totally free :)

Can I use the Fixed Deposit Calculator offline?

Yes, you can install the webapp as PWA.

Is it safe to use Fixed Deposit Calculator?

Yes, any data related to Fixed Deposit Calculator only stored in your browser (if storage required). You can simply clear browser cache to clear all the stored data. We do not store any data on server.

How does this FD calculator work?

It follows Indian bank practice. Cumulative deposits compound quarterly from the deposit date, leftover days after the last full quarter earn simple interest, and deposits shorter than about six months earn simple interest only. It then splits the interest into financial years to estimate TDS, and it can also price a premature withdrawal.

Why is the monthly payout lower than the annual interest divided by 12?

Banks price interest on a quarterly basis. A monthly payout is the quarterly interest discounted so that three monthly payments, received earlier, are worth the same as one quarterly payment. At 7% on ₹1 lakh that gives ₹579.94 a month instead of ₹583.33. Some banks pay the undiscounted figure, which you can switch on under Advanced.

Is FD interest taxable even if I choose the cumulative option?

Yes. Interest is taxable in the year it accrues, not when it is paid, so a 5-year cumulative FD is taxed every financial year. Banks deduct TDS each year once your interest at that bank crosses the threshold, and the balance of tax is payable at your slab rate when you file your return.

How can I avoid TDS on my fixed deposit?

Submit Form 15G (below 60) or Form 15H (60 and above) to the bank at the start of each financial year. You can do this only if the tax on your total income is nil. Furnishing your PAN does not remove TDS, but without it the rate doubles from 10% to 20%.

What happens if I break my FD early?

The bank recalculates interest for the period you actually held the deposit, at the rate it offered for that shorter tenure or the booked rate, whichever is lower, and then subtracts a penalty, typically 0.5–1%. On a payout FD, any interest already paid above the recalculated amount is recovered from your principal.

Is my fixed deposit insured if the bank fails?

Deposits at banks in India are insured by the DICGC up to ₹5 lakh per depositor per bank, covering principal and interest together. Anything above that is at risk, so larger sums are often split across several banks.