Calculate maturity amount, interest earned, and tax implications for your fixed deposits
Compare different compounding frequencies to maximize your returns.
Compounding | Maturity Amount | Interest Earned | Effective Rate |
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Calculate the tax implications on your FD interest earnings.
Calculate FD maturity amount with precise compound interest formulas
Adjust investment amount, interest rate, time period, and compounding frequency
Understand tax impact on your FD interest earnings based on your tax slab
Compare different compounding frequencies to maximize your returns
A Fixed Deposit (FD) is a financial instrument provided by banks and financial institutions which provides investors a higher rate of interest than a regular savings account, until the given maturity date. It may or may not require the creation of a separate account.
FD interest can be calculated using two methods:
Interest earned on Fixed Deposits is taxable under "Income from Other Sources" in India. The tax rate depends on your income tax slab under the new tax regime:
Additionally, if the interest earned exceeds ₹40,000 in a financial year (₹50,000 for senior citizens), the bank will deduct TDS (Tax Deducted at Source) at 10%.
Note: You can claim tax exemption on interest income under section 80TTB up to ₹50,000 for senior citizens.
Cumulative FDs: Interest is compounded and paid along with the principal at maturity. This option is good for those who don't need regular interest payouts.
Non-Cumulative FDs: Interest is paid out at regular intervals (monthly, quarterly, half-yearly, or yearly) as per the depositor's choice. This option is good for those who need regular income.
The more frequently interest is compounded, the higher the returns. For example, if interest is compounded monthly instead of annually, you'll earn more over the same period because the interest is calculated on the principal plus previously earned interest more frequently.