FD Calculator

Indian banks compound interest on term deposits quarterly, following the Indian Banks Association convention. Small finance banks and NBFCs sometimes offer monthly or yearly compounding, which is why the option is there. The effective yield shown is the true annual rate after compounding.

For tenures under a quarter or two, banks generally pay simple interest for the period rather than compounding. This tool compounds throughout, so for a very short deposit the maturity figure may be a few rupees above what the bank credits.

Yes, once interest from a bank exceeds ₹50,000 in a year (₹1,00,000 for a senior citizen), the bank deducts 10% TDS under section 194A — 20% without a PAN. Submitting Form 15G or 15H stops the deduction if your total income is below the taxable limit.

Interest is added to your income and taxed at your slab rate, whether or not the bank deducted TDS. It is taxable on an accrual basis each year, so on a cumulative deposit you declare the interest yearly, not just at maturity. Senior citizens can claim up to ₹50,000 of bank interest as a deduction under section 80TTB in the old regime.

Yes, but most banks pay interest at the rate applicable to the period the money actually stayed, less a penalty of around 0.5 to 1%. Tax-saver FDs with a five-year lock-in cannot be withdrawn early at all.