Work out the maturity value and total interest on a bank fixed deposit, choosing the compounding frequency your bank actually uses and optionally applying TDS.
Maturity is M = P × (1 + r/f)^(f×n), where f is the number of compounding periods per year — 12 for monthly, 4 for quarterly, 1 for yearly. Most Indian banks compound FDs quarterly. When TDS is enabled, 10% is deducted on interest above the ₹40,000 annual threshold under Section 194A.
Banks deduct TDS at 10% once interest across your deposits with that bank crosses ₹40,000 in a financial year (₹50,000 for senior citizens). TDS is not the final tax — FD interest is fully taxable at your slab rate, so you may owe more or be due a refund when you file.
It helps, but modestly. On a ₹1 lakh deposit at 7% for 5 years, monthly compounding returns only a few hundred rupees more than quarterly. The headline interest rate matters far more than the frequency.
FDs give a guaranteed, known return and are insured up to ₹5 lakh per bank by DICGC. Debt funds carry some risk but are more liquid. Since the 2023 rules, both are taxed at your slab rate, so the tax advantage debt funds once had over FDs no longer applies.
This calculator is for information only and is not investment, tax, or financial advice. Figures are estimates based on the assumptions you enter and are not a guarantee of future returns. Consult a SEBI-registered adviser or a qualified tax professional before acting.