Is FD interest taxable?

Yes. It is added to your income and taxed at your slab rate, whether you receive it yearly or at maturity.

When does the bank deduct TDS on FD interest?

When interest from the bank exceeds ₹50,000 in a year (₹1 lakh for senior citizens). Submit a self-declaration (Form 15G/15H, now under Section 393(6) (old section 197A)) if your total income is below the taxable limit.

Do senior citizens get a higher FD rate?

Most banks pay senior citizens 0.25–0.50% a year more. Enter the rate you are offered.

Loans & Savings · Updated for tax year 2026-27

FD Calculator — Fixed Deposit Maturity

FD maturity = P × (1 + r/n)^(n × t), where P is the deposit, r the annual rate, n the number of compounding periods a year (4 for quarterly, which most banks use) and t the tenure in years. Deposits shorter than six months usually earn simple interest. Enter the amount, rate and tenure to see the maturity value.

Enter your details

Values you enterComputed values

Deposit amount

Interest rate

Tenure

Compounding

Result

Maturity value

₹1,07,186

Deposit₹1,00,000

Interest earned₹7,186

Effective annual yield7.19%

DepositInterest

Disclaimer: Computed to the best of our knowledge, as per the law — including the section changes under the Income-tax Act, 2025 — in force on the date this website was last deployed (28 Sep 2026). Results are estimates for guidance only and are not tax, legal or investment advice. Please verify with the Act, rules and notifications, or a qualified professional, before relying on them. Rates and limits last reviewed on 28 Sep 2026.

How to use the FD Calculator

1
Enter the deposit amount.
2
Enter the annual interest rate offered by the bank (senior citizens usually get 0.25–0.50% more).
3
Enter the tenure in months.
4
Choose how often interest is compounded — quarterly is the default for most banks.

FD formula

Maturity = P × (1 + r/n)^(n × t)

Under 6 months: Maturity = P × (1 + r × t) (simple interest)

Effective yield = (1 + r/n)^n − 1

FD interest is taxable at your slab rate every year, even if paid only at maturity. Banks deduct TDS under Section 393 (old sec. 194A) once interest crosses the threshold — ₹50,000 a year, or ₹1 lakh for senior citizens.

Worked example

₹1,00,000 for 12 months at 7% compounded quarterly matures at ₹1,07,186 — interest of ₹7,186.
The effective yield is 7.19% a year, a little above the quoted 7% because of quarterly compounding.

Cumulative vs payout FDs

In a cumulative FD, interest is reinvested and paid with the principal at maturity — that is what this calculator shows. In a payout FD, interest is paid out monthly or quarterly, so it does not compound and the total interest is lower.

Frequently asked questions

Most banks compound quarterly: Maturity = P × (1 + r/4)^(4 × t). Deposits of less than six months usually earn simple interest.