FD Calculator

FD interest uses compound interest: A = P(1 + r/n)^(nt). Most Indian banks compound quarterly.

Banks deduct TDS at 10% on FD interest exceeding Rs 40,000/year (Rs 50,000 for senior citizens).

Yes, most Indian banks offer 0.25% to 0.50% higher interest rates for senior citizens (age 60+).

Yes. If your total annual income is below the basic exemption limit, you can submit Form 15G (for individuals below 60) or Form 15H (for senior citizens) to your bank at the start of the financial year. The bank will not deduct TDS if valid forms are submitted. The form must be submitted fresh at the beginning of each financial year.

An FD involves a single lump sum deposit for a fixed period. An RD involves regular monthly deposits of a fixed amount for a chosen tenure. FD interest is generally higher than RD for the same amount and period because in an FD the full principal earns interest from day one, while RD instalments start accruing interest only from their respective deposit dates.

FD returns are guaranteed and predictable. Debt mutual funds carry credit risk and interest rate risk but offer potential for higher post-tax returns due to indexation benefits (for gains held over 3 years before April 2023 — this benefit has since been removed). Post-April 2023, debt fund gains are taxed at slab rate regardless of holding period, making long-term FDs at 7-8% competitive for investors in the 20-30% bracket.