FD Calculator with TDS Deduction
💰 Investment Breakdown
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Calculate FD Returns with Tax Deduction (TDS) | India 2025
Everything you need to know about Fixed Deposits, interest rates, tax implications, and smart investment strategies for 2025.
A Fixed Deposit (FD) is a secure investment instrument offered by banks and financial institutions where you deposit a lump sum amount for a predetermined period at a fixed interest rate. The principal amount and interest rate remain guaranteed throughout the tenure.
FDs are considered one of the safest investment options in India, making them ideal for risk-averse investors who prioritize capital preservation over high returns. They offer predictable income and are backed by deposit insurance for added security.
Fixed Deposit interest is calculated using compound interest formula where you earn interest not only on your principal amount but also on the accumulated interest. Most banks compound interest quarterly, which means your interest is calculated and added to the principal every three months.
Banks automatically deduct TDS at 10% when your FD interest exceeds certain annual limits. This is a prepaid tax that gets adjusted against your final tax liability when you file your income tax return.
Standard fixed deposits where you invest a lump sum for a predetermined period. Available with flexible tenure options from 7 days to 10 years.
Special FDs with 5-year mandatory lock-in offering tax deduction up to ₹1.5 lakh under Section 80C. Interest earned is still taxable as per your income slab.
Enhanced interest rates for individuals aged 60 and above. Typically offer 0.25% to 0.75% extra interest compared to regular FDs.
Cumulative FDs reinvest interest for compounding; Non-cumulative FDs pay interest at regular intervals (monthly/quarterly/annually).
| Bank Type | Interest Rate Range | Best Tenure | Special Features |
|---|---|---|---|
| Public Sector Banks | 3.5% - 7.2% | 2-3 years | High safety, extensive branch network |
| Private Banks | 4.0% - 7.8% | 1-2 years | Digital features, better service |
| Small Finance Banks | 6.5% - 9.0% | 1-3 years | Highest rates, limited branches |
| Non-Banking Finance Companies | 7.0% - 10.5% | 1-5 years | High returns, higher risk |
Divide your investment across multiple FDs with different maturity dates. This provides regular liquidity and helps you benefit from changing interest rate cycles.
Compare rates across different banks and financial institutions. Small finance banks often offer 1-2% higher rates than traditional banks.
Monitor RBI policy announcements. Lock in higher rates when the central bank is in a rate-hiking cycle.
| Investment | Expected Returns | Risk Level | Liquidity | Tax Treatment |
|---|---|---|---|---|
| Fixed Deposits | 6-8% | Very Low | Medium | Taxable as income |
| PPF | 7.1-8% | Very Low | Low | Tax-free |
| Equity Mutual Funds | 10-15% | High | High | LTCG tax applicable |
| Debt Mutual Funds | 7-9% | Low-Medium | High | LTCG tax applicable |
Yes, but premature withdrawal typically attracts a penalty of 0.5% to 1% on the applicable interest rate. The exact penalty varies by bank and completed tenure.
For cumulative FDs, interest is compounded and paid at maturity. For non-cumulative FDs, interest is paid out at regular intervals (monthly, quarterly, or annually) as chosen.
FDs with scheduled banks are insured by DICGC up to ₹5 lakh per depositor per bank, covering both principal and accrued interest.
Auto-renewal ensures continuity but may lock you into potentially lower rates. Evaluate market conditions before deciding.