2026 FD Calculator: Maturity, TDS and Payout

Find your FD maturity and interest with quarterly compounding, compare cumulative against monthly and quarterly payout, and see the interest after TDS.

Option	Income	Total interest
Cumulative (at maturity)	Paid at maturity	₹41,478
Monthly payout	₹583 / month	₹35,000
Quarterly payout	₹1,750 / quarter	₹35,000

How the FD calculator works

A fixed deposit is a lump sum locked with a bank for a set term at a fixed rate, and a cumulative FD compounds that interest every quarter until it matures. This calculator takes your deposit, the rate and the tenure, then shows the maturity value, the interest earned, the monthly income if you pick a payout FD instead, and the interest left after TDS. The rate stays editable, so it fits any bank or the post office, whatever quote you have in hand.

On the default numbers the growth is steady. A ₹1,00,000 deposit at 7% for 5 years matures to about ₹1,41,478, so it earns ₹41,478 of interest, all paid together at the end. Push the deposit to ₹10,00,000 and the same rate returns about ₹14,14,778.

The FD maturity formula

FD maturity for a cumulative deposit is the principal compounded quarterly at the rate, written as M = P times (1 + r/4) to the power of 4 times the years. Banks in India compound FD interest four times a year, so the exponent counts the quarters in the term. A ₹2,00,000 deposit at 6.5% for 2 years gives 2,00,000 times 1.01625 to the power 8, which is ₹2,27,528, matching the bank calculators.

Quarterly compounding is why an FD beats simple interest by a small margin. On the default certificate the quarterly method earns ₹41,478 where plain simple interest would earn ₹35,000, a difference of ₹6,478 that comes purely from interest earning interest four times a year.

Cumulative or monthly payout

A cumulative FD reinvests the interest and pays the whole amount at maturity, while a monthly payout FD pays simple interest as income each month and returns only the principal at the end. The payout option gives you a regular cheque, but it gives up compounding, so it earns less overall. The comparison table above lays out all three modes for your own deposit.

Option	What you receive	Interest on ₹1,00,000 at 7% for 5 yr
Cumulative	₹1,41,478 at maturity	₹41,478
Monthly payout	₹583 a month plus principal back	₹35,000
Quarterly payout	₹1,750 a quarter plus principal back	₹35,000

The gap widens with the size and the term of the deposit, so for money you do not need as income, the cumulative option quietly wins.

How much monthly income an FD pays

A monthly payout FD pays the deposit times the annual rate divided by 12 each month, so ₹1,00,000 at 7% pays about ₹583 a month. Scale that up and the income scales with it: ₹10,00,000 pays about ₹5,833 a month, and ₹20,00,000 pays about ₹11,667. The principal is not touched and comes back in full when the FD matures.

This is the number behind searches like "1 lakh FD interest per month". It is simple interest, so unlike the cumulative maturity it does not grow, and the monthly figure is the same every month for the whole term.

Breaking an FD early costs you twice

A premature withdrawal is not simply your rate less a penalty: the bank first re-rates the deposit to the rate that applied to the period you actually held it, and then takes the penalty off that. Those are two reductions in sequence, and the first one is usually the larger.

Take a 5-year deposit booked at 7% and broken after a year, when the bank's one-year card rate is 6.5% and its penalty is 1%:

What people expect	What actually happens
7% less the 1% penalty, so 6%	the 6.5% one-year rate less 1%, so 5.5%
₹6,000 of interest on ₹1,00,000	₹5,500

The published penalty is also less uniform than the usual "0.5% to 1%" suggests. Kotak charges nothing up to 180 days, 0.50% from 181 to 364 days and 1.00% from 365 days, paying interest at the lower of your contracted rate or the rate applicable on the deposit date. SBI charges 0.50% up to ₹5 lakh and 1% above it. HDFC charges 1% flat.

This calculator prices a deposit held to maturity, so none of the above is modelled here. It is worth knowing before you book a long tenure with money you might need.

How much of your FD is actually insured

Bank deposits are insured by the DICGC up to ₹5 lakh per depositor per bank, and that limit covers your principal and the accrued interest together. It applies per bank, not per branch, so three accounts at the same bank share one ₹5 lakh ceiling.

The combination is what catches people. A ₹5 lakh deposit sits exactly at the cap on the day it is opened, and the first quarter's interest takes it past:

Deposit at 7% for 5 years	Matures at	Sitting outside the cover
₹1,00,000	₹1,41,478	nothing
₹5,00,000	₹7,07,389	₹2,07,389

Run it the other way and the largest deposit still wholly covered at maturity, on those terms, is about ₹3,53,412. Above that, splitting across banks is what keeps the whole balance insured, which is the practical reason people hold FDs at more than one.

Tax on FD interest, and TDS

FD interest is fully taxable at your income tax slab, and banks deduct 10% TDS once your annual FD interest crosses ₹50,000, or ₹1,00,000 for senior citizens, from FY2025-26. The general threshold rose from ₹40,000 and the senior threshold from ₹50,000 with effect from 1 April 2025, and plenty of published guides still quote the old pair. If you arrived expecting deduction to start at ₹40,000 of interest, it starts ₹10,000 later than that. If you have not given your PAN the bank deducts 20%. Form 121 stops the deduction when your estimated total income for the year is nil. It replaced Forms 15G and 15H on 1 April 2026, folding the separate under-60 and 60-plus declarations into one, and it is filed under section 393(6) with the bank at the start of the year.

On the default ₹1,00,000 deposit the annual interest is only ₹7,000, so no TDS applies. Raise the deposit to ₹10,00,000 and the annual interest of ₹70,000 crosses the general limit, so a general depositor sees about ₹41,478 deducted across the term, while a senior citizen, with the ₹1,00,000 limit, sees none. The calculator treats this as cashflow, since TDS is adjusted against your final tax, not an extra charge.

Senior citizens and the post office

Most banks add about 0.25% to 0.50% to the FD rate for depositors aged 60 and above, on top of the higher ₹1,00,000 TDS-free limit. The uplift varies by bank, so enter your bank senior rate in the calculator and switch on the senior toggle to apply the higher tax-free limit. The SCSS calculator covers the dedicated senior citizen scheme, which pays more than a regular FD.

The post office time deposit is the same idea run by India Post, with tenures of 1, 2, 3 and 5 years and the same quarterly compounding, so this tool works for it once you enter the post office rate. For a steady monthly cheque, the POMIS calculator covers the post office monthly income scheme.

The tax-saving FD is a different product

A 5-year tax-saving FD earns a Section 80C deduction of up to ₹1.5 lakh on the deposit, and it gives up most of the flexibility an ordinary FD has to get it. The 5-year post office time deposit carries the same deduction. Before choosing one, the restrictions are worth reading together:

The deduction is on the principal only. The interest is fully taxable every year at your slab, so this is nothing like PPF.
The 5-year lock-in is mandatory, and premature withdrawal is not permitted at all, even at a penalty.
You cannot take a loan against it during the lock-in either, which an ordinary FD allows.
In a joint tax-saving FD, only the first holder can claim the deduction.

So it buys a one-off deduction at the cost of five years of access. The PPF calculator covers the alternative 80C route whose interest is genuinely tax-free, and the ELSS calculator the market-linked one with a three-year lock-in.

What this does not promise

FD rates are set by each bank and change often, so the maturity here reflects the rate you enter, not a live quote. The TDS figure is an estimate on the current thresholds and is adjusted against your total tax, so your real tax depends on your slab. Premature withdrawal reduces the rate by 0.5% to 1% and pays interest only for the period held, which this tool does not model. FD terms are set by the bank and the RBI, and this is not investment or tax advice, so a qualified adviser can confirm how a deposit fits your plans.

Frequently asked questions

What is an FD calculator? An FD calculator works out the maturity value and interest of a fixed deposit from your deposit, the interest rate and the tenure. It uses quarterly compounding, the Indian bank standard, so a ₹1,00,000 FD at 7% for 5 years matures to about ₹1,41,478.

How is FD maturity calculated? FD maturity for a cumulative deposit is M = P times (1 + r/4) to the power of 4 times the years, since banks compound interest quarterly. With P as the deposit, r the annual rate as a decimal and the exponent counting the quarters, a ₹2,00,000 FD at 6.5% for 2 years matures to ₹2,27,528.

What is the difference between a cumulative and a monthly payout FD? A cumulative FD reinvests the interest and compounds it quarterly, paying the whole amount at maturity, while a monthly payout FD pays simple interest as income each month and returns only the principal at the end. Because compounding is lost, the payout option earns less: ₹1,00,000 at 7% for 5 years earns ₹41,478 cumulative against ₹35,000 as monthly payout.

How much monthly income does an FD pay? A monthly payout FD pays the deposit times the annual rate divided by 12 each month, so ₹1,00,000 at 7% pays about ₹583 a month, and ₹10,00,000 pays about ₹5,833 a month. The principal is returned separately when the FD matures.

Is FD interest taxable, and what is the TDS? FD interest is fully taxable at your income tax slab, and banks deduct 10% TDS once your annual FD interest crosses ₹50,000, or ₹1,00,000 for senior citizens, from FY2025-26. Without a PAN the TDS is 20%. Form 121, which replaced Forms 15G and 15H on 1 April 2026, stops the deduction if your estimated total income for the year is nil.

What happens if I break an FD before maturity? Two reductions apply in sequence. The bank first re-rates the deposit to the rate that applied to the period you actually held it, so a 5-year deposit broken after a year is paid the one-year rate, and then it deducts a penalty of 0.5% to 1%. On a 5-year FD booked at 7% and broken at a year, with a 6.5% one-year rate and a 1% penalty, you receive 5.5%, where 7% less the penalty would suggest 6%.

How much of my FD is insured? The DICGC insures ₹5 lakh per depositor per bank, and that ceiling covers principal and accrued interest together, per bank rather than per branch. A ₹5 lakh deposit is therefore at the cap on day one: at 7% over 5 years it matures at ₹7,07,389, leaving ₹2,07,389 outside the cover. The largest deposit still wholly insured at maturity on those terms is about ₹3,53,412.

What is a tax-saving FD and how is it different? It is a 5-year deposit that earns a Section 80C deduction of up to ₹1.5 lakh on the principal. The interest is still fully taxable each year, the 5-year lock-in is mandatory with no premature withdrawal, no loan can be taken against it while locked in, and in a joint deposit only the first holder can claim the deduction.

Do senior citizens get a higher FD rate? Most banks add about 0.25% to 0.50% to the FD rate for senior citizens aged 60 and above, and the TDS-free interest limit is higher at ₹1,00,000 a year. The exact rate varies by bank, so enter your bank senior rate in the calculator.

What happens if I break an FD early? On a premature withdrawal, banks usually pay interest for the period actually held and reduce the applicable rate by 0.5% to 1% as a penalty. The exact reduced rate depends on the bank and the tenure, so the final amount is lower than the maturity value shown here.

Does the post office FD work the same way? The post office time deposit is a fixed deposit with tenures of 1, 2, 3 and 5 years, and it compounds quarterly like a bank FD, so this calculator works for it too once you enter the post office rate. The 5-year post office time deposit also qualifies for a Section 80C deduction.

FD (fixed deposit) calculator

Cumulative vs payout

Key takeaways