Is bank FD interest taxable?

Yes, FD and RD interest is fully taxable at your personal income tax slab rate under 'Income from Other Sources'. Banks deduct 10% TDS if interest exceeds ₹40,000 per financial year (₹50,000 for senior citizens).

FD & RD Calculator

Investment Amount

₹

Interest Rate

Tenure

Yrs

Mos

Maturity Details

Maturity Value

₹0

Invested

₹0

Interest

₹0

Guide & Methodology

About the Fixed Deposit (FD) & Recurring Deposit (RD) Calculator

Compute interest earned and maturity proceeds for bank Fixed Deposits and Recurring Deposits with quarterly compounding.

What this calculator does

Calculates guaranteed returns on lump sum FDs and monthly RD installments.
Applies quarterly compounding as standard across Indian commercial banks.
Estimates TDS deduction for interest income crossing statutory thresholds.

How it Works & Key Inputs

Step 1

Select Deposit Type

Choose Fixed Deposit (lump sum) or Recurring Deposit (monthly).

Step 2

Deposit Amount & Tenure

Input deposit sum and tenure in months or years.

Step 3

Interest Rate & Compounding

Enter bank interest rate (e.g. 7.0% - 7.75% for senior citizens).

Core Calculation Parameters

Deposit PrincipalTotal initial deposit (FD) or monthly deposit (RD).

Interest Rate (%)Annual interest rate offered by the financial institution.

Compounding FrequencyQuarterly compounding (4 times per year) for Indian bank FDs.

Formula & Calculation Logic

Mathematical Model

FD: A = P × (1 + r / 4)^(4 × t) | RD: M = P × [(1 + r/4)^(4t) - 1] / [1 - (1 + r/4)^(-1/3)]

Quarterly compounded interest equations for fixed and recurring deposits.

Variables Breakdown

PPrincipal or monthly installment

rAnnual interest rate

tTenure in years

Frequently Asked Questions (FAQ)

Disclaimer: This calculator is provided for educational and illustrative purposes only. Actual financial outcomes may vary based on statutory changes, lender terms, fund fees, and prevailing market dynamics.