FD maturity + after-tax return.
Maturity value
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Interest earned
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Tax on interest
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Your breakdown
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Worked example
Take a fixed deposit of Rs 5,00,000 at 7 percent annual interest for 5 years, with interest compounded quarterly, for a saver in the 30 percent tax slab. Quarterly compounding means the rate per quarter is 7 percent divided by 4, which is 1.75 percent, applied over 5 times 4, or 20 quarters. The maturity value is the deposit multiplied by 1.0175 raised to the power 20, which comes to about Rs 7,07,389. The interest earned is therefore about Rs 2,07,389. FD interest is fully taxable at your slab rate, so at 30 percent the tax is about Rs 62,217, leaving an after-tax maturity of about Rs 6,45,172. For a saver in the 30 percent bracket the post-tax return is meaningfully lower than the headline 7 percent, which is why higher-bracket investors often compare FDs against tax-free options like PPF.
How it is calculated
Indian bank FDs compound quarterly, so the calculator takes the annual rate, divides it by four to get the quarterly rate, and raises 1 plus that rate to the number of quarters, which is the years multiplied by four. Multiplying the deposit by this factor gives the maturity value, and subtracting the deposit gives the interest. Because FD interest is taxable at your slab rate every year it accrues, the tool applies your chosen slab to the total interest to show the tax and the after-tax maturity. Banks also deduct TDS at 10 percent once annual FD interest crosses Rs 40,000, or Rs 50,000 for senior citizens, though that TDS is only an advance against the slab tax shown here. A 5-year tax-saver FD additionally qualifies for an 80C deduction under the old regime but locks the money for the full term.