FD Calculator

Interest compounds at your chosen frequency (monthly, quarterly, half-yearly, or annually) for every complete period, then any leftover partial period earns simple interest on the compounded balance so far — this matches how Indian banks settle a tenure that doesn't divide evenly into whole compounding periods. A non-cumulative FD instead pays out that period's interest rather than reinvesting it, so the principal never grows.

A cumulative FD reinvests your interest every period, so it compounds and you receive one lump sum (principal + all accumulated interest) at maturity. A non-cumulative FD pays out interest on a schedule instead — monthly, quarterly, and so on — so you get regular income, but the principal doesn't grow and your total interest is lower than an equivalent cumulative FD over the same tenure.

Most Indian banks add a standard bonus — commonly 0.50% p.a. — to their regular FD rate for senior citizens (60+). This is a typical, commonly published figure used as this calculator's default assumption, not a universal rule — some banks offer more, especially for longer tenures, so confirm your specific bank's senior citizen rate before relying on it.

Yes — FD interest is fully taxable as "income from other sources" at your slab rate, regardless of cumulative or non-cumulative payout. Banks deduct TDS at 10% if your total interest from that bank exceeds ₹40,000 in a year (₹50,000 for senior citizens); if it's below that, you still owe tax on it yourself even though no TDS was deducted.

Most banks apply a premature-withdrawal penalty — typically 0.50%–1% shaved off the interest rate that actually applies for the period you held the deposit, not the rate you were originally promised. The exact penalty and any lock-in period vary by bank and by scheme, so check your specific FD's terms before assuming you can exit without a cost.