Reviewed by Finin2min Editorial Desk · Last reviewed 11 August 2026
Estimate fixed-deposit or recurring-deposit maturity, gross interest and an indicative post-tax value.
Calculate FD or RD maturity
Maturity estimate
Gross maturity
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Estimated post-tax maturity
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Component
Amount
Total deposits
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Gross interest
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Estimated tax on interest
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How This Is Calculated
A Fixed Deposit (FD) is a one-time lump-sum deposit that earns compound interest over a fixed tenure. A Recurring Deposit (RD) instead involves a fixed monthly instalment over the tenure, with each instalment earning interest for the remaining period. Interest on both is fully taxable as "Income from Other Sources", and banks deduct TDS under Section 194A if annual interest exceeds ₹50,000 (₹1,00,000 for senior citizens).
Frequently Asked Questions
Is FD/RD interest taxable?
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Yes. Interest earned on both Fixed Deposits and Recurring Deposits is fully taxable under "Income from Other Sources", added to your total income and taxed at your applicable slab rate — it is not a flat-rate or exempt form of income.
When does a bank deduct TDS on FD/RD interest?
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Banks deduct TDS under Section 194A when total interest from all deposits with that bank exceeds ₹50,000 in a financial year (₹1,00,000 for senior citizens). TDS is deducted at 10% if PAN is provided, or a higher rate if not. You can submit Form 15G/15H to avoid TDS if your total income is below the taxable threshold.
What is the difference between FD and RD?
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A Fixed Deposit is a single lump-sum deposit that earns interest for the full tenure from day one. A Recurring Deposit involves a fixed amount deposited every month, where each instalment earns interest only from the date it is deposited, so RD returns are structured differently even at the same interest rate.
Does TDS being deducted mean no further tax is owed?
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No. TDS deducted by the bank is only a prepayment of tax, not the final tax liability. If your slab rate is higher than the TDS rate, you owe the difference when filing your ITR; if it's lower, or your total income is below the taxable threshold, you can claim a refund.
Scope: Computes the maturity value of a Fixed Deposit (compound interest, lump sum) and a Recurring Deposit (compound interest, monthly instalments), using the standard formulas used by Indian banks.
Calculation logic
FD maturity value = P × (1 + r/n)(n × t), where P is the principal, r is the annual interest rate, n is the compounding frequency per year (typically quarterly for Indian bank FDs), and t is the tenure in years.
RD maturity value = Σ over each monthly instalment of [Instalment × (1 + r/n)(remaining compounding periods for that instalment)], summing the compounded value of each monthly deposit from its deposit date to maturity — equivalent to the standard RD maturity formula banks use.
TDS on FD/RD interest is estimated at the applicable rate where interest exceeds the prescribed threshold, if the user opts to see the post-TDS figure.
Inputs and assumptions
Assumes quarterly compounding for FD (the most common convention among Indian banks) unless the user selects a different compounding frequency to match their specific bank's terms.
Interest rates entered are assumed fixed for the full tenure, consistent with how FD/RD products are actually structured (rate locked at booking).
Exclusions and edge cases
Does not model premature withdrawal penalty (reduced interest rate applied by the bank on early closure) unless the user re-runs the calculation with the penalty-adjusted rate and actual tenure held.
Senior-citizen additional interest rate is only reflected if the user enters the senior-citizen rate directly.
Sources
No specific external regulatory source applies beyond general market-linked instrument mechanics.
Review status: reviewed and approved by CA Nikhil Gupta on 14 July 2026.
Guides on this topic
Background, worked examples and the rules behind these numbers.
Finin2min is not registered with the Securities and Exchange Board of India (SEBI) as an Investment Adviser or as a Research Analyst. This tool performs an arithmetic calculation on the figures you enter and is published for general information and educational purposes only. It is not investment advice, it is not personalised to your financial circumstances, objectives or risk tolerance, and it is not a recommendation to buy, sell or hold any security, scheme or product. Projected values are illustrative and follow directly from the assumptions you supply; actual returns will differ, and past performance does not indicate future results. Consider consulting a SEBI-registered Investment Adviser before acting on any investment decision.