Calculate your exact maturity amount for a Fixed Deposit with any compounding frequency. Includes effective annual yield and tax insights.
A Fixed Deposit (FD) is the most popular guaranteed-return investment in India. It offers a fixed interest rate for a fixed tenure, with no market risk. Banks, NBFCs, and post offices all offer FDs at varying rates.
FD interest is taxable as "Income from Other Sources" at your slab rate. Banks deduct TDS at 10% if annual interest exceeds ₹40,000 (₹50,000 for senior citizens). If you are in the 30% bracket, you owe the additional 20%. Submit Form 15G/15H to avoid TDS if your total income is below the taxable limit.
Both are taxed at slab rate now (post-Budget 2023 changes to debt MF taxation). FDs have: guaranteed returns, DICGC insurance up to ₹5L, and simplicity. Debt MFs offer: professional management, liquidity, and potentially higher returns. For amounts above ₹5L, debt MFs offer no insurance advantage — evaluate on expected returns.