FD Calculator — Calculations & Slabs for FY 2026-27

Fixed deposit interest is computed using quarterly compounding. The annual rate of return is divided by 4 to get the quarterly rate, which is applied to your balance 4 times a year, adding the accumulated interest back to your principal amount each quarter.

In a cumulative FD, the interest earned compounds quarterly and is paid out along with the principal at maturity. In a non-cumulative FD, interest is not compounded but paid out regularly (monthly, quarterly, or semi-annually) to provide a steady income.

Yes, interest earned on fixed deposits is fully taxable according to your income tax slab. If your annual FD interest exceeds ₹50,000 (₹1,00,000 for senior citizens), the bank will deduct Tax Deducted at Source (TDS) at 10% (or 20% if you do not provide your PAN).

Yes, most banks allow premature withdrawal of fixed deposits. However, they usually charge a penalty of 0.5% to 1.0% on the interest rate applicable for the actual period the deposit remained with the bank. This ensures full compliance with the latest regulations, allowing you to estimate values correctly and avoid common filing errors.

You can verify the values against the official notifications listed in our data sources section at the bottom of the page.