FD & RD — maturity and the TDS line

Banks compound quarterly; the tax office watches the ₹50,000 line (₹1 lakh for seniors). Both are built in.

Deposit type Amount (₹) — principal, or monthly instalment for RD Interest rate (% p.a.) Tenure (months) Age

The rules this tool applies

Compounding: bank FDs and post-office time deposits compound quarterly; each RD instalment compounds from its own date. Payout FDs pay simple interest.
Interest is taxable at slab in both regimes under "income from other sources" — on accrual each year, not only at maturity.
TDS: 10% when a bank's interest to you exceeds ₹50,000 in a year (₹1 lakh at 60+) — per bank, all branches together; 20% without PAN. Post-office deposits follow the same thresholds.
Form 15G / 15H: if your total income is below the taxable limit you can ask the bank not to deduct — every year, every bank.
Old-regime reliefs: 80TTB (now s.153) — ₹50,000 of deposit interest deductible for 60+ (80TTA ₹10,000 on savings interest for others); 5-year tax-saver FD counts toward 80C (s.123). None of these exist in the new regime.
Post-office rates, Jul–Sep 2026: TD 1/2/3/5-year 6.9 / 7.0 / 7.1 / 7.5%; 5-year RD 6.7%; KVP 7.5% (doubles in 115 months).

Worked example

FD ₹5,00,000 at 7% for 60 months, cumulative: maturity ₹7,07,389, interest ₹2,07,389 — about ₹41,478 a year, under the ₹50,000 line so no TDS at this bank (still taxable). RD ₹5,000 a month at 6.7% for 60 months: ₹3,00,000 deposited → ₹3,56,829.

Edge cases to know

Splitting across banks avoids TDS, not tax — AIS shows every bank's interest to the department.
Premature closure usually costs 0.5–1% on the applicable rate; tax-saver FDs cannot be broken for 5 years.
Joint accounts: TDS and tax go to the first holder unless the money is provably the second's.
NRO deposits face 30% TDS with no threshold — a different regime from this tool.

Related tools

NSC calculator — the 5-year post-office alternative at 7.7%.
SCSS calculator — 8.2% for seniors.
Income tax calculator.

Last verified: 18 September 2026 — TDS thresholds ₹50,000 / ₹1 lakh per Finance Act 2025 (carried into s.393 of the Income-tax Act 2025); 80TTA/80TTB → s.153. Rates: Ministry of Finance notification of 30 June 2026 for July–September 2026 (ninth unchanged quarter); re-checked quarterly. · Not tax advice.