India · Fixed deposit · 2026

FD calculator India 2026 Post-tax & real return

Post-tax maturity & real yield — adjust slab & inflation below.

Your 7.0% FD rate isn't really 7.0%. After tax and inflation, your real yield is much lower.

Deposit details

₹10K–₹1Cr · DICGC ₹5L per bank
SBI / HDFC ~6.5–7.1% (2026)
Premature closure may cut effective rate

The truth about your return

⚠️ Average
You invest —
You receive —
Real value —
Real gain —

Your 7.0% FD rate isn't what you keep — turn on tax and inflation below.

7.0% Bank rate
Tax
— After tax
Inflation
— Real return

7.0% → — → — p.a.

Real return ≈ after-tax yield − inflation (Fisher)

Bank maturity — What the passbook shows
In today's money —

Turn on inflation to see today's purchasing power.

FY 2025–26 tax rules 6% inflation (editable)

What this means

Adjust for reality Tax · inflation Tax off Inflation off
5%–50% on interest

CPI 0–15%

How your FD grows

Solid line = FD maturity · dashed = real purchasing power

Deposited — Maturity — Interest —

    Hover chart for year-wise breakdown

    Principal vs interest

    What your pre-tax maturity is made of

    From deposit to what you keep

    Deposited → interest → tax → inflation → final

    Compare with SIP → Can your lump sum actually grow? Same deposit · post-tax real return side by side

    Bank FD tools show pre-tax maturity. Your return after income tax on interest and inflation is what actually funds the goal — use the toggles above, then compare with RD or SIP below.

    FD vs RD vs PPF vs SIP — quick comparison

    Fixed deposits excel at capital safety and known horizons — but taxable interest and inflation often erode real returns. Compare post-tax, post-inflation outcomes before locking in.

    Factor FD RD PPF Equity SIP
    Tax on returns Interest taxed at slab Interest taxed at slab EEE — tax-free LTCG/STCG on gains
    Typical rate (2026) 6.5–7.5% p.a. Similar to FD ~7.1% p.a. Market-linked (~10–12% nominal)
    After tax + inflation Often near-zero real Often near-zero real Modest positive real Historically stronger — volatile
    Best for Lump-sum, 1–3 yr goals Monthly discipline 15+ yr tax-free wealth 7+ yr growth goals

    Example: ₹5L at 7% for 5 years → ~₹7.01L pre-tax (~₹2.01L interest). After 30% tax: ~₹6.41L. Real value at 6% inflation: ~₹4.79L in today's rupees.

    Compare side by side: RD calculator · SIP calculator · PPF calculator

    What is a fixed deposit (FD) in India?

    A fixed deposit locks a lump sum for a chosen tenure at a guaranteed rate. Banks, post offices, and NBFCs offer FDs — principal and quoted interest are contractually defined, unlike market-linked products.

    FDs suit emergency buffers, known expenses within 1–3 years, and investors who prioritise capital preservation. They are not ideal for long-term wealth creation once tax and inflation are included.

    FD interest rates in India 2026

    Major banks quote 6.5%–7.5% p.a. for 1–5 year tenures. Senior citizens often receive +0.25–0.50%. Rates change without notice — enter your bank's current offer above.

    • Cumulative FD — interest reinvested; maturity pays principal + compounded interest.
    • Non-cumulative FD — interest paid out monthly/quarterly; lower effective compounding.
    • TDS — deducted when annual interest crosses ₹40K (₹50K for seniors); not final tax.
    • 80TTB — seniors may deduct up to ₹50,000 interest income (verify eligibility).

    How we calculate post-tax real return

    Interest compounds annually. Tax applies to total interest at your marginal slab. Real return uses the Fisher equation:

    Real rate ≈ ((1 + after-tax nominal) ÷ (1 + inflation)) − 1

    Inflation default is 6% p.a. (CPI proxy). Figures apply to cumulative FDs; payout FDs differ. All math runs in your browser — inputs are not sent to our servers.

    Common FD mistakes in India

    • Comparing headline rate to SIP CAGR without tax and risk adjustment.
    • Assuming TDS = final tax — reconcile in your ITR.
    • Ignoring inflation on multi-year FDs meant for "wealth building."
    • Exceeding DICGC limit — ₹5L per depositor per bank without splitting.
    • Breaking FD early without recalculating penalty impact on net yield.

    When an FD makes sense

    • Emergency fund tier-2 (after liquid savings).
    • Expense with a fixed date: fees, wedding, down-payment timeline.
    • Capital must not fluctuate — sleep-at-night money.
    • Horizon under 3 years where equity volatility is inappropriate.

    FAQ

    Fixed deposit (FD) calculator — frequently asked questions

    Is FD interest taxable in India?

    Yes — fully taxable at your income slab as "income from other sources." Unlike PPF or SSY, FD interest has no EEE exemption.

    What is the real return on a 7% FD?

    At 30% tax: ~4.9% after tax. After 6% inflation, real purchasing power may shrink. Toggle Apply tax in the calculator above.

    Does FD beat inflation?

    Rarely over 3+ years once tax is included. FDs preserve capital; they rarely create real wealth in high-inflation periods.

    FD vs RD — which is better?

    Same rate → FD earns slightly more (full principal from day one). RD fits monthly cashflow. Compare in RD calculator.

    What should I compare FD against?

    PPF for tax-free long-term; SIP for 7+ year growth with volatility. Read FD real return guide.

    Is FD risk-free?

    Low credit risk (DICGC ₹5L/bank) but not inflation-protected. "Safe" in nominal rupees ≠ safe in purchasing power.