About the Tax Saving FD Calculator
What is the Tax Saving FD Calculator?
A tax-saver fixed deposit is a bank FD with a compulsory 5-year lock-in. Deposits of up to ₹1.5 lakh a year qualify for the Section 80C deduction under the old tax regime, making it a simple, guaranteed way to save tax.
Enter the deposit, the rate and the tenure (5 years) with quarterly compounding. The calculator shows the maturity value and interest. Remember that the interest itself is taxable every year.
How to use the Tax Saving FD Calculator
- Deposit Amount (₹) (sample: 5,00,000)
- Interest Rate (% per year) (sample: 7.2)
- Tenure (Years) (sample: 5)
- Compounding (sample: Quarterly)
- Press Calculate FD (results also refresh as you type). The result card shows the Maturity Value, along with Deposit Amount, Interest Earned and Total Return on Deposit.
Formula used
Maturity = P × (1 + r ÷ 4)^(4 × 5)
- P = the deposit (up to ₹1.5 lakh for the 80C deduction)
- r = the annual interest rate
No premature withdrawal or loan against the deposit is allowed during the 5-year lock-in.
Worked example
These are the sample values already filled in the calculator above, and the result it returns for them:
| Input | Sample value |
|---|---|
| Deposit Amount (₹) | 5,00,000 |
| Interest Rate (% per year) | 7.2 |
| Tenure (Years) | 5 |
| Compounding | Quarterly |
| Result | Value |
|---|---|
| Maturity Value | ₹7,14,374 |
| Deposit Amount | ₹5,00,000 |
| Interest Earned | ₹2,14,374 |
| Total Return on Deposit | 42.87% |
Tips for using the Tax Saving FD Calculator
- Post office 5-year time deposits also qualify for 80C.
- Compare the post-tax return with PPF and ELSS before choosing.
- Only the first holder of a joint tax-saver FD can claim the deduction.