Do senior citizens get higher FD interest rates?

Yes, Indian banks typically offer senior citizens (age 60 and above) an extra 0.50% to 0.75% interest over standard card rates.

What is a 5-year Tax Saving FD?

Under Section 80C, investments up to ₹1.5 lakh in designated 5-year tax-saving FDs are tax-deductible. These have a mandatory 5-year lock-in period.

Finance

Fixed Deposit (FD) Calculator

Calculate maturity value and interest earnings on bank Fixed Deposits with quarterly compounding and senior citizen rates.

Deposit Amount (Principal ₹)

₹

Interest Rate (% p.a.)Standard bank rate

Tenure (Years)

Senior Citizen (Adds +0.50% interest rate premium standard across Indian banks)

Maturity Amount

₹1,23,508

Quarterly compounding applied

Total Interest Earned

₹23,508

Over 3 years

Effective Annual Yield

7.84%

Compound annualized return

Bank Fixed Deposit (FD) Quarterly Compounding Formula

Computes maturity amount and total interest earned on fixed deposit accounts using quarterly compounding standard across commercial and public sector banks in India.

A = P * (1 + r / 400)^(4 * t) (where P = Principal, r = Annual Interest Rate %, t = Tenure in Years)

Calculation Steps

1Enter principal deposit amount and annual interest rate (e.g. 7.25% p.a.).
2Enter tenure in years, months, or days.
3Compound interest 4 times per year (quarterly compounding).
4Compute Maturity Amount A and Total Interest = A - P.

Practical Example

Scenario: Fixed deposit of ₹1,00,000 for 3 years at 7.00% interest

Inputs: Principal: ₹1,00,000 | Rate: 7.00% p.a. | Tenure: 3 Years

Calculation: A = 100000 * (1 + 7/400)^(4 * 3) = 100000 * (1.0175)^12 = ₹1,23,144

Result: Maturity Amount: ₹1,23,144 | Interest Earned: ₹23,144

Assumptions & Disclaimers

Key Assumptions:

Indian banks compound FD interest quarterly as per Reserve Bank of India (RBI) guidelines.
Senior citizens typically receive an additional 0.50% interest.

FD interest earned is taxable under "Income from Other Sources". Banks deduct TDS under Section 194A if annual interest exceeds ₹40,000 (₹50,000 for senior citizens).