FD & RD Calculator

Yes, FD interest is fully taxable as 'Income from Other Sources' under the Income Tax Act, 2025. Banks deduct TDS under Section 393 at 10% if interest exceeds ₹40,000 per bank per year (₹50,000 for seniors). Submit Form 15G/15H to avoid TDS if your total income is below taxable limit.

Most banks charge a penalty of 0.5% to 1% lower interest rate on premature withdrawal. For example, if your FD was at 7% and you break it early, you might get only 6-6.5% interest. Some banks offer sweep-in FD facility to minimize this penalty.

Choose FD if you have a lumpsum amount to invest and want guaranteed returns. Choose RD if you want to build savings through regular monthly deposits. FDs offer slightly higher rates. For tax-saving, consider Tax-saving FD (5-year lock-in) under Section 80C of the Income Tax Act, 2025.

Cumulative FD pays interest at maturity along with principal, offering higher effective returns due to compounding. Non-cumulative FD pays interest monthly, quarterly, or annually, suitable for those needing regular income. Cumulative FD gives better overall returns.

Yes, banks offer loans against FD up to 90-95% of the FD amount at 1-2% higher interest rate than the FD rate. This is better than premature withdrawal as you avoid penalty and your FD continues earning interest.

For FY 2026-27, key small savings rates include: NSC at 7.7% per annum, KVP (Kisan Vikas Patra) at 7.5% per annum (doubles in ~10 years), and Senior Citizens Savings Scheme (SCSS) at 8.2% per annum. These are reviewed quarterly by the government.