Fixed deposit
One deposit, interest added four times a year. The effective annual rate is printed beside the maturity. A deposit quoted at one rate accumulates at a slightly higher one, and comparing quoted rates alone hides that.
FD, RD & PPF calculator
FD, RD and PPF side by side, with the interest each one earns.
The link carries only these inputs. Saved inputs stay in this browser only, and are off until you turn them on.
Fixed deposit
₹5,00,000.00 at 7% for 60 months matures at ₹7,07,389.10. Of that, ₹2,07,389.10 is interest.
Maturity value₹7,07,389.10the headline figure
Effective annual rate7.186%7% compounded quarterly
Interest earned₹2,07,389.10
You deposited₹5,00,000.00
A fixed deposit, after everything
- You deposit₹5,00,000.00
- Interest it earns₹2,07,389.10
- Headline maturity value · the figure the bank quotes₹7,07,389.10
- Tax at 31.20% · your slab plus the cess₹64,705.40
- After tax · rupees at maturity₹6,42,683.70
- What it buys, in today's money · after tax and the inflation you entered — 0.14% a year₹5,03,559.50
5.15% a year after tax and before inflation. 0.14% a year after both. Interest is added at the end of each quarter. This makes the effective rate higher than the quoted rate. Interest is taxed at your chosen slab and cess. The last row uses your inflation input. These are calculations, not forecasts.
What the headline is worth after everything
- Left, in today's money₹5,03,559.50
- Taken by the price level₹1,39,124.20
- Tax at the slab you entered₹64,705.40
The three parts add up to the ₹7,07,389.10 headline. At the slab and inflation figures you entered, ₹5,03,559.50 of it is what the money buys in today's prices.
Quarter-by-quarter schedule (20 rows)
| Period | Opening | Interest | Closing |
|---|---|---|---|
| Quarter 1 | ₹5,00,000.00 | ₹8,750.00 | ₹5,08,750.00 |
| Quarter 2 | ₹5,08,750.00 | ₹8,903.13 | ₹5,17,653.13 |
| Quarter 3 | ₹5,17,653.13 | ₹9,058.93 | ₹5,26,712.05 |
| Quarter 4 | ₹5,26,712.05 | ₹9,217.46 | ₹5,35,929.52 |
| Quarter 5 | ₹5,35,929.52 | ₹9,378.77 | ₹5,45,308.28 |
| Quarter 6 | ₹5,45,308.28 | ₹9,542.89 | ₹5,54,851.18 |
| Quarter 7 | ₹5,54,851.18 | ₹9,709.90 | ₹5,64,561.07 |
| Quarter 8 | ₹5,64,561.07 | ₹9,879.82 | ₹5,74,440.89 |
| Quarter 9 | ₹5,74,440.89 | ₹10,052.72 | ₹5,84,493.61 |
| Quarter 10 | ₹5,84,493.61 | ₹10,228.64 | ₹5,94,722.25 |
| Quarter 11 | ₹5,94,722.25 | ₹10,407.64 | ₹6,05,129.88 |
| Quarter 12 | ₹6,05,129.88 | ₹10,589.77 | ₹6,15,719.66 |
| Quarter 13 | ₹6,15,719.66 | ₹10,775.09 | ₹6,26,494.75 |
| Quarter 14 | ₹6,26,494.75 | ₹10,963.66 | ₹6,37,458.41 |
| Quarter 15 | ₹6,37,458.41 | ₹11,155.52 | ₹6,48,613.93 |
| Quarter 16 | ₹6,48,613.93 | ₹11,350.74 | ₹6,59,964.68 |
| Quarter 17 | ₹6,59,964.68 | ₹11,549.38 | ₹6,71,514.06 |
| Quarter 18 | ₹6,71,514.06 | ₹11,751.50 | ₹6,83,265.55 |
| Quarter 19 | ₹6,83,265.55 | ₹11,957.15 | ₹6,95,222.70 |
| Quarter 20 | ₹6,95,222.70 | ₹12,166.40 | ₹7,07,389.10 |
FD interest is added to income and taxed at your slab. Tax deducted at source by the bank is a withholding against that liability, not an extra charge, so it is not added here.
The rupee figures assume the tax on the whole interest is settled out of the proceeds. In practice interest is usually offered to tax each year as it accrues. The total tax is the same, so only the annualised percentage moves, and only slightly.
Each file lists the source and the check date for every rate. The CSV comes as two files, the figures and their sources.
PPF default 7.1% was notified for 1 October 2026 to 31 December 2026 and checked on 5 October 2026. Small-savings rates are revised quarterly, so confirm the running quarter and type the rate in.
These three deposits compound differently, so the same rate does not produce the same maturity value. A fixed deposit compounds quarterly. A recurring deposit compounds quarterly on each instalment separately. PPF compounds once a year. Enter your own amount, rate and term. This applies each convention, then takes tax at your slab and the inflation you assume off the result.
The government revises PPF and other small-savings rates every quarter. The pre-filled rate is 7.1% a year. It was notified for 1 October 2026 to 31 December 2026. It was last checked on 5 October 2026. For a later quarter, enter its notified rate from nsiindia.gov.in. Banks set their own FD and RD rates. Enter your bank's rate for those deposits.
What this calculator does and does not do
What this calculator does
- Works each of the three deposits with its own compounding convention rather than pushing all three through one formula.
- Applies the PPF rule that a deposit made after the fifth of a month earns nothing for that month.
- Shows what tax leaves behind, on the products where tax applies.
What it does not do
- Quote anybody's rate. The fixed and recurring deposit rates are the ones you enter.
- Model premature withdrawal, a loan against the deposit, or a rate revision part-way through the term.
- Cover who is eligible to open any of the three, or the limits on how many you may hold.
Show the method and assumptions
The method
- FD: interest compounds every quarter on the amount deposited.
- RD: each monthly instalment compounds every quarter for as long as it stays in.
- PPF: interest is added once a year, on each month's lowest balance after the 5th.
- Tax on FD and RD interest uses your slab rate. PPF interest is tax-free.
What it assumes
- The rate you type holds for the whole term.
- Today's money uses the inflation rate you type.
Sources, effective dates and exclusions
- Calculated on
- today
The PPF rate starts at the latest notified rate. You can change every rate in the form.
Small-savings rates and limits
- Rules in force from
- 1 Oct 2026
- Source published
- not listed
- Last reviewed
- 5 Oct 2026
Not included
- Live market prices. Every price here is one you type.
- TDS the bank deducts.
- Penalties for closing a deposit early.
What could change this?
- The rate you enter. Nothing here quotes a bank. The PPF default is a dated notification and must be re-checked each quarter.
- The compounding convention. FD and RD compound quarterly on each amount separately. PPF credits once a year on the lowest balance after the fifth of the month.
- The deposit day for PPF. Money reaching the account by the fifth earns that month's interest. Money reaching it later does not.
- Your slab and the inflation you assume. FD and RD interest is taxed at your slab plus cess. PPF is exempt. Inflation restates the result in today's money.
Products3each with its own compounding convention
Cess on the tax4%health and education cess, added to your slab
Formula setv1.0.0every rate sourced and dated
Why the same rate means three different things
A deposit quoted at 7% a year does not pay 7% a year. Two things change the answer more than the headline rate does. One is how often the interest is added. The other is whether the interest is taxed. A fixed deposit adds interest four times a year. A recurring deposit does the same, but each instalment starts on a different date, so no two instalments earn for the same length of time. PPF adds interest once a year. It pays only on the balance that was already sitting in the account at the close of the 5th of each month.
Tax then splits them apart again. Interest on a fixed or recurring deposit is added to your income and charged at your slab. A 4% health and education cess applies on that tax. PPF is exempt at all three stages: on the way in, while it grows, and on the way out. Two accounts paying the same rate can hand back very different amounts. That is what the comparison tab is for.
What actually differs
Compounds quarterly
Recurring deposit
Twelve deposits a year, each compounding quarterly for its own remaining term. The first instalment earns for the whole tenure, and the last for a single month. The maturity is therefore a sum of differently aged deposits, not one annuity.
PPF
Interest accrues monthly on the lowest balance between the close of the 5th and month end. It is then credited at the end of the year. Nothing compounds inside a year. Money arriving after the 5th sits out that month entirely.
Tax
FD and RD interest is added to income and charged at your slab. A 4% health and education cess applies on the tax. PPF is exempt at all three stages. Two products at the same headline rate are therefore not the same product.
Inflation
A future rupee is restated in today's prices by dividing by compounded inflation at the rate you enter. It is a figure you choose, not one this page publishes, and nothing here forecasts it.
Every rate is sourced
Rates that move are inputs with documented defaults. Each is listed with its source and the date it was checked. Small-savings rates are notified quarterly, so the default states the quarter it belongs to rather than presenting itself as permanent.
Worked example: a fixed deposit
₹1,00,000 placed for five years at 7% a year, compounded quarterly. The rate per quarter is 7% ÷ 4 = 1.75%, and there are twenty quarters:
M = 100000 × (1 + 0.07/4)^20 = 141477.82The effective annual rate is (1 + 0.07/4)4 − 1 = 7.186%. That is the number to hold against an annually compounded product. Comparing 7% with 7% would quietly understate this deposit.
Interest earned is ₹41,477.82. At a 30% slab plus the 4% cess — 31.2% on the interest — the tax is ₹12,941.08, leaving ₹1,28,536.74. Restated in today's prices at 5% inflation, that is ₹1,00,711.90 — an annualised 0.14% after everything, against a headline that looked like 7.186%.
Worked example: a recurring deposit, and the formula that gets it wrong
₹5,000 a month for sixty months at 7% a year. Each instalment compounds quarterly for its own remaining term, so instalment number k is on deposit for 61 − k months and the sum is taken one instalment at a time:
M = Σ 5000 × (1 + 0.07/4)^(months remaining ÷ 3) = 359663.95The monthly-compounding annuity formula published in most places returns ₹3,60,052.63 on the same inputs — ₹388.68 more. It compounds twelve times a year on a product that compounds four, and the gap widens with the term. Both figures appear in the tool above, so you can check the size of the difference rather than take either on trust.
You pay in ₹3,00,000.00 and the interest is ₹59,663.95. After 31.2% tax that is ₹3,41,048.80, and in today's money at 5% inflation, ₹2,67,220.66.
Worked example: PPF, and the day of the month that costs money
₹12,500 a month for fifteen years at 7.1% a year, reaching the account on the 10th. Because the 10th is after the 5th, each month's deposit was not in the account at the close of the 5th, so under paragraph 7(1) of the Public Provident Fund Scheme, 2019 it earns nothing for its own month:
Same money, reaching the account by the 5th₹39,44,599.22
Reaching it on the 10th₹39,22,124.68
Cost of the date alone₹22,474.54
Nothing else differs: same instalments, same rate, same fifteen years. In the first year alone the account credits ₹4,881.25 instead of the amount it would have. Every month missed is also missing from every later year's compounding. That is why the gap ends up far larger than fifteen single months of interest.
PPF is exempt at all three stages, so the ₹16,72,124.68 of interest is not taxed and the after-tax figure is the balance itself. Inflation still applies: at 5% the ₹39,22,124.68 is worth ₹18,86,609.03 in today's prices.
The comparison, and what it is not
The last tab puts the same monthly rupee into all three over one horizon. The fixed-deposit column is a monthly ladder. Each month's money goes into its own deposit, running to the same end date. That makes an honest point visible: at the same rate, that ladder and a recurring deposit are the identical sum. What separates them in practice is the rate each is quoted at, so each gets its own rate box.
The PPF column takes the scheme ceiling of ₹1,50,000 in a financial year. Above that the account does not accept the money, so the row says how much did not fit rather than quietly investing it.
What is not modelled
Premature withdrawal penalties, PPF loans and partial withdrawals, the deduction on the contribution under s.80C (1961 Act), now s.123 (2025 Act), surcharge on high incomes, and any bank-specific rounding are all outside this tool. Tax deducted at source is not added either. It is the bank withholding tax you already owe on the interest, not a separate charge. Counting it would deduct the same money twice.
A tenure that is not a whole number of quarters is handled by a convention this page states. Compound the complete quarters, then apply simple interest on the leftover months. Banks differ on that, so reconcile against the figure your own bank quotes.
Every rate and limit used, with its source
| Figure | Value | Kind | How often it changes | Source | Checked |
|---|---|---|---|---|---|
| PPF interest rate (default) | 7.1% a year | Notified rate | Notified every quarter by the Ministry of Finance (Budget Division). | Ministry of Finance (Budget Division) Office Memorandum F.No.1/4/2019-NS of 30 September 2026: rates for 1 October – 31 December 2026 left unchanged from the July – September quarter, PPF 7.1% per annum. Confirm the running quarter at nsiindia.gov.in before relying on it. | 5 October 2026 |
| PPF minimum deposit in a year | ₹500 | Scheme rule | Fixed by the scheme notification. It changes only by amendment. | Public Provident Fund Scheme, 2019, paragraph 4(1) — G.S.R. 915(E) dated 12 December 2019. | 5 October 2026 |
| PPF maximum deposit in a year | ₹1,50,000 | Scheme rule | Fixed by the scheme notification. It changes only by amendment. | Public Provident Fund Scheme, 2019, paragraph 4(1) — G.S.R. 915(E) dated 12 December 2019. | 5 October 2026 |
| PPF deposit multiple | ₹50 | Scheme rule | Fixed by the scheme notification. It changes only by amendment. | Public Provident Fund Scheme, 2019, paragraph 4(1) — deposits are made in multiples of fifty rupees. | 5 October 2026 |
| PPF minimum-balance day | day 5 | Scheme rule | Fixed by the scheme notification. It changes only by amendment. | Public Provident Fund Scheme, 2019, paragraph 7(1A) (inserted by G.S.R. 290(E), 5 May 2020, for deposits from 1 April 2020) — interest is eligible for a calendar month on the lowest balance at the credit of an account between the close of the fifth day and the end of the month. Paragraph 7(2) credits interest at the end of each year. | 5 October 2026 |
| PPF term | 15 years | Scheme rule | Fixed by the scheme notification. It changes only by amendment. | Public Provident Fund Scheme, 2019, paragraph 11(1) — closure any time after fifteen years from the end of the year in which the account was opened. | 5 October 2026 |
| PPF extension block | 5 years | Scheme rule | Fixed by the scheme notification. It changes only by amendment. | Public Provident Fund Scheme, 2019, paragraph 12 — the account may be extended for a further block period of five years, in successive blocks. | 5 October 2026 |
| Health and education cess | 4% | Notified rate | Set by the annual Finance Act. Check it each Budget. | Health and education cess of 4% on income-tax plus surcharge (Finance Act, and the incometax.gov.in tax-rate tables), re-checked for AY 2026-27. | 5 October 2026 |
| FD / RD compounding frequency | 4 | Stated convention | A market convention, not a statutory rate. Individual banks may differ. | Quarterly compounding is the usual Indian bank practice on cumulative term deposits. This calculator states the convention rather than assuming your bank's. Check it against the maturity figure your bank quotes. | 4 September 2026 |
| Inflation assumption (default) | 5% a year | Your assumption | Your own assumption. Change it — nothing published fixes this number. | Not a published or forecast figure. It is a starting value for the reader to replace, used only to restate a future rupee amount in today's money. | 4 September 2026 |
Related tools
For the charges on a market trade rather than a deposit, see the trade cost and breakeven calculator. For sizing a position from your own capital, the position size calculator works the same way, from your own figures. The full list is on the tools index.
Rates, rules & provenance. PPF rate. The default of 7.1% a year is the figure notified for the quarter 1 October 2026 to 31 December 2026, when the Ministry of Finance left small-savings rates unchanged. It was checked on 5 October 2026 against the National Savings Institute (nsiindia.gov.in). Small-savings rates are notified every quarter, so this is a documented default for an input, not a permanent figure — confirm the running quarter before relying on it. PPF scheme rules. The ₹1,50,000 annual ceiling and the ₹500 minimum come from paragraph 4(1) of the Public Provident Fund Scheme, 2019 (G.S.R. 915(E) dated 12 December 2019). The lowest-balance rule and the year-end credit come from paragraph 7(1) and 7(2). The fifteen-year term comes from paragraph 11(1), and extension in five-year blocks from paragraph 12. Tax. Interest on a fixed or recurring deposit is chargeable at your slab as income from other sources, with a 4% health and education cess on the tax, per the income-tax rate tables for assessment year 2026-27. PPF is exempt at all three stages. Surcharge is not modelled because it turns on total income, which this page does not ask for. Compounding. Quarterly compounding on bank deposits is the usual market practice, stated here as this calculator's convention rather than as a published rule. Individual banks may compute differently, so check against your bank's own figure. Inflation. The default is a starting assumption you can replace. It does not predict an investment outcome.
Common mistakes
- Reading the compare table as a ranking. It is arithmetic at the rates you entered. The three products differ in lock-in, tax treatment and who guarantees them, none of which is in the table.
- Applying monthly compounding to a recurring deposit. Bank RDs compound quarterly on each instalment's own tenure. The monthly shortcut overstates the maturity, and the calculator shows by how much.
- Assuming a PPF deposit earns from the day it lands. Interest for a month is on the lowest balance between the fifth and the last day. A deposit after the fifth earns from the following month.
FD, RD and PPF FAQ
How is FD interest compounded in India?
Quarterly, on a cumulative deposit. That is the usual bank practice rather than a statutory rule, which is why this calculator states the convention it uses instead of assuming your bank's. Because of it, a deposit quoted at 7% a year actually accumulates at 7.186% a year. That figure is the effective annual rate. It is printed beside every result. That way a quarterly FD can be held next to an annually compounded product honestly.
Why is my RD maturity lower here than on some other calculators?
Because an RD compounds four times a year, not twelve. The formula published in most places is the monthly-compounding annuity formula. That one compounds twelve times a year at the same quoted rate, so it returns a larger number. This tool instead compounds each instalment quarterly for its own remaining term. It prints both figures side by side, so you can see the size of the gap rather than take it on trust.
What is the 5th of the month rule in PPF?
Paragraph 7(1) of the Public Provident Fund Scheme, 2019 sets the rule. A month's interest is eligible on the lowest balance at the credit of the account between the close of the fifth day and the end of that month. Money that lands on the 6th or later is in the account at month end. It was not there at the close of the 5th, though, so it earns nothing for that month. Paragraph 7(2) then credits the year's accrued interest at the end of the year. The calculator runs the same money on your chosen date and on the 5th, and prints the difference.
Is PPF interest taxable?
PPF is exempt at all three stages. The contribution attracts a deduction under s.80C (1961 Act), now s.123 (2025 Act) for a taxpayer under the old regime. The interest is exempt, and the maturity amount is exempt. FD and RD interest is not. It is added to income and charged at your slab rate. That is why a 7% FD and a 7% PPF are not the same product. It is also why the comparison on this page ends on the post-tax figure rather than the headline.
How often does the PPF interest rate change?
The Ministry of Finance notifies small-savings rates, including PPF, every quarter. You can change the rate entered. Its default names the notified quarter and the date checked. Confirm the current rate at nsiindia.gov.in if that quarter has passed, then enter it.
Does the calculator account for TDS on FD interest?
No, and deliberately. Tax deducted at source is the bank withholding part of the tax you already owe on that interest. It is a payment on account, not an extra charge. Counting it separately would deduct the same money twice. The post-tax figure here applies your marginal slab to the whole interest, plus the 4% health and education cess. Surcharge is not modelled. It depends on total income, which this page never asks for.
Why does the maturity figure fall so much after inflation?
Because a rupee received in fifteen years does not buy what a rupee buys now. The tool divides the post-tax amount by compounded inflation at the rate you enter. That restates it in today's prices. The inflation figure is your own assumption, and nothing on this page forecasts it. Change it and the arithmetic changes with it.
Where to go from here
Learn the ideaDiversification and Inflation: Two Things a Return Figure Hides
Its second half is the arithmetic behind the last figure on this page. Inflation is divided out, not subtracted: 8% growth against 6% inflation leaves about 1.89% rather than 2%, and the gap between the two methods widens as both rates rise.
Read the lesson Then thisMarket X-Ray for market mechanicsWhere the figures stop being fixed: change spot, time, volatility or open interest on a synthetic example and watch a model respond — option premiums, open interest, liquidity and expiry.
OpenLast checked on 5 October 2026.