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Tax Saver FD Calculator

Tax-saving fixed deposit over its five year lock-in. The 80C deduction is worth more than the interest rate: the interest is fully taxable while the deduction is immediate.

Also called: 5 year tax saving fd, 80c fixed deposit.

₹
%
Interest
%
Maturity value
₹2,12,217

₹2,12,217 after the five year lock-in, from 1,50,000. Interest of ₹62,217 is fully taxable, leaving ₹43,552 after tax at 30%. The deduction under 80C saves ₹45,000 today.

Interest earned
₹62,217
Interest after tax
₹43,552
Tax saved by the 80C deduction
₹45,000
Post-tax annual return
5.23%
Total benefit including the deduction
₹88,552
On the lock-in
The five year lock-in cannot be broken, unlike an ordinary fixed deposit.
How this is calculated
Method and background

This is what the calculation gives for the numbers you entered. It is an estimate, not advice, and it knows nothing about your situation beyond those numbers. Rules for India change on a published schedule; the effective date is shown on every rule-based tool.

How this is calculated

A tax-saving FD locks money for five years and qualifies for deduction under section 80C up to the annual limit. The arithmetic worth understanding is that the deduction is the main benefit. Interest is taxed at your slab every year on an accrual basis, so at a thirty percent slab a seven percent FD returns under five percent after tax. The upfront deduction, worth thirty percent of the amount invested, dwarfs that. Premature withdrawal is not permitted at all, unlike an ordinary FD.

quarterly compounding over the five year lock-in
P
Principal
r
Annual rate

Worked examples

Each of these is asserted on every build. If a change to the engine ever moved one of these answers, the build would fail before the page could print it.

the full 80C limit

Amount invested
₹1,50,000
Interest rate
7%
Interest
Reinvested
Your tax slab
30%

Maturity value₹2,12,217

30% of 1,50,000

Open this example

a nil slab pays no tax on interest

Amount invested
₹1,50,000
Interest rate
7%
Interest
Reinvested
Your tax slab
0%

Maturity value₹2,12,217

boundary

Open this example

Method and limits

What it assumes

  • Quarterly compounding, which is the usual bank convention.

What it deliberately does not model

  • The 80C deduction is available only under the old tax regime.
  • TDS applies above the annual threshold and is creditable against your liability.

Formula version 1.0.0 · definition 1.0.0 · India · Report a problem with this calculator

Frequently asked questions

Can I break a tax-saving FD early?
No. The five year lock-in is absolute, unlike an ordinary FD where premature withdrawal is allowed with a penalty.
Is the interest tax free?
No. Only the amount invested gets a deduction. The interest is taxed at your slab each year as it accrues.