Tax Saving FD Calculator — Section 80C
Calculate your 5-year tax-saving FD maturity with quarterly compounding, see the post-tax effective return at your slab rate, and compare with ELSS and PPF. Find the best bank rates for tax-saver FDs. All Section 80C instruments give the same deduction — the difference is in returns, tax on returns, and lock-in period.
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How to Use This Calculator
Tax-Saving FD Returns tab
Enter your deposit amount (up to ₹1,50,000 for full 80C benefit), the interest rate offered by your bank (typically 6.5-7.5% p.a.), and your income tax slab. The tenure is fixed at 5 years (mandatory lock-in for tax-saving FDs). The calculator shows maturity amount with quarterly compounding, tax on interest at your slab rate, post-tax effective return, and Section 80C tax saving.
FD vs ELSS vs PPF tab
Enter your investment amount and tax slab. The calculator compares all three popular Section 80C instruments side by side for 5 years: Tax-saving FD at 7% (quarterly compounding, interest fully taxable), ELSS at 12% expected return (3-year lock-in, LTCG 12.5% above ₹1.25L), and PPF at 7.1% (annual compounding, completely tax-free under EEE status). See the post-tax maturity for each to decide which suits your risk profile.
Best Bank Rates tab
Enter your deposit amount and tax slab. The calculator shows a comparison of 5-year tax-saver FD rates across major banks (SBI, HDFC, ICICI, PNB, Axis) for both regular and senior citizen categories. Senior citizens get an additional 0.50% at most banks. See the maturity and post-tax value for each bank to pick the best option.
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The Formula
Tax-saving FDs compound interest quarterly. The maturity amount, tax, and 80C saving are calculated as follows:
A = P × (1 + r/4)4×t
Where:
P = Principal (deposit amount)
r = Annual interest rate (as decimal, e.g. 7% = 0.07)
t = Tenure in years (always 5 for tax-saving FD)
4 = Compounding frequency (quarterly)
Total Interest:
Interest = A − P
Tax on Interest:
Tax = Interest × Slab Rate
Post-Tax Maturity:
Post-Tax Value = A − Tax
Section 80C Tax Saving:
Tax Saved = min(P, ₹1,50,000) × Slab Rate
Example: ₹1,50,000 at 7% for 5 years
A = 1,50,000 × (1 + 0.07/4)20 = ₹2,12,217
Interest = ₹62,217
Tax at 30% = ₹18,665
Post-tax value = ₹1,93,552
80C saving = ₹1,50,000 × 30% = ₹45,000 (+ 4% cess = ₹46,800)
Note: FD interest is taxable on an accrual basis every financial year, not just at maturity. TDS is deducted by the bank if interest exceeds ₹40,000/year (₹50,000 for senior citizens). The effective post-tax return at 30% slab on a 7% FD is approximately 4.9%.
Example
Ravi — IT professional in Pune, investing ₹1.5L in SBI tax-saver FD
Ravi (32) earns ₹12L per year and is in the 30% tax slab under the old regime. He wants to maximise his Section 80C deduction. His EPF contribution already covers ₹72,000 of the ₹1.5L limit. He decides to invest the remaining ₹78,000 in a tax-saving FD at SBI (6.50% p.a.) for the guaranteed return and simplicity. But first, he wants to understand the full picture — returns, tax, and how it compares to PPF and ELSS.
Step 1: Tax-Saving FD calculation (SBI, 6.50%)
Step 2: Results
Step 3: Comparison at a glance
Ravi sees that PPF gives ₹21,424 more than the tax-saving FD over 5 years (both guaranteed), and ELSS could give ₹74,000+ more if markets perform. He decides to split: ₹78,000 in PPF for safety, and sets a reminder to explore ELSS next year as his risk appetite grows.