Tax Saving FD Calculator
Calculate your Section 80C tax deduction and find out the effective yield of your 5-year lock-in Fixed Deposit.
Investment Details
Max Section 80C deduction limit is ₹1,50,000.
(Old Regime Selectors Only)
Immediate Tax Saved (Under 80C)
₹45,000
Maturity Value (After 5 Yrs)
₹2,12,217
Effective True Yield
15.11%
Maturity Breakdown
Frequently Asked Questions
What is a Tax-Saving Fixed Deposit?
A tax-saving FD is a special type of fixed deposit that offers tax deduction under Section 80C of the Income Tax Act. You can claim a deduction up to ₹1.5 Lakh per financial year by investing in this FD.
What is the lock-in period?
Tax-saving FDs have a strict lock-in period of 5 years. You cannot prematurely withdraw the funds, nor can you take a loan or overdraft facility against this FD.
Is the interest earned tax-free?
No. The interest earned on a tax-saving FD is fully taxable as per your applicable income tax slab rate. Only the principal invested is deductible under Section 80C.
What happens if I have chosen the New Tax Regime?
Under the New Tax Regime, Section 80C deductions are not available. Therefore, you cannot claim any tax deduction for investing in a tax-saving FD if you file your taxes under the new regime.
Is TDS deducted on the interest?
Yes, TDS is deducted by the bank @ 10% if the interest earned across all your FDs exceeds ₹40,000 in a year (₹50,000 for senior citizens). If your total income is below the taxable limit, you can submit Form 15G or 15H to avoid TDS.