Same interest
Under 6 months banks pay simple interest, so reinvesting earns no more than payouts.
FD calculator
₹5,00,000 for 156 days at 4.9% a year grows to ₹5,10,471. The interest is ₹10,471, before tax.
- Verified 29 September 2026
- Same method as banks
- By the Accurio.in team
Maturity amount
₹5.1 lakh
After 156 days at 4.9% a year, simple interest
- Deposit
- ₹5,00,000
- Interest
- ₹10,471
Value after 156 days₹5,10,471
Your bank’s figure can differ slightly. Why?
Try a what-if
Simple interest
Under 6 months banks pay simple interest: 4.9% × days ÷ 365, at maturity.
₹534 more
for each 0.25% of extra rate on this deposit over 156 days. Rates for the same tenure differ from bank to bank.
See how it grows
Your depositInterestDrag across the chart
| Year | Interest | Value |
|---|---|---|
| To maturity | ₹10,471 | ₹5,10,471 |
Rates for the same tenure differ between banks. The same deposit at other rates:
| Rate | Maturity amount | Interest in all |
|---|---|---|
| 3.9% a year | ₹5,08,334 | ₹8,334 |
| 4.4% a year | ₹5,09,403 | ₹9,403 |
| 4.9% a year | ₹5,10,471 | ₹10,471 |
| 5.4% a year | ₹5,11,540 | ₹11,540 |
| 5.9% a year | ₹5,12,608 | ₹12,608 |
How this is calculated
The formula
Maturity = P × (1 + R/400)q × (1 + R/100 × d/365)
- P = deposit, R = interest rate % a year, q = number of whole quarters, d = days after the last whole quarter.
- Interest is added to the deposit every whole quarter; the days after the last one earn simple interest on the grown amount.
- Deposits under 6 months earn simple interest: P × R/100 × days/365, paid at maturity.
- Quarterly payout: P × R/400 every quarter. Monthly payout: the quarterly amount ÷ ((1 + R/1200)2 + (1 + R/1200) + 1), so three monthly payouts reinvested at the same rate equal one quarterly payout. Days after the last payout earn simple interest, paid at maturity.
Assumptions
- The rate you enter stays the same for the whole tenure, and nothing is withdrawn early.
- No deposit date is asked for: a month counts as 1/12 of a year and a day as 1/365.
- Tax on the interest, and any tax deducted at source (TDS), is not included (see “Will the bank deduct TDS on this interest?” below).
Why can my bank’s figure differ slightly?
Banks use the same method but differ in a few details. SBI and ICICI Bank count every year as 365 days, as we do, while HDFC Bank, AU Small Finance Bank and Bandhan Bank count 366 days in a leap year. Banks count the actual days (28 to 31) in each month after the last whole quarter, while we count a month as 1/12 of a year, because we don’t ask for the deposit date. At exactly 6 months, HDFC Bank pays simple interest while SBI and ICICI Bank add interest for two quarters, and AU Small Finance Bank adds interest every quarter from 3 months. Some banks also round each interest payment to the rupee. Each detail moves the interest by a small share, so the gap grows with the deposit: one day’s interest on ₹1 crore at 7% is about ₹1,900.
Will the bank deduct TDS on this interest?
These rules are for residents of India. TDS is deducted only once the interest one bank, co-operative bank or post office credits or pays you in a tax year (a bank without core banking counts each branch on its own) is more than ₹50,000, or ₹1,00,000 if you are 60 or older during that year. Then it deducts TDS on the whole of that year’s interest, at 10%, or 20% if it does not have your PAN.
TDS is not an extra tax: it counts as tax you have paid.
If the tax on your whole income for the year will be nil, you can give the bank a written declaration, with your PAN, so that it does not deduct. Unless you are 60 or older at some point in the year, that works only while the year’s interest, together with the other income the rule counts (such as dividends and rent), stays within the amount on which no tax is charged.
The FD figures above are before TDS.
From the Income-tax Act, 2025 (sections 393(1), 393(6), 397(2) and 390(5)) and, for the rate, the Finance Act, 2026. Checked 4 October 2026.
At maturity or payouts: what is the difference?
With “at maturity” (a cumulative FD), each quarter’s interest is added to the deposit and earns interest too, so it comes to more in all. With payouts, the interest is paid to you every quarter or month and the deposit stays the same; it suits someone who needs a regular income from the deposit. The first card under the calculator shows the difference for your deposit.
Why is the monthly payout less than the rate ÷ 12?
Banks work out FD interest by the quarter. A monthly payout reaches you sooner than a quarterly one, so banks discount it: three monthly payouts, reinvested at the same rate, add up to one quarterly payout. At 7% on ₹1 lakh that is ₹580 a month rather than ₹583.
What changed (latest: 1 April 2026)
The rules this page uses, by the date each took effect, newest first. Each was last checked against its official source between 4 October 2026 and 5 October 2026.
-
5 changes
- TDS on interest from a bank, co-operative bank or post office: the yearly threshold (s.393(1) Table Sl. No. 5(ii))
- TDS rate on interest other than interest on securities, resident individuals (rates in force, Finance Act 2026)
- TDS when the payee does not give a valid PAN (s.397(2)(b)(i))
- Declaration for no TDS on interest when the year's tax is nil (s.393(6))
- Tax deducted at source counts as tax paid by the person it was deducted from (s.390(5))
Mistakes we have fixed on any page are listed on Corrections.