Tax Saving FD Calculator - Section 80C FD Calculator
Calculate tax saving fixed deposit returns and tax benefits under Section 80C. Get accurate 5-year tax saver FD interest calculations in India.
Calculate Now
Calculate Tax Saving FD Returns
Principal vs Interest
Principal
₹1,50,000
Interest Earned
₹57,063
Maturity Amount
₹2,07,063
Tax Saved (80C)
₹45,000
Tax on Interest
-₹17,119
Net Benefit
₹84,944
Save this calculation and set a reminder
What is Tax Saving FD?
Tax Saving Fixed Deposit is a 5-year FD that qualifies for tax deduction under Section 80C of the Income Tax Act. By investing up to ₹1.5 lakh in tax-saving FD, you can reduce your taxable income and save tax up to ₹46,800 (at 30% bracket + cess).
Unlike regular FDs, tax-saving FDs have a mandatory 5-year lock-in period with no premature withdrawal facility. They are offered by banks and post offices and provide guaranteed returns along with tax benefits.
How Tax Saving FD Works
- • Minimum investment: ₹1,000 (varies by bank)
- • Maximum 80C benefit: ₹1,50,000 per year
- • Lock-in period: 5 years (mandatory)
- • Interest: Taxable as per your slab
- • No premature withdrawal allowed
- • No loan against tax-saving FD
Example Tax Saving FD Calculation
- Investment: ₹1,50,000
- Interest Rate: 6.5% p.a.
- Tenure: 5 years
- Maturity Amount: ₹2,06,066
- Interest Earned: ₹56,066
- Tax Saved (30% bracket): ₹45,000
- Tax on Interest: ₹16,820
- Net Benefit: ₹84,246
Tax Saving FD vs Other 80C Options
| Investment | Returns | Lock-in | Risk |
|---|---|---|---|
| Tax Saving FD | 6-7% | 5 years | Very Low |
| PPF | 7.1% | 15 years | Very Low |
| ELSS | 12-15%* | 3 years | High |
| NSC | 7.7% | 5 years | Very Low |
*ELSS returns are market-linked and not guaranteed
Benefits of Tax Saving FD
- Tax Deduction: Up to ₹1.5 lakh under Section 80C
- Guaranteed Returns: Fixed interest rate for entire tenure
- Capital Safety: Principal is fully secure
- Simple Investment: No complex documentation
- Shorter Lock-in: 5 years vs 15 years for PPF
Who Should Invest in Tax Saving FD?
- Conservative investors who want guaranteed returns
- Those who have exhausted PPF/EPF limits
- Investors uncomfortable with ELSS market risk
- Senior citizens seeking safe tax-saving option
- Those who don't want 15-year lock-in of PPF
Frequently Asked Questions
Disclaimer
This calculator is provided for informational purposes only. The results are estimates and should not be considered as financial advice. Actual values may vary based on various factors. Please consult a certified financial advisor before making any financial decisions.
Quick Tips
- Use the sliders for quick adjustments
- Compare different scenarios to find the best option
- Download PDF to save your calculations
- Share results with family for financial planning