Tax-Saver FD Calculator (80C)
Calculate returns on 5-year tax-saving Fixed Deposits — and your tax savings under Section 80C
What is a Tax-Saver FD?
A Tax-Saver Fixed Deposit is a special 5-year bank FD that qualifies for deduction under Section 80C of the Income Tax Act. You can invest up to ₹1,50,000 per financial year and claim the entire amount as a deduction — saving anywhere from ₹7,500 (at 5% slab) to ₹46,800 (at 30% slab including cess) on your tax bill. The trade-off is a mandatory 5-year lock-in — you cannot withdraw before maturity, period.
Section 80C Deduction — How It Works
Under the old tax regime, Section 80C allows a maximum deduction of ₹1.5 lakh per year across all eligible investments combined (EPF, PPF, ELSS, NSC, life insurance premium, etc.). If you invest ₹1.5 lakh in a tax-saver FD and you're in the 30% bracket, you save ₹1,50,000 × 30% = ₹45,000 in tax (plus cess, total ≈ ₹46,800).
Important: The 80C deduction is available only under the old tax regime. Under the new tax regime (default from FY 2023-24), there is no Section 80C deduction. Choose your regime before investing.
Current Tax-Saver FD Rates (Major Banks, June 2026)
| Bank | General (5-year) | Senior Citizens (5-year) |
|---|---|---|
| State Bank of India (SBI) | 6.50% | 7.50% |
| HDFC Bank | 7.00% | 7.50% |
| ICICI Bank | 7.00% | 7.50% |
| Axis Bank | 7.00% | 7.75% |
| Bank of Baroda | 6.80% | 7.30% |
| Punjab National Bank | 6.50% | 7.00% |
| Post Office (5-year TD) | 7.50% | 7.50% (no extra) |
Rates are indicative as of June 2026 and may vary. Always confirm with the bank before investing.
Tax-Saver FD vs Other 80C Options
| Option | Return (approx) | Lock-in | Tax on Returns | Risk |
|---|---|---|---|---|
| Tax-Saver FD | 6.5–7.5% | 5 years (strict) | Interest taxable | Zero |
| PPF | 7.1% (EEE) | 15 years (partial after 6Y) | Fully tax-free | Zero |
| ELSS Mutual Fund | 12–16% (market-linked) | 3 years (shortest) | LTCG 12.5% above ₹1.25L | Market risk |
| NSC | 7.7% | 5 years | Interest taxable (accrues annually) | Zero |
| Post Office TD (5Y) | 7.5% | 5 years | Interest taxable | Zero |
| Life Insurance (ULIP) | Varies | 5 years | Maturity exempt (certain conditions) | Low to medium |
The Real Return Calculation
Let's say you invest ₹1.5 lakh in a tax-saver FD at 7% for 5 years (quarterly compounding). Maturity value ≈ ₹2,12,000. Interest earned ≈ ₹62,000. If you're in the 30% bracket, tax on interest ≈ ₹18,600. But you also saved ₹46,800 in tax on the investment! Net picture: you effectively invested ₹1,03,200 (₹1,50,000 minus ₹46,800 tax saved) and received ₹2,12,000 minus ₹18,600 tax = ₹1,93,400. Your effective return is dramatically higher than the stated 7%.