Fixed deposit — what it pays after tax
What a bank FD really pays after the 6% withholding tax, paid-out versus reinvested interest, and what that is worth after inflation.
Arithmetic on the rate you typed, not a recommendation of any bank or product. Check the bank's own maturity statement; small differences come from day-count and rounding conventions.
रू 5,00,000 at 7.00% for 12 months earns रू 35,929.52; the bank withholds 6.00% (रू 2,155.77) and you keep रू 33,773.74 — a net 6.75% a year, not the poster's rate.
Against 6.00% inflation the real return is about 0.55% a year: रू 5,33,773.74 at maturity buys what रू 5,03,560.14 buys today. The deposit keeps pace, a little ahead.
- Ask the bank whether the rate is for reinvested or paid-out interest, and whether it changes for a longer term — a year at a better rate often beats three months rolled over.
- Compare the net yield here with the SIP and compound-interest tools on this site before locking a large sum for years.
- Interest at the quoted annual rate, calculated and paid (or credited) quarterly, as Nepali banks do; "reinvested" compounds every quarter, "paid out" is simple interest.
- Tax withheld on interest at 6% for a resident individual (final withholding); the page lets you change it.
- No premature-withdrawal penalty and no change of rate during the term.
- Inflation constant over the term; the real figure is a guide, not a forecast.
A worked example
The form starts with these figures (in NPR) so you can see how it works before typing your own. They are made up — nobody's real numbers appear here.
Questions people ask
Why is my interest less than rate × amount?
Because 6% of it is withheld as tax before it reaches you, and because a quoted rate is annual — a 12-month deposit gets the full rate, a 3-month one gets a quarter of it.
Reinvest or take the interest?
Reinvesting compounds — each quarter's interest earns interest — so it ends higher. Taking it out makes sense only if you need the income.
Is the 6% tax the end of it?
For a resident individual, yes: it is a final withholding, not added to your salary tax. Companies are withheld at 15%.
What does "in today's money" mean?
Prices rise while the money sits. The page divides the maturity amount by inflation over the term, so you can see whether the deposit actually grew your buying power or only the number.
Do you keep what I type here?
No. The figures are used to work out the answer and are not stored, and never appear in the page address.
These are estimates. The figures depend entirely on the numbers you enter and on assumptions that are listed on every result. They are not financial advice, and a bank, employer or authority may use different rules. Check anything important with them before you decide.
We do not keep your figures. Salary, debt and savings you type here are used to work out the answer and are not stored, and never appear in the page address. The only thing remembered is your country and language choice (a small cookie), so the currency can be suggested next time — never a figure you typed. Anonymous counters record that a calculation happened, not what it was.