Savings & Fixed Returns Calculators

Guaranteed returns still need to clear inflation

The appeal of a fixed deposit or a small savings scheme is that the return is contractual. You know the maturity value on day one. That certainty is genuinely valuable for money you will need within a few years, for an emergency fund, or for anyone who cannot tolerate a drawdown.

The complication is that the headline rate is a nominal rate. If a deposit pays 7% while inflation runs at 6%, your purchasing power grows by roughly 1% a year, not 7%. Then tax applies to the full 7%. For a taxpayer in a higher bracket, an ordinary fixed deposit can post a negative real return while appearing to earn money.

This is why tax treatment deserves as much attention as the interest rate. PPF is exempt at contribution, accumulation and withdrawal — its effective post-tax return substantially exceeds a fixed deposit paying the same nominal rate. EPF and Sukanya Samriddhi carry similar advantages within their own eligibility rules.

Use these calculators to compare instruments on maturity value, then check the tax rules for each before committing. The scheme with the highest advertised rate is frequently not the one that leaves you with the most money.