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Part of the CalcProMaster guides library · FD, RD, PPF, SIP & local tax
South-Asian savers juggle instruments the rest of the world doesn’t use: quarterly-compounded FDs, PPF’s annual ceiling, SIP instalments, TDS. These guides do the regional math with the regional rules.
Regional instruments have their own compounding conventions, and using the wrong one misprices them. An Indian FD at 7% “p.a.” usually compounds quarterly: effective yield = (1 + 0.07/4)⁴ − 1 ≈ 7.19%. SIP returns compound monthly and depend on entry timing, which is why the same SIP shows a different XIRR for every investor.
Tax treatment differs just as sharply: PPF interest is tax-free and the deposit deductible, while FD interest is taxable at slab rate. A 7% FD in the 30% bracket nets about 4.9% after tax — less than PPF’s tax-free 7.1%. The regional calculators encode these rules; the guides show the arithmetic so you can verify each step.
The compounding mechanics behind FD, RD and SIP returns.
Bracket logic that India’s slabs also follow.
Forward and reverse GST — India’s inclusive-pricing trap.
A = P × (1 + r/n)^(n×t) with quarterly compounding (n = 4) for most Indian bank FDs. A ₹100,000 FD at 7% for 5 years compounds to roughly ₹141,478 — the FD calculator applies your bank’s exact rate and tenure.
Interest accrues monthly on the lowest balance between the 5th and last day of each month, credits annually, and compounds yearly. Depositing before the 5th preserves the month’s interest — the PPF calculator follows this convention.