Understanding Fixed Deposit (FD) Rates in Nepal
Fixed Deposits remain the most popular investment for conservative savers in Nepal. With major commercial banks like Nabil Bank, Global IME, and Nepal Bank frequently updating their rates, calculating your precise maturity amount is essential.
How Compounding Works in Nepali Banks
In Nepal, interest on Fixed Deposits is typically compounded quarterly (every 3 months). This means your interest earns interest four times a year, resulting in a slightly higher “Effective Interest Rate” compared to simple interest.
The 5% TDS Rule
According to the Inland Revenue Department (IRD) of Nepal, interest income from deposits in banks and financial institutions is subject to a 5% Final Withholding Tax (TDS) for individual residents. Our calculator automatically deducts this so you see the actual amount that will be credited to your account.
- Individual Tax: 5% of Interest Earned
- Institutional Tax: 15% (Contact your bank for specific corporate rates)