Fixed Deposits in Nepal: How to Compare and Choose

Interest rates, tenures, quarterly vs yearly payout, premature withdrawal rules and TDS - explained simply.

By DigitalNepal · Updated 2026-10-04

Try it right here:

Deposit amount Rs

Rate %/yr

Years

Payout

Maturity value: Rs 585,830

Interest earned: Rs 85,830

Before tax on interest (banks deduct TDS). Compare rates across banks - small % differences compound a lot.

Fixed deposits lock money with a bank for a set period at a fixed rate. They suit goals 1-5 years away and emergency-fund portions you must not touch.

Compare the effective maturity - not just the headline rate. Payout frequency, premature-break penalties and TDS change the real return.

Steps

1Compare maturity, not just rate
Run each offer through the FD calculator with its payout frequency. Quarterly compounding on 8% beats yearly payout on 8.1% more often than people expect.
2Match tenure to the goal
Money needed in a year should not sit in a 3-year FD. Ladder deposits (split across tenures) for flexibility.
3Read break rules
Ask the penalty for premature withdrawal and whether partial breaks are allowed before signing.
4Remember TDS
Banks deduct tax at source on interest. Your calculator figure is pre-tax - budget accordingly.

Good to know: Never put all savings in one bank product. Keep 3-6 months of expenses instantly accessible, then lock the rest by goal date.