Is FD interest taxable?

Yes, fully, at your income tax slab rate. Banks deduct TDS at 10% once interest crosses ₹40,000 in a year (₹50,000 for senior citizens).

Which is better, FD or SIP?

FDs give guaranteed, taxable returns of 6–7.5%. Equity SIPs have higher expected returns with risk. Match the product to your time horizon.

Indian banks compound FD interest quarterly by default. Enter your deposit, rate and tenure to see the maturity amount.

Maturity amount

₹1,07,186

Deposit vs interest

A = P × (1 + r ÷ n)^(n × t), where n is compounding periods per year and t is years. Simple interest: A = P × (1 + r × t).

₹1 lakh at 7% for 1 year, compounded quarterly: maturity ₹1,07,186.

Is FD interest taxable?: Yes, fully, at your income tax slab rate. Banks deduct TDS at 10% once interest crosses ₹40,000 in a year (₹50,000 for senior citizens).
Which is better, FD or SIP?: FDs give guaranteed, taxable returns of 6–7.5%. Equity SIPs have higher expected returns with risk. Match the product to your time horizon.

Last reviewed 2026-10-31. Results are estimates for information only and do not constitute financial, tax or legal advice.