₹1,00,000 in a fixed deposit for 5 years at 7% (interest added every quarter) becomes ₹1,41,478. The interest earned is ₹41,478.
Deposit
₹1,00,000
Tenure
5 years
At 6.5%
₹1,38,042
At 7%
₹1,41,478
At 7.5%
₹1,44,995
Post office time deposit (7.5%)
₹1,44,995
Tax on this interest
FD interest is added to your income and taxed at your slab rate. Banks deduct TDS when interest crosses the yearly limit; you can give Form 15G or 15H if your income is below the taxable limit.