₹10,00,000 in a fixed deposit for 5 years at 7% (interest added every quarter) becomes ₹14,14,778. The interest earned is ₹4,14,778.
Deposit
₹10,00,000
Tenure
5 years
At 6.5%
₹13,80,420
At 7%
₹14,14,778
At 7.5%
₹14,49,948
Post office time deposit (7.5%)
₹14,49,948
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.