₹2,00,000 in a fixed deposit for 10 years at 7% (interest added every quarter) becomes ₹4,00,319. The interest earned is ₹2,00,319.
Deposit
₹2,00,000
Tenure
10 years
At 6.5%
₹3,81,112
At 7%
₹4,00,319
At 7.5%
₹4,20,470
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.