₹5,00,000 in a fixed deposit for 10 years at 7% (interest added every quarter) becomes ₹10,00,799. The interest earned is ₹5,00,799.
Deposit
₹5,00,000
Tenure
10 years
At 6.5%
₹9,52,779
At 7%
₹10,00,799
At 7.5%
₹10,51,175
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.