₹5,00,000 in a fixed deposit for 5 years at 7% (interest added every quarter) becomes ₹7,07,389. The interest earned is ₹2,07,389.
Deposit
₹5,00,000
Tenure
5 years
At 6.5%
₹6,90,210
At 7%
₹7,07,389
At 7.5%
₹7,24,974
Post office time deposit (7.5%)
₹7,24,974
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.