What is the current FD interest rate?▼
Top banks offer 7-7.5% for general citizens and 7.5-8% for senior citizens on FDs of 1-3 year tenure. Rates vary by bank and tenure.
Is FD interest taxable?▼
Yes, FD interest is taxable as per your income tax slab. Banks deduct TDS at 10% if annual interest exceeds ₹40,000 (₹50,000 for senior citizens).
What is quarterly compounding?▼
In quarterly compounding, interest is calculated and added to the principal every 3 months. This means you earn interest on interest every quarter, resulting in higher returns than simple interest.