Fixed Deposit Maturity Explained
A Fixed Deposit (FD) is a low-risk investment where you deposit a lump sum for a fixed tenure at a guaranteed interest rate. Most Indian banks compound FD interest quarterly.
The maturity is calculated as P × (1 + r/4)^(4×years). Senior citizens typically earn an additional 0.25%-0.50% interest. FD interest is taxable as per your income slab.
Frequently Asked Questions
How is FD interest compounded?
Most Indian banks compound FD interest quarterly, meaning interest is calculated and added to the principal every three months.
Is FD interest taxable?
Yes. FD interest is added to your income and taxed as per your slab. TDS applies if interest exceeds ₹40,000 per year (₹50,000 for seniors).