Question 1

What is the current FD interest rate in India?

Accepted Answer

FD interest rates in India for 2024-2025 range from 5.5% to 9% per annum depending on the bank and tenure. Small finance banks often offer higher rates. Senior citizens typically get 0.25-0.50% additional interest.

Question 2

How is FD compound interest calculated?

Accepted Answer

FD compound interest is calculated using the formula: A = P × (1 + r/n)^(n×t), where P is the principal, r is the annual interest rate, n is the number of times interest is compounded per year, and t is the tenure in years.

Question 3

Is FD interest taxable in India?

Accepted Answer

Yes, FD interest is taxable as per your income tax slab. TDS (Tax Deducted at Source) of 10% is deducted if annual interest exceeds ₹40,000 (₹50,000 for senior citizens). You must declare FD interest in your ITR.

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