What is a fixed deposit?
A fixed deposit locks your money for a chosen tenure at a guaranteed rate. Bank and small finance bank FDs are insured by DICGC up to ₹5 Lakh per depositor per bank.
Taxation of FDs
- Interest is taxed at your income-tax slab
- TDS of 10% if interest exceeds ₹40,000 (₹50,000 for seniors)
- Submit Form 15G/15H to avoid TDS if eligible
- 5-year tax-saver FDs qualify under Sec 80C