₹25,000 FD for 3 Years
A ₹25,000 fixed deposit held for 3 years at 7% annual interest with quarterly compounding matures at ₹30,786. The interest component is ₹5,786 — fully taxable under ‘Income from Other Sources’. For higher post-tax returns on the same capital, consider equity mutual funds over similar tenures.
Rate Comparison for ₹25,000 / 3 Years
| Rate | Principal | Interest | Maturity |
|---|---|---|---|
| 6% | ₹25,000 | ₹4,890 | ₹29,890 |
| 6.5% | ₹25,000 | ₹5,335 | ₹30,335 |
| 7% | ₹25,000 | ₹5,786 | ₹30,786 |
| 7.5% | ₹25,000 | ₹6,243 | ₹31,243 |
About This Scenario
A ₹25,000 fixed deposit held for 3 years at 7% annual interest with quarterly compounding matures at ₹30,786. The interest component is ₹5,786 — fully taxable under ‘Income from Other Sources’. For higher post-tax returns on the same capital, consider equity mutual funds over similar tenures.
Frequently Asked Questions
What is the maturity of a ₹25,000 FD for 3 years?
At 7% quarterly-compounded interest, ₹25,000 FD matures at ₹30,786 — an interest earning of ₹5,786 over 3 years.
Is FD interest taxable?
Yes, FD interest is taxed under 'Income from Other Sources' at your slab rate. Banks deduct 10% TDS if interest exceeds ₹40,000/year (₹50,000 for senior citizens). Submit Form 15G/15H if your income is below taxable limit.
Are senior citizens offered higher FD rates?
Yes, typically 0.25–0.75% more than regular FDs. Some small-finance banks offer up to 1% extra for senior citizens.
Can I break an FD early?
Yes, but you'll lose 0.5–1% of the interest rate as penalty, and interest is calculated on the actual tenure rather than the booked tenure.