The tax bite

Maturity · in-hand · cumulative FD

Explained

The hero above shows monthly interest payout — the non-cumulative FD product where interest is credited every month (net of slab tax). The chart and “in-hand at maturity” number below the tax-bite show the cumulative FD product where interest reinvests until maturity. Same deposit, same rate, same post-tax outcome economically — you pick the payout mode at time of deposit.

Interest accrues taxably every year even in a cumulative FD — TDS applies above ₹40,000 of interest per bank per year (₹50,000 for seniors). DICGC insures only ₹5 L per bank per depositor.