FD, post-tax
The brochure compounds the headline rate. Your slab compounds against you — interest is taxed every year, not at the end.
What 8.0% promises
₹14.9 L
₹10.0 L for 5 years, cumulative
What lands after slab tax
₹13.3 L
Effective rate 5.50%, not 8.0%
Headline rate
8.00%
What the bank quotes
Effective post-tax rate
5.50%
In the 30% (incl. cess) slab
In-hand maturity
₹13.3 L
After 5 years
Monthly payout option
₹4,587
Post-tax, non-cumulative
Inputs
Deposit₹10.0 L
Tenure5 yrs
Your income tax slab
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 ₹5L per bank per depositor.
Maturity · brochure vs in-hand
Year by year
| Year | Opening | Interest (pre-tax) | Slab tax | Balance (brochure) |
|---|---|---|---|---|
| 1 | ₹10.0 L | ₹82,432 | ₹25,719 | ₹10.8 L |
| 2 | ₹10.8 L | ₹89,227 | ₹27,839 | ₹11.7 L |
| 3 | ₹11.7 L | ₹96,582 | ₹30,134 | ₹12.7 L |
| 4 | ₹12.7 L | ₹1,04,544 | ₹32,618 | ₹13.7 L |
| 5 | ₹13.7 L | ₹1,13,162 | ₹35,306 | ₹14.9 L |