New Delhi, Oct. 11 -- Fixed deposits (FDs) offer predictable returns, but the interest earned is taxable as per the depositor's applicable income tax slab. Therefore, investors should compare both pre-tax and post-tax returns before choosing a bank or deposit tenure.

According to FundsIndia's October 2026 report, FD interest rates across large banks vary by tenure, affecting the returns investors retain after tax. Here's what depositors need to know.

Interest earned on bank FDs is taxable under "Income from Other Sources" and added to the depositor's taxable income. The applicable income tax slab determines the final tax liability.

Banks may deduct tax at source (TDS) when interest exceeds the applicable threshold. For bank deposits, t...