
May 21, 2026
✦mint
Fixed Deposits: Can you save tax on FD interest? Key rules every depositor should know
Hey, did you know that the interest you earn on fixed deposits is actually taxed? It gets added to your total income and taxed based on your income slab. Banks deduct TDS, but this isn't the final tax. "Interest earned on fixed deposits is treated as 'Income from Other Sources'," so you must pay tax on it yearly.