The minimum tenure for fixed deposits varies by bank but typically ranges from 7 days to 1 month for most banks. Some banks offer special short-term FDs with even shorter durations.

Yes, FD interest is taxable as per your income tax slab. Banks deduct 10% TDS if interest exceeds ₹40,000 (₹50,000 for senior citizens) annually. You can submit Form 15G/15H to avoid TDS if your total income is below taxable limits.

Interest payout frequency options vary by bank but typically include:

• Monthly
• Quarterly
• Half-yearly
• Yearly
• Cumulative (at maturity)

Choosing cumulative option gives higher returns due to compounding.

Regular FDs: Flexible tenure (7 days-10 years), interest taxable, can withdraw prematurely with penalty.

Tax-saving FDs: Lock-in period of 5 years, qualify for ₹1.5 lakh deduction under Section 80C, cannot be withdrawn before maturity.

Yes, most banks offer 0.25% to 0.75% higher interest rates for senior citizens (typically age 60+). Some banks provide additional benefits like monthly interest payouts for pension planning.

Premature withdrawal usually attracts a penalty of 0.5% to 1% on the interest rate. The bank will pay interest at the applicable rate for the actual duration or the penalized rate, whichever is lower. Tax-saving FDs cannot be broken prematurely.

More frequent compounding leads to higher returns. For example, quarterly compounding gives better returns than annual compounding at the same rate. Our FD calculator shows how different compounding options affect your maturity amount.