Fixed Deposit (FD) Quarterly Compounding Explained
Fixed Deposits provide safe, guaranteed returns. Remember that interest earned above ₹40,000 (₹50,000 for senior citizens) is subject to 10% TDS under Section 194A.
Frequently Asked Questions (FAQs)
How is FD interest compounded in Indian banks?
Indian banks compound Fixed Deposit interest quarterly (4 times a year) using the formula: A = P(1 + r/4)^(4n).
