Tax on Interest from Savings Account

Seth (M) (148 Points)

21 June 2011  

 

Hello, My bank has NOT deducted any TDS on SAVINGS BANK ACCOUNT interest, although the interest amount earned is more than 20,000. 
When I called up the banker, he informed me that "there is NO tax to be paid on savings bank account interest. Tax is only required on interest earned on Fixed deposits account."
Is it correct? 
Please can the experts provide the right guidance on whether tax is to be paid on savings account interest or is it only on Fixed deposit interest?
 
Thanks