Maturity amount and interest on a ₹2,00,000 fixed deposit at common bank rates.
A fixed deposit of ₹2,00,000 (2 lakh) for 2 years at 7% interest, compounded quarterly, grows to ₹2,29,776. You earn ₹29,776 in interest.
7% is an example rate. FD rates differ between banks and change often — check your bank's current rate.
| Interest rate | Interest earned | Maturity amount |
|---|---|---|
| 6% | ₹25,299 | ₹2,25,299 |
| 6.5% | ₹27,528 | ₹2,27,528 |
| 7% | ₹29,776 | ₹2,29,776 |
| 7.5% | ₹32,044 | ₹2,32,044 |
| 8% | ₹34,332 | ₹2,34,332 |
| 8.5% | ₹36,639 | ₹2,36,639 |
| Tenure | Interest earned | Maturity amount |
|---|---|---|
| 1 year | ₹14,372 | ₹2,14,372 |
| 2 years | ₹29,776 | ₹2,29,776 |
| 3 years | ₹46,288 | ₹2,46,288 |
| 5 years | ₹82,956 | ₹2,82,956 |
FD interest is added to your income and taxed at your slab rate. Here you earn about ₹14,888 a year on average. Banks deduct TDS when your interest with them crosses the yearly threshold (₹50,000 for most people and ₹1 lakh for senior citizens from FY 2025-26). If your total income is below the taxable limit, submit Form 15G (or 15H if you're a senior citizen) to avoid TDS.
At 7% with quarterly compounding, a ₹2,00,000 FD for 2 years earns about ₹29,776, and the maturity amount is ₹2,29,776.
Yes. FD interest is taxed at your income tax slab rate. Banks may also deduct TDS if interest exceeds the yearly threshold.