Maturity amount and interest on a ₹20,00,000 fixed deposit at common bank rates.
A fixed deposit of ₹20,00,000 (20 lakh) for 2 years at 7% interest, compounded quarterly, grows to ₹22,97,764. You earn ₹2,97,764 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% | ₹2,52,985 | ₹22,52,985 |
| 6.5% | ₹2,75,278 | ₹22,75,278 |
| 7% | ₹2,97,764 | ₹22,97,764 |
| 7.5% | ₹3,20,443 | ₹23,20,443 |
| 8% | ₹3,43,319 | ₹23,43,319 |
| 8.5% | ₹3,66,391 | ₹23,66,391 |
| Tenure | Interest earned | Maturity amount |
|---|---|---|
| 1 year | ₹1,43,718 | ₹21,43,718 |
| 2 years | ₹2,97,764 | ₹22,97,764 |
| 3 years | ₹4,62,879 | ₹24,62,879 |
| 5 years | ₹8,29,556 | ₹28,29,556 |
FD interest is added to your income and taxed at your slab rate. Here you earn about ₹1,48,882 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 ₹20,00,000 FD for 2 years earns about ₹2,97,764, and the maturity amount is ₹22,97,764.
Yes. FD interest is taxed at your income tax slab rate. Banks may also deduct TDS if interest exceeds the yearly threshold.