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 3 years at 7% interest, compounded quarterly, grows to ₹24,62,879. You earn ₹4,62,879 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% | ₹3,91,236 | ₹23,91,236 |
| 6.5% | ₹4,26,815 | ₹24,26,815 |
| 7% | ₹4,62,879 | ₹24,62,879 |
| 7.5% | ₹4,99,433 | ₹24,99,433 |
| 8% | ₹5,36,484 | ₹25,36,484 |
| 8.5% | ₹5,74,037 | ₹25,74,037 |
| 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 ₹1,54,293 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 3 years earns about ₹4,62,879, and the maturity amount is ₹24,62,879.
Yes. FD interest is taxed at your income tax slab rate. Banks may also deduct TDS if interest exceeds the yearly threshold.