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 5 years at 7% interest, compounded quarterly, grows to ₹28,29,556. You earn ₹8,29,556 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% | ₹6,93,710 | ₹26,93,710 |
| 6.5% | ₹7,60,840 | ₹27,60,840 |
| 7% | ₹8,29,556 | ₹28,29,556 |
| 7.5% | ₹8,99,896 | ₹28,99,896 |
| 8% | ₹9,71,895 | ₹29,71,895 |
| 8.5% | ₹10,45,590 | ₹30,45,590 |
| 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 ₹1,65,911 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 5 years earns about ₹8,29,556, and the maturity amount is ₹28,29,556.
Yes. FD interest is taxed at your income tax slab rate. Banks may also deduct TDS if interest exceeds the yearly threshold.