Maturity amount and interest on a ₹3,00,000 fixed deposit at common bank rates.
A fixed deposit of ₹3,00,000 (3 lakh) for 5 years at 7% interest, compounded quarterly, grows to ₹4,24,433. You earn ₹1,24,433 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% | ₹1,04,057 | ₹4,04,057 |
| 6.5% | ₹1,14,126 | ₹4,14,126 |
| 7% | ₹1,24,433 | ₹4,24,433 |
| 7.5% | ₹1,34,984 | ₹4,34,984 |
| 8% | ₹1,45,784 | ₹4,45,784 |
| 8.5% | ₹1,56,838 | ₹4,56,838 |
| Tenure | Interest earned | Maturity amount |
|---|---|---|
| 1 year | ₹21,558 | ₹3,21,558 |
| 2 years | ₹44,665 | ₹3,44,665 |
| 3 years | ₹69,432 | ₹3,69,432 |
| 5 years | ₹1,24,433 | ₹4,24,433 |
FD interest is added to your income and taxed at your slab rate. Here you earn about ₹24,887 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 ₹3,00,000 FD for 5 years earns about ₹1,24,433, and the maturity amount is ₹4,24,433.
Yes. FD interest is taxed at your income tax slab rate. Banks may also deduct TDS if interest exceeds the yearly threshold.