Maturity amount and interest on a ₹5,00,000 fixed deposit at common bank rates.
A fixed deposit of ₹5,00,000 (5 lakh) for 2 years at 7% interest, compounded quarterly, grows to ₹5,74,441. You earn ₹74,441 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% | ₹63,246 | ₹5,63,246 |
| 6.5% | ₹68,819 | ₹5,68,819 |
| 7% | ₹74,441 | ₹5,74,441 |
| 7.5% | ₹80,111 | ₹5,80,111 |
| 8% | ₹85,830 | ₹5,85,830 |
| 8.5% | ₹91,598 | ₹5,91,598 |
| Tenure | Interest earned | Maturity amount |
|---|---|---|
| 1 year | ₹35,930 | ₹5,35,930 |
| 2 years | ₹74,441 | ₹5,74,441 |
| 3 years | ₹1,15,720 | ₹6,15,720 |
| 5 years | ₹2,07,389 | ₹7,07,389 |
FD interest is added to your income and taxed at your slab rate. Here you earn about ₹37,220 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 ₹5,00,000 FD for 2 years earns about ₹74,441, and the maturity amount is ₹5,74,441.
Yes. FD interest is taxed at your income tax slab rate. Banks may also deduct TDS if interest exceeds the yearly threshold.