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 3 years at 7% interest, compounded quarterly, grows to ₹6,15,720. You earn ₹1,15,720 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% | ₹97,809 | ₹5,97,809 |
| 6.5% | ₹1,06,704 | ₹6,06,704 |
| 7% | ₹1,15,720 | ₹6,15,720 |
| 7.5% | ₹1,24,858 | ₹6,24,858 |
| 8% | ₹1,34,121 | ₹6,34,121 |
| 8.5% | ₹1,43,509 | ₹6,43,509 |
| 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 ₹38,573 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 3 years earns about ₹1,15,720, and the maturity amount is ₹6,15,720.
Yes. FD interest is taxed at your income tax slab rate. Banks may also deduct TDS if interest exceeds the yearly threshold.