Interest on a ₹1 lakh FD
A ₹1 lakh fixed deposit at 7% earns ₹7,186 in one year with quarterly compounding, and ₹41,478 over five years. The table shows the interest earned (not the maturity amount) at common bank rates.
| Rate | 1 yr | 2 yrs | 3 yrs | 5 yrs |
|---|---|---|---|---|
| 6.5% | ₹6,660 | ₹13,764 | ₹21,341 | ₹38,042 |
| 7% | ₹7,186 | ₹14,888 | ₹23,144 | ₹41,478 |
| 7.5% | ₹7,714 | ₹16,022 | ₹24,972 | ₹44,995 |
| 8% | ₹8,243 | ₹17,166 | ₹26,824 | ₹48,595 |
Monthly interest option
If you choose monthly payout at 7%, you get about ₹583 a month (slightly less in practice, as banks discount monthly payouts).
Tax and TDS
FD interest is taxed at your slab rate. Banks deduct 10% TDS once interest from that bank crosses ₹50,000 in a year (₹1 lakh for senior citizens). This deposit alone stays under that limit at 7%.
Questions people ask
How much interest will I get on ₹1 lakh FD for 1 year?
About ₹7,186 at 7% with quarterly compounding; ₹7,714 at 7.5%.