Interest on a ₹10 lakh FD
A ₹10 lakh fixed deposit at 7% earns ₹71,859 in one year with quarterly compounding, and ₹4,14,778 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% | ₹66,602 | ₹1,37,639 | ₹2,13,408 | ₹3,80,420 |
| 7% | ₹71,859 | ₹1,48,882 | ₹2,31,439 | ₹4,14,778 |
| 7.5% | ₹77,136 | ₹1,60,222 | ₹2,49,716 | ₹4,49,948 |
| 8% | ₹82,432 | ₹1,71,659 | ₹2,68,242 | ₹4,85,947 |
Monthly interest option
If you choose monthly payout at 7%, you get about ₹5,833 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). At 7%, this deposit alone crosses that limit.
Questions people ask
How much interest will I get on ₹10 lakh FD for 1 year?
About ₹71,859 at 7% with quarterly compounding; ₹77,136 at 7.5%.