Interest on a ₹2 lakh FD
A ₹2 lakh fixed deposit at 7% earns ₹14,372 in one year with quarterly compounding, and ₹82,956 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% | ₹13,320 | ₹27,528 | ₹42,682 | ₹76,084 |
| 7% | ₹14,372 | ₹29,776 | ₹46,288 | ₹82,956 |
| 7.5% | ₹15,427 | ₹32,044 | ₹49,943 | ₹89,990 |
| 8% | ₹16,486 | ₹34,332 | ₹53,648 | ₹97,189 |
Monthly interest option
If you choose monthly payout at 7%, you get about ₹1,167 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 ₹2 lakh FD for 1 year?
About ₹14,372 at 7% with quarterly compounding; ₹15,427 at 7.5%.