Interest on a ₹25 lakh FD
A ₹25 lakh fixed deposit at 7% earns ₹1,79,648 in one year with quarterly compounding, and ₹10,36,945 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% | ₹1,66,504 | ₹3,44,097 | ₹5,33,519 | ₹9,51,049 |
| 7% | ₹1,79,648 | ₹3,72,204 | ₹5,78,598 | ₹10,36,945 |
| 7.5% | ₹1,92,840 | ₹4,00,554 | ₹6,24,291 | ₹11,24,870 |
| 8% | ₹2,06,080 | ₹4,29,148 | ₹6,70,604 | ₹12,14,868 |
Monthly interest option
If you choose monthly payout at 7%, you get about ₹14,583 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). At 7%, this deposit alone crosses that limit.
Questions people ask
How much interest will I get on ₹25 lakh FD for 1 year?
About ₹1,79,648 at 7% with quarterly compounding; ₹1,92,840 at 7.5%.