Interest on a ₹5 lakh FD
A ₹5 lakh fixed deposit at 7% earns ₹35,930 in one year with quarterly compounding, and ₹2,07,389 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% | ₹33,301 | ₹68,819 | ₹1,06,704 | ₹1,90,210 |
| 7% | ₹35,930 | ₹74,441 | ₹1,15,720 | ₹2,07,389 |
| 7.5% | ₹38,568 | ₹80,111 | ₹1,24,858 | ₹2,24,974 |
| 8% | ₹41,216 | ₹85,830 | ₹1,34,121 | ₹2,42,974 |
Monthly interest option
If you choose monthly payout at 7%, you get about ₹2,917 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 ₹5 lakh FD for 1 year?
About ₹35,930 at 7% with quarterly compounding; ₹38,568 at 7.5%.