₹5 lakh for 3 years
At 7.5% compounded quarterly, the deposit matures at ₹6,24,858: ₹1,24,858 of interest, an effective 7.71% a year.
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FD Calculator
Calculate fixed deposit maturity amount and interest earned
₹1 lakh in a fixed deposit for 5 years at 7.5% matures at ₹1,44,995, of which ₹44,995 is interest before tax.
Maturity Amount
₹1,44,995
- Principal
- ₹1,00,000
- Interest Earned
- ₹44,995
- Interest After Tax
- ₹30,956
Before tax. At the 30% band plus cess, ₹14,038 of the interest goes in tax.
Breakdown
- Deposit amount
- ₹1,00,000
- Interest rate
- 7.50% p.a.
- Tenure
- 5 years
- Compounded
- 4× a year
- Effective annual yield
- 7.714%
- Interest earned
- ₹44,995
- Tax on interest (30% + cess)
- ₹14,038
- TDS deducted (s.194A)
- ₹0
- Maturity amount
- ₹1,44,995
Composition
Principal₹1,00,000 · 69.0%
Interest₹44,995 · 31.0%
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How this is calculated
Formula
A = P × (1 + r/n)^(n×t)
- A
- = maturity amount
- P
- = deposit
- r
- = annual rate as a decimal
- n
- = compounding periods per year
- t
- = tenure in years
With your numbers
- 1Rate per periodr ÷ n0.0750 ÷ 4 = 0.018750
- 2Number of periodsn × t4 × 5 = 20
- 3Compound itA = P × (1 + r/n)^(n×t)₹1,00,000 × (1 + 0.018750)^20 = ₹1,44,995
- 4Interest earnedinterest = A − P₹1,44,995 − ₹1,00,000 = ₹44,995
Maturity amount₹1,44,995
- Compounding 4 times a year turns a 7.50% nominal rate into an effective yield of 7.714% — which is the number to use when comparing against any other instrument.
- This is the cumulative (reinvestment) option. A non-cumulative FD pays the interest out each period instead, so nothing compounds and the total is lower.
- Tax is not deducted here. Interest is added to your income and taxed at your slab in the year it accrues, whether or not the bank has paid it out yet.
What is a fixed deposit?
A deposit placed with a bank for a fixed term at a rate agreed up front. The rate does not move for the life of the deposit, which is the entire point of it.
It is the most predictable instrument available to a retail saver in India, and the one most likely to lose to inflation after tax.
Key features
- • Rate is locked at the time of booking
- • DICGC insurance covers ₹5 lakh per depositor per bank
- • Premature withdrawal is allowed, at a 0.5–1% rate penalty
- • A 5-year tax-saving FD qualifies under 80C but cannot be broken early
- • Senior citizens are typically offered 0.25–0.75% more
Frequently Asked Questions
Year by year
₹1,00,000 for 5 years at 7.5%, compounded quarterly as banks do on a cumulative deposit.
Show the table (5 rows)Hide the table
| Year | Interest earned that year | Balance at year end |
|---|---|---|
| 1 | ₹7,714 | ₹1,07,714 |
| 2 | ₹8,309 | ₹1,16,022 |
| 3 | ₹8,949 | ₹1,24,972 |
| 4 | ₹9,640 | ₹1,34,611 |
| 5 | ₹10,383 | ₹1,44,995 |
Before tax. Each year’s interest is taxable in that year, whether it is paid out or added to the deposit.
Worked examples
The same deposit for a senior citizen
With a 0.5% senior premium the rate is 8.0%, and maturity ₹6,34,121: ₹9,263 more. Each bank sets its own premium; check yours.
Open this in the calculator₹10 lakh with monthly interest payouts
Taking the interest every month pays ₹6,250 a month, ₹3,75,000 over 5 years, and returns the ₹10,00,000 at the end. Left to compound instead, the same deposit would earn ₹4,49,948.
Open this in the calculatorCommon mistakes
Comparing the quoted rate with another instrument’s yield
7.5% compounded quarterly earns an effective 7.71% a year. Compare deposits, bonds and small-savings schemes on that effective figure, and on what is left after tax.
Deposit conventionsTaking TDS for the tax
Banks deduct TDS at 10% under Section 194A, but the interest is taxed at your slab rate. At the 30% slab under the new regime, the table’s ₹44,995 of interest carries ₹14,038 of tax with cess; TDS is only a credit towards it, and the rest is due with your return.
TDS calculatorAssuming a cumulative FD escapes TDS until maturity
TDS is tested on the interest accrued in each financial year, credited or not, against the ₹50,000 threshold. ₹10 lakh at 7.5% accrues ₹77,136 in its first year, so TDS is deducted in 5 years of 5, not once at the end.
TDS calculator
Questions this answers
How much will ₹1 lakh in an FD give after 5 years?
₹1,44,995 at 7.5% compounded quarterly, of which ₹44,995 is interest. Try it
How much monthly interest does a ₹10 lakh FD pay?
₹6,250 a month at 7.5%, before tax. Try it
Is FD interest taxable?
Yes, at your slab rate, every year as it accrues. At the 30% slab under the new regime, ₹44,995 of interest leaves ₹30,956 after tax and cess. Try it
Related Tools
Terms used here
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