A ₹1 lakh FD at 7% for 5 years matures to about ₹1,41,478. That's ₹41,478 of interest earned, using the quarterly compounding most Indian banks apply.
Thinking of parking ₹1 lakh in a fixed deposit? At 7% with quarterly compounding, a ₹1 lakh FD grows to about ₹1,41,478 in 5 years — ₹41,478 of guaranteed interest. The table below shows how the maturity value changes with tenure, so you can plan around your goals and the TDS threshold.
| Deposit amount | ₹1,00,000 |
| Interest rate (annual) | 7% |
| Tenure | 5 years |
| Compounding | Quarterly |
| Interest earned | ₹41,478 |
| Maturity amount | ₹1,41,478 |
| Tenure | Interest earned | Maturity value |
|---|---|---|
| 1 year | ₹7,186 | ₹1,07,186 |
| 2 years | ₹14,888 | ₹1,14,888 |
| 3 years | ₹23,144 | ₹1,23,144 |
| 5 years | ₹41,478 | ₹1,41,478 |
Indian banks compound FD interest quarterly, so maturity = P × (1 + r/4)^(4×t), where P is the principal, r is the annual rate, and t is the tenure in years. Interest is fully taxable as per your income slab, and banks deduct 10% TDS once annual interest crosses ₹40,000 (₹50,000 for senior citizens) — you can submit Form 15G/15H to avoid TDS if your income is below the taxable limit. Senior citizens usually get ~0.5% extra. Use the interactive FD calculator to try your bank's exact rate and tenure.
A ₹1 lakh FD at 7% for 5 years earns about ₹41,478 in interest, maturing to ₹1,41,478 with quarterly compounding. For 1 year it earns about ₹7,186.
Yes — FD interest is fully taxable as per your income slab. Banks deduct 10% TDS once your annual FD interest crosses ₹40,000 (₹50,000 for senior citizens). You can submit Form 15G/15H to avoid TDS if your total income is below the taxable limit.
An FD gives guaranteed, fixed returns and is ideal for short-term goals and capital safety. Over the long term, equity SIPs have historically delivered higher returns but carry market risk. Many people keep an emergency fund in FDs and invest long-term money via SIPs.