FD Summary
| Principal Amount | ₹50,00,000 |
| Interest Rate | 7.0% p.a. |
| Tenure | 10 years |
| Compounding | Quarterly |
| Interest Earned | ₹50,07,987 |
| Maturity Amount | ₹1,00,07,987 |
Tax Note: The ₹50,07,987 interest earned is fully taxable at your income slab rate. In the 30% bracket, your after-tax interest is approximately ₹33,65,367.
Impact of Compounding Frequency
Same principal, same rate — different compounding gives different returns:
| Compounding | Principal | Interest Rate | Interest Earned | Maturity Amount |
|---|---|---|---|---|
| Monthly | ₹50,00,000 | 7.0% | ₹50,48,307 | ₹1,00,48,307 |
| Quarterly | ₹50,00,000 | 7.0% | ₹50,07,987 | ₹1,00,07,987 |
| Half-Yearly | ₹50,00,000 | 7.0% | ₹49,48,944 | ₹99,48,944 |
| Annually | ₹50,00,000 | 7.0% | ₹48,35,757 | ₹98,35,757 |
Returns at Different Interest Rates
How much does a 0.5% rate difference matter? More than you think:
| Interest Rate | Interest Earned | Maturity Amount |
|---|---|---|
| 6.5% | ₹45,27,794 | ₹95,27,794 |
| 7.0% | ₹50,07,987 | ₹1,00,07,987 |
| 7.25% | ₹52,56,852 | ₹1,02,56,852 |
| 7.5% | ₹55,11,746 | ₹1,05,11,746 |
| 8.0% | ₹60,40,198 | ₹1,10,40,198 |
Calculate Your FD Returns
Enter your exact deposit amount, interest rate, and tenure to get precise maturity value.
Use FD CalculatorFrequently Asked Questions
What is the maturity amount for ₹50 Lakh FD for 10 years?
At 7.0% interest with quarterly compounding, ₹50 Lakh FD matures to ₹1,00,07,987 in 10 years. You earn ₹50,07,987 as interest income.
Is FD interest taxable in India?
Yes. FD interest is added to your income and taxed at your slab rate. Banks deduct TDS at 10% if interest exceeds ₹40,000 per year (₹50,000 for senior citizens). You can submit Form 15G/15H to avoid TDS if your income is below taxable limit.
Which compounding frequency gives the best FD returns?
Monthly compounding gives the highest effective yield. For ₹50 Lakh at 7.0% for 10 years: monthly compounding gives ₹1,00,48,307, quarterly gives ₹1,00,07,987, and annual gives ₹98,35,757.
Should I break my FD if interest rates rise?
Breaking an FD early typically incurs a 0.5–1% penalty. Do the math: if new rates are 1%+ higher, breaking and reinvesting often makes sense for longer tenures. For FDs with less than 6 months remaining, it's usually not worth it.
FD vs SIP — which is better for this amount?
FD gives guaranteed returns of ₹1,00,07,987 in 10 years. SIP in equity mutual funds could potentially grow ₹50 Lakh lumpsum to ₹1,55,29,241 at 12% — but with market risk. FD suits short-term goals or emergency funds. SIP suits 5+ year wealth creation goals.