FD interest on ₹5 lakh
How much interest does ₹5 lakh earn in an FD?
₹33,301 / year
At 6.5% compounded quarterly, like most banks. Left for 5 years, it grows to ₹6,90,210 — ₹1,90,210 of interest. A monthly-payout FD pays about ₹2,694 a month.
Open in the FD calculatorInterest earned, by rate and tenure
| Rate | 1 yr | 2 yrs | 3 yrs | 5 yrs | 10 yrs |
|---|---|---|---|---|---|
| 6.0% | ₹30.7K | ₹63.2K | ₹97.8K | ₹1.73 L | ₹4.07 L |
| 6.5% | ₹33.3K | ₹68.8K | ₹1.07 L | ₹1.9 L | ₹4.53 L |
| 7.0% | ₹35.9K | ₹74.4K | ₹1.16 L | ₹2.07 L | ₹5.01 L |
| 7.5% | ₹38.6K | ₹80.1K | ₹1.25 L | ₹2.25 L | ₹5.51 L |
| 8.0% | ₹41.2K | ₹85.8K | ₹1.34 L | ₹2.43 L | ₹6.04 L |
| 8.5% | ₹43.9K | ₹91.6K | ₹1.44 L | ₹2.61 L | ₹6.59 L |
Interest before tax on a cumulative FD, compounded quarterly.
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₹
₹5 lakh
%
Big banks pay about 6–6.6% now (more for seniors); small finance banks pay more
yrs
Maturity amount
₹6,90,210
₹1,90,210 interest on ₹5,00,000 at 6.5%
Principal and interest
Interest
₹1.9 L
Deposited
₹5,00,000
Interest earned
₹1,90,210
Effective yearly yield
6.66%
Growth
BalanceDeposited
Interest is taxed at your slab rate. At about ₹38,042 a year you stay under the ₹50,000 TDS limit with this bank.
Questions people ask
How much monthly interest will I get on ₹5 lakh?
With a monthly-payout FD at 6.5%, about ₹2,694 a month. That’s slightly less than a twelfth of the yearly interest: banks discount the quarterly rate to a month, because the interest is paid out instead of compounding.
Is FD interest on ₹5 lakh taxable?
Yes. It’s added to your income and taxed at your slab rate. In the 30% slab, the ₹33,301 you earn in a year is worth about ₹22,911 after tax.
Will the bank deduct TDS?
No, as long as your total interest from this bank stays under ₹50,000 a year (₹1 lakh for senior citizens). This FD earns about ₹33,301 a year.
What do senior citizens earn?
Most banks pay seniors 0.25–0.75% more. At 7%, ₹5 lakh earns about ₹35,930 in the first year.