₹5 Lakh FD for 5 Years: Maturity at 7%
A ₹5 lakh fixed deposit for 5 years at 7%, compounded quarterly, matures at ₹7,07,389. The interest is ₹2,07,389, which works out to an effective yield of 7.19% a year.
That is the pre-tax figure. FD interest is added to your income and taxed at your slab rate, and the next sections show what that does.
Updated October 2026
- Maturity amount ₹7,07,389
- Interest earned ₹2,07,389
- Effective yield 7.19% quarterly compounding
- Deposit ₹5 lakh
Change the numbers
The calculator below opens with this example filled in. Edit any value to see your own figures, or open the full FD Calculator.
FD Details
₹5 Lakh
Compounding Frequency
Maturity Amount
₹7.07 Lakh
5 yr · 7% · Quarterly
Principal
₹5,00,000
Total Interest
₹2,07,389
Maturity Amount
₹7,07,389
Growth — Principal + Interest per Year
Year-by-Year Breakdown
| Year | Opening Balance | Interest Earned | Closing Balance |
|---|---|---|---|
| Year 1 | ₹5,00,000 | ₹35,930 | ₹5,35,930 |
| Year 2 | ₹5,35,930 | ₹38,511 | ₹5,74,441 |
| Year 3 | ₹5,74,441 | ₹41,279 | ₹6,15,720 |
| Year 4 | ₹6,15,720 | ₹44,245 | ₹6,59,965 |
| Year 5 | ₹6,59,965 | ₹47,424 | ₹7,07,389 |
How the interest builds
Interest rises each year because it is earned on a growing balance, from ₹35,930 in year 1 to ₹47,424 in year 5.
What tax does to it
Banks deduct TDS when the interest you earn from one bank goes above a yearly threshold, which was ₹50,000 for most depositors (₹1 lakh for senior citizens) in FY 2025-26. The highest single-year interest here is ₹47,424, so this FD alone stays below it. Interest from your other deposits at the same bank counts towards the limit, and you owe tax on all FD interest whether or not TDS is deducted.
If you are in the 30% slab (plus 4% cess), your return after tax comes to about 4.8% a year. If inflation runs near that level, the deposit protects your money but adds little real growth.
How much compounding matters
The gap between monthly and yearly compounding is only ₹7,537 over 5 years. The rate matters far more: 0.5% extra would add about ₹17,585.
| Interest paid | Maturity amount |
|---|---|
| Monthly compounding | ₹7,08,813 |
| Quarterly compounding | ₹7,07,389 |
| Half-yearly compounding | ₹7,05,299 |
| Yearly compounding | ₹7,01,276 |
| Simple interest | ₹6,75,000 |
Same ₹5 lakh, 7% and 5 years.
The ₹5 lakh insurance limit
Bank deposits are insured by DICGC up to ₹5 lakh per depositor per bank, counting principal and interest together. This deposit grows to ₹7,07,389, which is above that. Spreading a large deposit across more than one bank keeps all of it within the cover. The current limit is on the DICGC website; it has been ₹5 lakh for several years.
Common questions
How much interest will ₹5 lakh earn in 5 years?
₹2,07,389 at 7% with quarterly compounding, for a maturity value of ₹7,07,389.
Is FD interest taxable?
Yes. It is added to your income and taxed at your slab rate each year, even if the money is paid only at maturity. Banks may also deduct TDS above a threshold.
Does monthly or quarterly compounding pay more?
Slightly: ₹7,08,813 for monthly against ₹7,07,389 for quarterly on this deposit.
Is 7% what banks are offering?
It is an illustration. FD rates vary by bank, tenure and depositor, and senior citizens usually get a higher rate. Enter the rate on your quote in the calculator above.