Interest on ₹5 Lakh Fixed Deposit for 5 Years
Calculate the maturity amount and interest earned on a ₹5 lakh fixed deposit for 5 years with quarterly compounding at 6.80%. Compare general vs senior citizen returns. Calculated using official RBI quarterly compounding conventions at 6.8% p.a. bank benchmark.
Adjust Parameters
Nominal rate quoted by your bank.
Applicable for Indian residents aged 60 and above.
Includes ₹2,00,469 accumulated interest
Principal vs Interest Breakdown
Total: ₹7,00,469| Category | Amount | Percentage |
|---|---|---|
| Deposited Principal | ₹5,00,000 | 71.4% |
| Total Interest Earned | ₹2,00,469 | 28.6% |
FD Maturity Schedule Across Tenures
| Tenure | Principal | Total Interest | Maturity Value | Effective Yield |
|---|---|---|---|---|
| 1 Year | ₹5,00,000 | ₹34,877 | ₹5,34,877 | 6.98% |
| 2 Years | ₹5,00,000 | ₹72,187 | ₹5,72,187 | 6.98% |
| 3 Years | ₹5,00,000 | ₹1,12,099 | ₹6,12,099 | 6.98% |
| 5 Years (Current) | ₹5,00,000 | ₹2,00,469 | ₹7,00,469 | 6.98% |
| 10 Years | ₹5,00,000 | ₹4,81,314 | ₹9,81,314 | 6.98% |
In Indian commercial banking, cumulative fixed deposits are compounded quarterly in accordance with RBI directives. For a ₹5,00,000 deposit over 5 Years (60 Months) at 6.8%, interest earned is added back to your balance every three months, resulting in an effective annual yield (APY) of 6.98%, which is higher than the nominal 6.8% quote. Senior citizens receive a valuable 0.50% p.a. additional rate across public and private sector banks in India. On this ₹5,00,000 deposit, the senior citizen slab delivers an extra ₹17,422 in interest over the 5-year period. Interest earned on fixed deposits is fully taxable as per your applicable income tax slab rate. Additionally, banks deduct Tax Deducted at Source (TDS) under Section 194A if total interest across branches exceeds ₹40,000 in a financial year (₹50,000 for senior citizens) unless Form 15G or 15H is submitted.
How Bank Fixed Deposit Interest Is Calculated
Transparent mathematical formulas and assumptions used across our financial engines.
Variables & Legend
₹5,00,000
6.8% p.a. (0.068)
n = 4 for standard quarterly compounding
5 years
Conventions & Assumptions
- In accordance with RBI directives, Indian commercial banks compute cumulative term deposit interest with quarterly compounding.
- Senior citizens (aged 60+) receive an additional 0.50% p.a. standard interest premium across all tenure slabs.
- TDS (Tax Deducted at Source) under Section 194A is deducted by banks if annual interest exceeds ₹40,000 (₹50,000 for senior citizens), unless Form 15G/15H is submitted.
Frequently Asked Questions
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