₹1 crore FD for 3 Years
A ₹1 crore fixed deposit held for 3 years at 7% annual interest with quarterly compounding matures at ₹1.23 crore. The interest component is ₹23.1 lakh — fully taxable under ‘Income from Other Sources’. For higher post-tax returns on the same capital, consider equity mutual funds over similar tenures.
Rate Comparison for ₹1 crore / 3 Years
| Rate | Principal | Interest | Maturity |
|---|---|---|---|
| 6% | ₹1,00,00,000 | ₹19,56,182 | ₹1,19,56,182 |
| 6.5% | ₹1,00,00,000 | ₹21,34,076 | ₹1,21,34,076 |
| 7% | ₹1,00,00,000 | ₹23,14,393 | ₹1,23,14,393 |
| 7.5% | ₹1,00,00,000 | ₹24,97,164 | ₹1,24,97,164 |
About This Scenario
A ₹1 crore fixed deposit held for 3 years at 7% annual interest with quarterly compounding matures at ₹1.23 crore. The interest component is ₹23.1 lakh — fully taxable under ‘Income from Other Sources’. For higher post-tax returns on the same capital, consider equity mutual funds over similar tenures.
Frequently Asked Questions
What is the maturity of a ₹1 crore FD for 3 years?
At 7% quarterly-compounded interest, ₹1 crore FD matures at ₹1.23 crore — an interest earning of ₹23.1 lakh over 3 years.
Is FD interest taxable?
Yes, FD interest is taxed under 'Income from Other Sources' at your slab rate. Banks deduct 10% TDS if interest exceeds ₹40,000/year (₹50,000 for senior citizens). Submit Form 15G/15H if your income is below taxable limit.
Are senior citizens offered higher FD rates?
Yes, typically 0.25–0.75% more than regular FDs. Some small-finance banks offer up to 1% extra for senior citizens.
Can I break an FD early?
Yes, but you'll lose 0.5–1% of the interest rate as penalty, and interest is calculated on the actual tenure rather than the booked tenure.