₹1 crore FD for 7 Years
A ₹1 crore fixed deposit held for 7 years at 7% annual interest with quarterly compounding matures at ₹1.63 crore. The interest component is ₹62.5 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 / 7 Years
| Rate | Principal | Interest | Maturity |
|---|---|---|---|
| 6% | ₹1,00,00,000 | ₹51,72,222 | ₹1,51,72,222 |
| 6.5% | ₹1,00,00,000 | ₹57,04,194 | ₹1,57,04,194 |
| 7% | ₹1,00,00,000 | ₹62,54,129 | ₹1,62,54,129 |
| 7.5% | ₹1,00,00,000 | ₹68,22,611 | ₹1,68,22,611 |
About This Scenario
A ₹1 crore fixed deposit held for 7 years at 7% annual interest with quarterly compounding matures at ₹1.63 crore. The interest component is ₹62.5 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 7 years?
At 7% quarterly-compounded interest, ₹1 crore FD matures at ₹1.63 crore — an interest earning of ₹62.5 lakh over 7 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.