₹50 lakh FD for 7 Years
A ₹50 lakh fixed deposit held for 7 years at 7% annual interest with quarterly compounding matures at ₹81.3 lakh. The interest component is ₹31.3 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 ₹50 lakh / 7 Years
| Rate | Principal | Interest | Maturity |
|---|---|---|---|
| 6% | ₹50,00,000 | ₹25,86,111 | ₹75,86,111 |
| 6.5% | ₹50,00,000 | ₹28,52,097 | ₹78,52,097 |
| 7% | ₹50,00,000 | ₹31,27,064 | ₹81,27,064 |
| 7.5% | ₹50,00,000 | ₹34,11,306 | ₹84,11,306 |
About This Scenario
A ₹50 lakh fixed deposit held for 7 years at 7% annual interest with quarterly compounding matures at ₹81.3 lakh. The interest component is ₹31.3 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 ₹50 lakh FD for 7 years?
At 7% quarterly-compounded interest, ₹50 lakh FD matures at ₹81.3 lakh — an interest earning of ₹31.3 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.