How is Fixed Deposit (FD) interest calculated?

Bank fixed deposit interest is typically compounded quarterly. The maturity value formula is A = P × (1 + r/n)^(n×t), where P is principal, r is annual interest rate, n is compounding frequency per year (4 for quarterly), and t is duration in years.

Is FD interest subject to TDS?

Yes, banks deduct TDS at 10% on FD interest if total interest exceeds ₹40,000 per financial year (₹50,000 for senior citizens). If PAN is not provided, TDS is deducted at 20%.

What is Tax Saver FD?

Tax Saver Fixed Deposits have a mandatory 5-year lock-in period and qualify for Section 80C tax deduction up to ₹1,50,000 per financial year.

What is the interest on a 15 Lakh FD for 1 year?

At an average bank interest rate of 7.1% per annum with quarterly compounding, a ₹15 Lakhs Fixed Deposit earns ₹1.09 L interest in 1 year, reaching a total maturity value of ₹16.09 L.

How much interest does a senior citizen get on a 15 Lakh FD?

Senior citizens receive an additional 0.50% interest rate (7.6% per annum), yielding approximately ₹1.14 L annual interest on a ₹15 Lakhs deposit.

Is TDS deducted on 15 Lakh FD interest?

TDS under Section 194A applies if total FD interest across all branches exceeds ₹40,000 per year (₹50,000 for senior citizens). Submit Form 15G/15H if your total income is below the taxable limit.

Fixed Deposit Interest Guide 2026

15 Lakh FD Interest Payout & Maturity Breakdown

Quarterly compounding interest, 1 to 5-year maturity values, senior citizen bonus rates, and tax deduction rules for a ₹15 Lakhs deposit.

1-Yr Maturity Value₹16.09 L(at 7.1% p.a.)

Deposit Amount

₹15 Lakhs

Principal deposit

1-Yr Interest Earned

₹1.09 L

At 7.1% interest

3-Yr Maturity

₹18.53 L

+₹3.53 L interest

Senior Citizen 1-Yr

₹16.17 L

At 7.6% rate

Key Takeaways for a ₹15 Lakhs Fixed Deposit

For a ₹15 Lakhs Fixed Deposit at 7.1% interest rate with quarterly compounding, you earn ₹1,09,369 interest in 1 year, reaching a maturity value of ₹16,09,369.
Over 5 years, a ₹15 Lakhs FD generates ₹6,32,620 total interest, with maturity value growing to ₹21,32,620.
Senior citizens receive an additional 0.50% interest bonus (7.6% rate), earning ₹1,17,290 in 1 year.