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 50 Lakh FD for 1 year?

At an average bank interest rate of 7.1% per annum with quarterly compounding, a ₹50 Lakhs Fixed Deposit earns ₹3.65 L interest in 1 year, reaching a total maturity value of ₹53.65 L.

How much interest does a senior citizen get on a 50 Lakh FD?

Senior citizens receive an additional 0.50% interest rate (7.6% per annum), yielding approximately ₹3.80 L annual interest on a ₹50 Lakhs deposit.

Is TDS deducted on 50 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

50 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 ₹50 Lakhs deposit.

1-Yr Maturity Value₹53.65 L(at 7.1% p.a.)

Deposit Amount

₹50 Lakhs

Principal deposit

1-Yr Interest Earned

₹3.65 L

At 7.1% interest

3-Yr Maturity

₹61.75 L

+₹11.75 L interest

Senior Citizen 1-Yr

₹53.90 L

At 7.6% rate

Key Takeaways for a ₹50 Lakhs Fixed Deposit

For a ₹50 Lakhs Fixed Deposit at 7.1% interest rate with quarterly compounding, you earn ₹3,64,564 interest in 1 year, reaching a maturity value of ₹53,64,564.
Over 5 years, a ₹50 Lakhs FD generates ₹21,08,733 total interest, with maturity value growing to ₹71,08,733.
Senior citizens receive an additional 0.50% interest bonus (7.6% rate), earning ₹3,90,968 in 1 year.