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 2 Lakh FD for 1 year?

At an average bank interest rate of 7.1% per annum with quarterly compounding, a ₹2 Lakhs Fixed Deposit earns ₹14,583 interest in 1 year, reaching a total maturity value of ₹2.15 L.

How much interest does a senior citizen get on a 2 Lakh FD?

Senior citizens receive an additional 0.50% interest rate (7.6% per annum), yielding approximately ₹15,200 annual interest on a ₹2 Lakhs deposit.

Is TDS deducted on 2 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

2 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 ₹2 Lakhs deposit.

1-Yr Maturity Value₹2.15 L(at 7.1% p.a.)

Deposit Amount

₹2 Lakhs

Principal deposit

1-Yr Interest Earned

₹14,583

At 7.1% interest

3-Yr Maturity

₹2.47 L

+₹47,015 interest

Senior Citizen 1-Yr

₹2.16 L

At 7.6% rate

Key Takeaways for a ₹2 Lakhs Fixed Deposit

For a ₹2 Lakhs Fixed Deposit at 7.1% interest rate with quarterly compounding, you earn ₹14,583 interest in 1 year, reaching a maturity value of ₹2,14,583.
Over 5 years, a ₹2 Lakhs FD generates ₹84,349 total interest, with maturity value growing to ₹2,84,349.
Senior citizens receive an additional 0.50% interest bonus (7.6% rate), earning ₹15,639 in 1 year.

Customize 2 Lakh Fixed Deposit Calculations

Fixed Deposit (FD) Calculator 2026

Calculate quarterly compounded bank FD interest earnings, cumulative maturity amount, and TDS deductions

FD Deposit Amount

₹

Quick Presets:

₹1,000₹1.00 Cr

FD Annual Interest Rate (%)

3%12%

Time period

Yrs

1 Yr10 Yrs

Your money becomes

1.4×

of what you put in over 5 years.

Final value₹1.41 L

Invested vs Interest

Total invested

₹1.00 L

Interest earned

₹41,478

Interest is 29.3% of final value

Year-by-year breakdown

Year	Total contributed	Interest earned	Value
1	₹1.00 L	₹7,186	₹1.07 L
2	₹1.00 L	₹7,702	₹1.15 L
3	₹1.00 L	₹8,256	₹1.23 L
4	₹1.00 L	₹8,849	₹1.32 L
5	₹1.00 L	₹9,485	₹1.41 L

Growth over time

The gap between the two lines is the interest earned — and it widens every year.

Fixed Deposit (FD) Calculator FAQs

Most Indian commercial banks compound fixed deposit interest on a quarterly basis (4 times a year) according to RBI guidelines, using the formula: A = P × (1 + r/4)^(4n).

💻

Free Developer REST API AvailableBuilding a fintech app or blog? Integrate our free, open-CORS JSON REST APIs for high performance calculations.

View API Docs →

Smart Scheme Cross-Linking Engine