FD Interest on ₹10 Lakh 2026 — Maturity & Monthly Payout at 7.25%
A fixed deposit of ₹10 Lakh at 7.25% per annum (quarterly compounding) for 5 years matures to approximately ₹14.32 L. The total interest earned is ₹4.32 L. If you opt for a monthly interest payout instead of cumulative, you would receive approximately ₹7,204 per month. Use the calculator below to check maturity for different rates and tenures.
Last updated: 24 May 2026, 10:00 AM IST
Maturity Amount
₹14.32 L
at 7.25% for 5 years (quarterly compounding)
₹10.00 L FD — Detailed Breakdown
Consider a small business owner in Chennai who deposits ₹10 Lakh in a bank FD at 7.25% per annum with quarterly compounding for 5 years. The maturity amount is ₹14.32 L, meaning the deposit earns ₹4.32 L in interest over the tenure. The effective annual rate with quarterly compounding is 7.45%, slightly higher than the nominal 7.25%. If this investor opts for a monthly interest payout (non-cumulative FD), they would receive approximately ₹7,204 per month as interest income. However, the cumulative option earns more overall due to compounding. On the tax front, TDS of 10% will be deducted since the annual interest (₹86,452/year) exceeds the ₹40,000 threshold. Senior citizens get a higher threshold of ₹50,000 and typically earn 0.25–0.50% more on FD rates. For amounts over ₹5 lakh, splitting across multiple banks can help stay below the TDS threshold per bank.
Data Sources
- RBI — Master Direction on Interest Rates (2026) — www.rbi.org.in
- Bank Websites — Latest FD Rates (May 2026) — www.rbi.org.in
- Income Tax Act — TDS on FD Interest (2025) — incometaxindia.gov.in
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Important: This calculator provides estimates based on the inputs and assumptions you provide. Results are mathematical projections, not financial advice or recommendations. Actual outcomes will vary based on market conditions, policy changes, individual circumstances, and factors not captured by this tool. Verify all figures independently and consult qualified professionals before making financial decisions.
Founding Partner, Tykhe Ventures · Founder, Kompella Technologies
Founding Partner at Tykhe Ventures ($20M AUM, early-stage investing) and Founder of Kompella Technologies, which provides fractional CTO/CPO services to funded startups. NISM XIX-C certified. Built RupayWise because the financial tools available in India were either oversimplified or designed to sell you a product — not help you decide.
Frequently Asked Questions
What is the interest on ₹10 Lakh FD for 5 years?
At 7.25% with quarterly compounding, a ₹10 Lakh FD for 5 years earns approximately ₹4.32 L in interest. The maturity value is ₹14.32 L.
How much monthly interest does a ₹10 Lakh FD give?
At 7.25%, a ₹10 Lakh FD gives approximately ₹7,204 per month if you choose the monthly interest payout option (non-cumulative).
Is TDS deducted on ₹10 Lakh FD interest?
TDS at 10% is deducted when annual FD interest exceeds ₹40,000 (₹50,000 for senior citizens). For ₹10 Lakh at 7.25%, annual interest is approximately ₹86,452. Submit Form 15G/15H if your total income is below the taxable limit.
Which bank gives the highest FD rate for ₹10 Lakh?
As of May 2026, small finance banks and select private banks (IDFC FIRST, IndusInd) offer 7.25–7.75% for regular depositors. Post Office TD offers 7.50%. SBI and HDFC offer 6.80–7.00%. Compare on our FD rates page.
Should I choose cumulative or non-cumulative FD for ₹10 Lakh?
Cumulative FD earns more due to compounding — ₹14.32 L vs approximately ₹13.63 L with simple interest payout. Choose non-cumulative only if you need regular income.
Compare Other FD Options
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Disclaimer
This calculator provides estimates based on the interest rates and tenure shown. Actual maturity may vary based on the bank's specific compounding method and any rate revisions during the tenure. Bank rates are sourced from public data and may not reflect the latest changes — always confirm with your bank before investing. TDS is deducted at source if applicable. This is not financial advice. RupayWise is not a deposit broker or financial advisor.