₹5 lakh Fixed Deposit Calculator — Maturity Value
Calculate maturity value of ₹5 lakh fixed deposit at 7% over 5 years — ₹7,07,389. Compare rates from SBI, HDFC, ICICI, Post Office.
Parking ₹5 lakh in a fixed deposit for 5 years at around 7% per annum gives you a predictable maturity value, but bear in mind that FD interest is fully taxable at your slab rate — so the real post-tax, post-inflation return is often close to zero for investors in higher brackets. At 7% per annum with quarterly compounding, a ₹5 lakh fixed deposit held for 5 years matures to approximately ₹7,07,389 — an interest component of ₹2,07,389 that is fully taxable at your income-tax slab rate. Senior citizens typically get an extra 0.25–0.75% over card rates, and booking a tax-saving FD (5-year lock-in) additionally fetches Section 80C benefit on the deposit amount up to ₹1.5 lakh. For a ₹5 lakh deposit, splitting across two banks keeps you fully under the ₹5 lakh per-bank DICGC insurance cover — a small but meaningful safety measure. The calculator below is pre-filled at ₹5 lakh, 7%, and 5 years — adjust compounding frequency to compare quarterly vs monthly accrual.
How much will a ₹5 lakh FD earn in 5 years?
At 7% with quarterly compounding, a ₹5 lakh fixed deposit matures to approximately ₹7,07,389 after 5 years, earning ₹2,07,389 in interest. Held for 10 years at the same rate, it grows to ₹10,00,799 — showing how compounding is modest but steady.
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Maturity at Different Rates and Tenures
Maturity value at different rates and tenures for a ₹5 lakh FD (quarterly compounding)
| Rate ↓ / Tenure → | 1 yrs | 2 yrs | 3 yrs | 5 yrs | 10 yrs |
|---|---|---|---|---|---|
| 6% | ₹5,30,682 | ₹5,63,246 | ₹5,97,809 | ₹6,73,428 | ₹9,07,009 |
| 6.5% | ₹5,33,301 | ₹5,68,819 | ₹6,06,704 | ₹6,90,210 | ₹9,52,779 |
| 7% | ₹5,35,930 | ₹5,74,441 | ₹6,15,720 | ₹7,07,389 | ₹10,00,799 |
| 7.5% | ₹5,38,568 | ₹5,80,111 | ₹6,24,858 | ₹7,24,974 | ₹10,51,175 |
| 8% | ₹5,41,216 | ₹5,85,830 | ₹6,34,121 | ₹7,42,974 | ₹11,04,020 |
Understanding Your Investment Returns
This calculator projects your returns using compound interest, where your earnings generate their own earnings over time. The power of compounding means that even small regular investments can grow into substantial wealth over long periods. For example, investing just Rs 5,000 per month at 12% expected returns for 25 years can grow to over Rs 1 crore — of which only Rs 15 lakh is your own money and Rs 85 lakh is compounding returns. The key factors that determine your final corpus are: the amount invested, the rate of return, the duration of investment, and the frequency of compounding.
Important Considerations
Past returns do not guarantee future performance, especially for market-linked instruments like mutual funds and equities. The returns shown are estimates based on the rate you enter. Equity investments carry market risk but have historically delivered 12-15% CAGR over 15+ year periods in India. Fixed income options like PPF (7.1%) and FD (6-7.5%) offer lower but more predictable returns. Diversifying across asset classes — equity, debt, gold, and real estate — reduces overall portfolio risk while optimizing returns for your risk tolerance.
Key Information
| Parameter | Details |
|---|---|
| FD Amount | ₹5 lakh |
| Interest Rate | 7% p.a. (qtrly) |
| Maturity (5 yrs) | ₹7,07,389 |
| Interest Earned | ₹2,07,389 |
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Use Calculator NowFrequently Asked Questions
How much will a ₹5 lakh FD earn in 5 years?
At 7% with quarterly compounding, a ₹5 lakh fixed deposit matures to approximately ₹7,07,389 after 5 years, earning ₹2,07,389 in interest. Held for 10 years at the same rate, it grows to ₹10,00,799 — showing how compounding is modest but steady.
Is a ₹5 lakh FD tax-free?
No. FD interest is fully taxable at your income-tax slab rate. On a ₹5 lakh FD earning ₹2,07,389 over 5 years, a 30%-bracket investor would pay about ₹62,217 in tax — leaving only ₹1,45,172 post-tax. Tax-saving (5-year lock-in) FDs additionally qualify for Section 80C deduction on the principal up to ₹1.5 lakh.
Is a ₹5 lakh FD safer than a mutual fund?
FDs up to ₹5 lakh per bank are insured by DICGC, so a ₹5 lakh deposit at a single bank exceeds this cap. Splitting across 2–3 banks keeps the full amount covered. Mutual funds are subject to market risk but have no principal-loss cap — the trade-off is higher expected return at higher volatility.
Which bank offers the best rate on a ₹5 lakh FD?
Senior-citizen FDs typically fetch 25–75 bps extra. Among banks, small-finance banks (Suryoday, Unity, Jana) often pay 100–200 bps above majors for a ₹5 lakh FD, but stay within the ₹5 lakh DICGC insurance cap per bank. Corporate FDs (Bajaj, Shriram) pay even higher rates but carry credit risk and no deposit insurance.
Can I break a ₹5 lakh FD before maturity?
Yes — premature withdrawal is allowed but attracts a penalty of typically 0.5–1% below the applicable rate for the actual holding period. On a ₹5 lakh FD broken after 3 years (instead of 5), you might receive ₹5,97,809 instead of the original full maturity — factor this in before locking in long tenures.
What is compound interest and why does it matter?
Compound interest means you earn interest on your interest, not just your principal. Over long periods, this creates exponential growth — even small regular investments can grow into substantial wealth over 15-25 years.
Is SIP better than lumpsum investment?
SIP invests a fixed amount monthly, averaging out market volatility through rupee cost averaging. Lumpsum works better when markets are low. For most investors, SIP builds discipline and removes the need to time the market.
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Last updated: March 2026