₹50,000 Fixed Deposits for 1, 3, and 5 Years

Interest on ₹50,000 Fixed Deposits for 1, 3, and 5 Years

Interest earned on a ₹50,000 fixed deposit varies by tenure and bank, with different rates offered for 1, 3, and 5 years. Below is the detailed rate table for different tenures:

₹50,000 FD for 1 Year Tenure

The interest rate on a ₹50,000 FD for 1 year varies across banks and NBFCs. Based on the latest rates, general citizens can earn 6.25% to 7.25% p.a., while senior citizens can earn 6.75% to 7.85% p.a. Senior citizen FD rates are generally receive 0.25% to 1.25% higher interest rates than non-senior citizens, resulting in higher monthly interest payouts.

*FD interest rates as of July 2026.

₹50,000 FD for 1 Year in SBI (State Bank of India)

State Bank of India is a noteworthy bank to open an account of ₹50,000 FD for 1 year. One may obtain the following SBI FD interest rate for regular and senior citizens:

*These rates apply to domestic term deposits below ₹3 crores. Interest rates w.e.f 15 December 2025.

₹50,000 FD for 3 Years

A ₹50,000 FD can help meet both short- and long-term financial goals. A 3-year FD is often suitable for medium-term goals, while 5 to 10-year FDs may be considered for long-term goals. Current 3-year FD rates range from 6.40% to 8.00% p.a. for general citizens and 6.85% to 8.30% p.a. for senior citizens, depending on the bank or NBFC.

In the following table, let us discuss the interest rate provided by banks for a 3-year tenure:

*Interest rates as of July 2026.

₹50,000 FD for 3 Years in SBI

A fixed deposit (FD) of ₹50,000 for 3 years in SBI allows you to earn returns at the applicable FD interest rates. The following table shows the interest earned on investing ₹50,000 for 3 years in SBI:

*FD Interest rates w.e.f 15 December 2025.

₹50,000 FD for 5 Year Tenure

The table below compares the latest FD interest rates and estimated monthly interest payouts on a ₹50,000 fixed deposit across leading banks and NBFCs:

*Interest rates as of July 2026.

₹50,000 FD for 5 Years in SBI

You may consider depositing ₹50,000 FD for 5 years in SBI for long-term planning. The SBI offers the following interest rates on a ₹50,000 5 years FD:

*FD Interest rates w.e.f 15 December 2025.

How to Calculate Interest on a ₹50,000 Fixed Deposit

You can use an online FD calculator to estimate the interest earned and maturity amount on a ₹50,000 fixed deposit. Alternatively, you can calculate the expected returns manually using the applicable interest rate.

Follow these steps:

• Calculate the total interest using the interest formula applicable to your FD (simple or compound interest, depending on the bank or NBFC).
• If your FD offers monthly interest payouts, divide the annual interest by 12 to estimate the monthly payout.

Example Calculation

Assume you invest ₹50,000 in a fixed deposit at an interest rate of 7.00% p.a. for 5 years (60 months).

Monthly Interest Earned

Monthly Interest = Principal × Interest Rate ÷ 12

= ₹50,000 × 7.00% ÷ 12

= ₹50,000 × 0.07 ÷ 12

= ₹291.67

The estimated monthly interest payout is ₹291.67.

Total Interest Earned Over 5 Years

Total Interest = Monthly Interest × Number of Months

= ₹291.67 × 60

= ₹17,500

Thus, the investment earns approximately ₹17,500 in interest over the 5-year tenure, assuming a monthly interest payout.

Note: The actual interest earned and maturity amount may vary depending on the bank or NBFC's interest calculation method, compounding frequency, and prevailing FD interest rates.

Benefits of a ₹50,000 Fixed Deposit

The benefits of ₹50,000 FD are:

• Guaranteed and Safe Returns: A ₹50,000 FD offers assured, risk-free returns, making it ideal for conservative investors who want stable growth. With an FD calculator, you can easily calculate your estimated returns based on the tenure, interest rate, and compounding frequency.
• Flexible Tenure Options: You can choose from 1-year, 3-year, or 5-year tenures depending on your financial goals: short-term liquidity or long-term wealth building.
• Higher Interest Rates for Senior Citizens: Senior citizens earn 0.25%–1.00% higher interest, helping them increase returns on the same ₹50,000 investment.
• Option for Tax Benefits: A 5-year tax-saving FD allows you to claim deductions under Section 123 of the Income-tax Act, 2025 (earlier Section 80C), making it beneficial for long-term planners.
• Predictable Maturity Amount: With a fixed interest rate and compounding, you always know your exact maturity value in advance, supported by easy-to-use FD calculators.

Penalty for Withdrawing a ₹50,000 Fixed Deposit Before Maturity

Premature withdrawal means closing a fixed deposit before its maturity date. While most callable FDs allow early withdrawal, banks and NBFCs generally reduce the applicable interest rate and may levy a premature withdrawal penalty. As a result, the interest earned and the final maturity amount may be lower than initially expected.

Suppose you invest ₹50,000 in a 5-year fixed deposit at an interest rate of 7.00% p.a. If you decide to withdraw the deposit after 2 years, the bank may revise the applicable interest rate to 6.25% p.a. and charge a 0.50% premature withdrawal penalty. In such a case, the effective interest rate becomes 5.75% p.a., reducing the total interest earned compared to holding the FD until maturity.

Note: Premature withdrawal rules, revised interest rates, and penalty charges vary across banks and NBFCs. Always check the applicable terms before closing an FD early.

Taxation on Interest Earned from a ₹50,000 Fixed Deposit

Interest earned on a ₹50,000 fixed deposit is taxable as per your applicable income tax slab. Banks and NBFCs deduct Tax Deducted at Source (TDS) only when the total interest earned from eligible deposits with the same institution exceeds the applicable threshold during a financial year. A ₹50,000 FD by itself is often below the TDS threshold, but TDS depends on the total interest earned from eligible deposits with the same institution during the financial year. However, even if TDS is not deducted, the interest income must be reported while filing your income tax return, wherever applicable.

Key Takeaways

Investing ₹50,000 into a fixed deposit for 1, 3, or 5 years allows you to grow your savings over time. A shorter duration, such as 1 year, lets you access your funds sooner, while longer terms, like 3 or 5 years, tend to offer higher interest rates, which means greater returns. The best option depends on your financial goals and how soon you may need the money.