Fixed deposit of Rs 3 Lakh at standard bank FD rates with quarterly compounding. Results shown for 6% to 8% per year over 1 to 10 years.
| Rate | 1 yr | 2 yr | 3 yr | 5 yr | 10 yr |
|---|---|---|---|---|---|
| 6% | ₹3,18,409 | ₹3,37,948 | ₹3,58,685 | ₹4,04,057 | ₹5,44,206 |
| 6.5% | ₹3,19,980 | ₹3,41,292 | ₹3,64,022 | ₹4,14,126 | ₹5,71,668 |
| 7% | ₹3,21,558 | ₹3,44,665 | ₹3,69,432 | ₹4,24,433 | ₹6,00,479 |
| 7.5% | ₹3,23,141 | ₹3,48,067 | ₹3,74,915 | ₹4,34,984 | ₹6,30,705 |
| 8% | ₹3,24,730 | ₹3,51,498 | ₹3,80,473 | ₹4,45,784 | ₹6,62,412 |
Quarterly compounding. Interest taxed at your income slab rate.
Compounding frequency
Maturity value
₹1,41,478
after 5 years
Adjust the amount, rate and tenure to see your exact numbers. Use our main FD calculator for more options including monthly and yearly compounding.
A fixed deposit of Rs 3 Lakh at a typical Indian bank earning 7% per annum with quarterly compounding grows to ₹4,24,433 in 5 years and ₹6,00,479 in 10 years. The interest earned at 7% over 5 years is ₹1,24,433. Compare rates across banks to maximise your return. Small differences in rate compound to meaningful amounts over longer tenures. Remember that FD interest is fully taxable at your income slab rate.
At 7% per annum with quarterly compounding, a Rs 3 Lakh fixed deposit grows to ₹4,24,433 in 5 years, of which ₹1,24,433 is interest. Left for 10 years the same deposit reaches ₹6,00,479. The rate your bank actually offers for that tenure decides the exact figure, so check its current rate card before booking.
About ₹21,558 at 7% per annum with quarterly compounding, taking the deposit to ₹3,21,558 at maturity. At 6% the one-year interest on Rs 3 Lakh is ₹18,409 and at 8% it is ₹24,730, so the rate you lock matters even over a single year.
Yes, fully. FD interest is added to your total income and taxed at your income slab rate; there is no special lower rate for it and no separate exemption. On a Rs 3 Lakh deposit at 7%, the ₹21,558 of interest earned in year one is taxable income for that year, so a depositor in the 30% slab keeps far less of it than one in the 5% slab. Interest is generally taxed as it accrues each year, not only in the year the deposit matures, even on a cumulative FD that pays out at the end.
A bank deducts TDS once the interest it pays you in a financial year crosses the threshold in the Income Tax Act, which this page uses as ₹40,000 for most depositors and ₹50,000 for senior citizens. Interest of ₹21,558 on a Rs 3 Lakh deposit at 7% is below the general threshold on its own, but every deposit you hold at the same bank is counted together. These limits have been revised in recent budgets, so confirm the figure that applies to you with your bank or on the Income Tax Department website. TDS is not an extra tax: it is credited against your final liability when you file your return.
Almost always yes, but it costs you twice. The bank normally re-prices the deposit to the rate applicable to the period it actually ran rather than the rate you booked, and most banks deduct a further penalty on top of that. The size of the effect is visible in the table above: Rs 3 Lakh held the full 5 years at 7% earns ₹1,24,433, while the same money pulled out after one year earns only ₹21,558 before any penalty is applied. Penalty rules differ by bank and by product, so read the terms before you lock the money in.
Most Indian banks add a small extra rate for depositors above 60, and several run special senior citizen schemes on selected tenures. The effect on Rs 3 Lakh is easy to read off this page: at 7% for 5 years the maturity is ₹4,24,433, while at 7.5% it is ₹4,34,984, a difference of ₹10,551 on the same deposit. The exact addition varies by bank and by tenure, so compare senior citizen rate cards rather than assuming a fixed uplift.
More than most people expect once the tenure is long. On Rs 3 Lakh held for 5 years, 6% matures at ₹4,04,057 and 8% at ₹4,45,784, a gap of ₹41,728 for the same money and the same lock-in. Comparing rate cards across two or three banks is usually the most valuable few minutes you can spend on a fixed deposit.
Bank deposits in India are covered by DICGC insurance up to ₹5,00,000 per depositor per bank, counting principal and interest together across every account you hold at that bank. A Rs 3 Lakh deposit sits inside that limit, though it is the total of everything you hold at the bank that counts, not this deposit alone. The cover amount is set by the DICGC, so verify the current limit on its website before relying on it.
The one that matches when you need the money, not the one with the largest number in the table. Locking Rs 3 Lakh for 10 years at 7% produces the biggest figure here (₹6,00,479), but the money is then tied up and any early exit is penalised. A common middle path is laddering: split the Rs 3 Lakh across the 1, 2, 3, 5 and 10 year tenures shown above so a part of it matures regularly and can be reinvested at whatever rates apply then.
An FD suits money you cannot afford to lose and expect to need on a known date, because the return is contractual and the capital is not exposed to markets. The trade-off is tax and inflation: the ₹1,24,433 of interest on Rs 3 Lakh over 5 years at 7% is taxed at your slab rate, which cuts the post-tax return, and rising prices erode what is left. Longer goals are usually served by pairing an FD with market-linked options rather than picking one. This is general information, not a recommendation for your circumstances.