The interest you earn from your investment determines whether it is a good investment that serves your needs. The best part about investing in fixed deposits is that you can benefit from assured payouts at a fixed time. 


FDs offer interest in two ways, either at periodic intervals or at maturity. The interest you earn depends on your issuer and varies depending on numerous factors. If you are wondering if ₹3 interest for a ₹1 Lakh FD is good, you can use an FD calculator or a few formulae to decide. 


Read on to learn how to calculate ₹3 interest for a ₹1 Lakh FD and make informed investment decisions.

Formulae To Calculate FD interest

The method of calculating ₹3 interest for 1 Lakh per month or year in an FD is the same as that of ₹2 interest or ₹1 interest. Here are a few examples outlining the interest calculation for simple and compound interest methods.

Calculation Method



‘₹3 interest for ₹1 Lakh per month’ Method 

With ₹3 interest on ₹100, the annual interest rate would be 3 x 12 = 36%

For an FD investment of ₹1 Lakh for monthly payouts at ₹3 interest, your interest rate would be 36%.

Monthly interest: 1,00,000*3/100 = ₹3000

Simple Interest Method

I = p × r × t


I = Interest amount

p = Principal amount

r = Interest rate

t = Tenor


To calculate the ₹3 interest for 1 Lakh for 1 year, the formula is: 

I = 1,00,000 x 36/100 x 1

Here, 36 is the annual interest rate (12 x 3), and 1 is the tenor (1 year). 


Interest value will be ₹36,000 yearly or ₹3,000 monthly (36,000/12). 


Compound Interest Method

I = [P (1 + r/n) ^nt] – P


I = Interest value

P = Principal amount

r = Interest rate

n = Number of compound periods

t = Tenor


To calculate the ₹3 interest for ₹1 Lakh for 1 year with annual compounding, the formula is: 

I = [1,00,000 (1+36/100/1)^1x1] – 1,00,000

Monthly payout: 36,000/12= ₹3,000 

₹3 Interest for ₹1 Lakh Per Month

As illustrated above, the ₹3 interest ₹1 Lakh per month in an FD would result in earnings of ₹3,000. However, it is crucial to remember that this may vary depending on the issuer you choose and other factors, including your investment terms. 


As such, you can calculate the ₹3 interest for ₹1 Lakh for various issuers and compare the earnings to choose the best option. While you can do this manually with the above formulas, the process can be tedious and time-consuming. 


You also run the risk of making errors, which can result in ill-informed investment decisions, potentially harming your financial growth. A simple alternative to this is the online FD calculator available on Bajaj Markets. 


It is a simple tool offering accurate estimates in just a few clicks. To use this calculator, you need only your investment terms. Once you enter these details, the estimates are displayed instantly. That’s not all. 

You can also easily invest in an FD from top issuers on Bajaj Markets. With a 100% online investment process, you can book your FD anytime and from anywhere.

FAQs on How to Calculate ₹3 Interest for ₹1 Lakh

What is ₹3 interest for ₹1 Lakh FD per month?

In simple terms, ₹3 interest for a ₹1 Lakh FD means that you earn ₹3 on every ₹100. This means that the interest rate is 3% per month. Depending on the payout and formula, the actual interest earned will vary. You can use an FD calculator to get accurate estimates and invest accordingly.

What is the formula for ₹3 interest for a ₹1 Lakh FD?

There are two formulas to calculate interest earned on your FD. The first one is simple interest: I = p × r × t. The second is compound interest: I = [P (1 + r/n)nt] - P. 


However, iInstead of manual calculations, you can use an FD calculator to get quick and accurate results.

What are fixed deposit interest calculators?

Fixed deposit calculators are online tools designed to give you an estimate of your interest earnings based on the investment terms you enter. You can use these estimates to adjust your investment terms accordingly and ensure that you get the desired returns. These calculators are available online on most issuers’ websites and are easy to use

Is ₹3 interest for a ₹1 Lakh FD good?

Whether an interest rate is ideal depends on the returns you earn from it and the returns you want. For example, ₹3 interest on ₹1 Lakh per month means your interest earnings would be around ₹3,000 per month or ₹36,000 yearly.

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