Monthly Interest Payout for a ₹3 Lakh Fixed Deposit

Deposit Amount

Interest Rate

Tenure

Months

Interest Payout

At Maturity
At Maturity
Monthly
Quaterly
Half Yearly
Yearly

Investment Amount

Interest Rate

Total Interest Amount

Total Payout (Principal + Interest)

Get Returns up to 9.40%* p.a.

A Fixed Deposit (FD) of ₹3 Lakhs could provide a steady monthly income, with payouts depending on the interest rate and tenure. Compare options from various banks and Non-banking Financial Companies (NBFCs) to maximise returns. Learn about the monthly interest payouts, tax implications, and premature withdrawal penalties to make informed investment decisions.

Monthly Interest on a Fixed Deposit of ₹3 Lakhs

Refer to the table below to see how the monthly interest for a fixed deposit of ₹3 Lakhs for 5 years varies depending on the interest rate. 

Deposit Amount

Interest Rate (p.a.)

Monthly Interest Payout

₹3 Lakhs

6.00%

₹1,500

₹3 Lakhs

6.50%

₹1,625

₹3 Lakhs

7.00%

₹1,750

₹3 Lakhs

7.50%

₹1,875

₹3 Lakhs

8.00%

₹2,000

₹3 Lakhs

8.50%

₹2,125

₹3 Lakhs

9.00%

₹2,250

₹3 Lakhs

9.50%

₹2,375

₹3 Lakhs

10.00%

₹2,500

Note: The monthly interest payouts mentioned above are indicative. Your actual returns will vary depending on the bank or NBFC's policies.

Interest on a ₹3 Lakh FD Offered by Banks and NBFCs

The returns you can earn hinge on the FD rates offered by different financial institutions. The table below lists the monthly interest for ₹3 Lakhs invested in FD, in banks and NBFCs for a tenure of 5 years.

Bank/NBFC/HFC

Non-senior Citizen (p.a.)

Monthly Interest Payout

Senior Citizen (p.a.)

Monthly Interest Payout

Bajaj Finance Ltd. 

7.81%

₹1,953

8.05%

₹2,013

PNB Housing Finance Ltd. 

7.35%

₹1,837

7.55%

₹1,887

Mahindra Finance Ltd.

7.55%

₹1,887

7.80%

₹1,950

LIC Housing Finance

7.50%

₹1,875

7.75%

₹1,937

Shriram Finance

8.47%

₹2,117

8.97%

₹2,242

ICICI Bank 

7.00%

₹1,750

7.50%

₹1,875

HDFC Bank 

7.20%

₹1,800

7.70%

₹1,925

IDFC First Bank 

7.00%

₹1,750

7.50%

₹1,875

Axis Bank 

7.00%

₹1,750

7.75%

₹1,875

IndusInd Bank 

7.25%

₹1,812

7.75%

₹1,937

YES Bank

7.25%

₹1,812

8.00%

₹2,000

Jana Small Finance Bank 

7.25%

₹1,812

7.75%

₹1,937

Kotak Mahindra Bank

6.20%

₹1,550

6.70%

₹1,675

SBI

6.50%

₹1,625

7.50%

₹1,875

AU Small Finance Bank

7.21%

₹1,802

7.70%

₹1,925

Ujjivan Small Finance Bank

7.20%

₹1,800

7.70%

₹1,925

Note: The above-mentioned rates are as of June 2024 and subject to change at the bank or NBFC's discretion.

Interest Payout on a ₹3 Lakh FD Based on Tenure

This table outlines the maturity amounts for a ₹3 Lakh fixed deposit at an interest rate of 7% p.a., with a breakdown for different tenures:

Tenure

Yearly Payout

1 Year (12 Months)

₹3,21,000

2 Years (24 Months)

₹3,43,470

3 Years (36 Months)

₹3,67,513

4 Years (48 Months)

₹3,93,239

5 Years (60 Months)

₹4,20,766

Note: The figures above are for illustration purposes only. Actual interest rates and payouts may vary across different banks and NBFCs.

TDS on ₹3 Lakh Fixed Deposit

To get an actual estimate of how much you will earn, carefully understand the tax implications of this investment instrument. Keep these regulations in mind:

  • Banks and NBFCs will deduct Tax Deducted at Source (TDS) at 10% if you earn over ₹40,000 as interest income in a year

  • For senior citizens, the exemption limit on FD interest for tax liability is ₹50,000 in a particular financial year

  • The financial institution will levy a TDS at 20% if you have not furnished your PAN details

How to Calculate Interest on an FD of ₹3 Lakhs

To get an estimate of your returns, utilise the calculator provided above. Follow these simple steps to compute interest per month on an FD of ₹3 Lakhs:

  1. Enter the investment amount, tenure, and interest rate

  2. Select the ‘Monthly’ option under the ‘Interest Payout’ section

  3. Check an estimate of total interest earnings and monthly payouts

Maturity Amount Calculation Example

Let’s say you invest ₹3 Lakhs in a fixed deposit at an interest rate of 7.00% p.a. for a tenure of 3 years (36 months). The monthly interest earned can be calculated as follows:

  • Monthly Interest = Principal × Interest Rate / 12

  • Monthly Interest = ₹3,00,000 × 7.00% / 12

  • Monthly Interest = ₹3,00,000 × 0.07 / 12

  • Monthly Interest = ₹21,000 / 12

  • Monthly Interest = ₹1,750

 

The monthly interest earned on a ₹3 lakh FD at 7.00% p.a. would be ₹1,750.

 

Interest Earned Upon Maturity

  • Total Interest = Monthly Interest × Number of Months

  • Total Interest = ₹1,750 × 36

  • Total Interest = ₹63,000

 

The total interest earned over the 3-year tenure would be ₹63,000, with a monthly payout of ₹1,750.

 

Note: Check the formula used by the bank or NBFC to get an accurate estimate. 

Penalty for Premature Withdrawal from a Fixed Deposit of ₹3 Lakhs

A premature withdrawal penalty is imposed by banks and NBFCs when you withdraw a fixed deposit before maturity. It usually involves a lower interest rate and sometimes a small fee, reducing your earnings. Penalties may vary, so it's important to check the terms before investing.

FD Premature Withdrawal Example

If you were to invest ₹3 Lakhs in a fixed deposit with a 2-year tenure at an interest rate of 7% p.a., but decided to withdraw prematurely after 1 year, the applicable interest rate for the 1-year period would drop to 6% p.a. After applying a 1% penalty for premature withdrawal, the final interest rate would be 5% p.a., leading to lower-than-expected returns.

Parameter

Details

Principal Amount Invested 

₹3,00,000

Maturity After 3 Year

₹3,43,470

Interest Rate at the Time of Booking

7.00% p.a.

Effective Interest Rate for 1 Year Tenure

6.00% p.a.

Premature Withdrawal Penalty Rate

1% p.a.

Final Interest Rate 

5.00% p.a.

Final Amount Payable

₹3,15,000

Note: The figures above are for illustration purposes only. The actual penalty charges may vary depending on the bank or NBFC’s policies. 

Disclaimer

The information provided by BFDL is related to the rates provided by Banks and Deposit taking NBFCs as available from public domain and under no circumstances is intended to be source of advice or recommendation of any financial investment advice or endorsement of any sort. BFDL disclaims any responsibility or liability regarding inaccuracies, omissions, mistakes etc. as well as offers and use of such information set out is entirely at the User’s own risk and User should exercise due care prior taking of any decision, on the basis of information mentioned hereinabove. Display of any intellectual property along with the related product information does not imply BFDL’s partnership with the owner of the intellectual property of such products and is solely for the purpose of information, unless otherwise provided by BFDL.

Frequently Asked Questions

How much tax will I have to pay on an FD of ₹3 Lakhs?

As per Section 194A of the Income Tax Act, 1961, annual interest exceeding ₹40,000 or ₹50,000 if you’re a senior citizen, is subject to 10% TDS.

What are the eligibility criteria to open an FD account?

To open an FD account, you generally need to meet the requirements set by the issuing bank or NBFC. This may include being an Indian citizen aged above 18 years.

What are the documents required to open an FD account?

To open an FD account, you need to provide your PAN card, KYC documents, proof of identity, and photographs to the issuing bank or NBFC.

How much monthly interest for a fixed deposit of ₹3 Lakhs can I earn?

The monthly interest earned on a fixed deposit depends on the interest rate and the chosen tenor. For example, if you invest in an FD of ₹3 Lakhs for 5 years at 7.15% p.a., you could earn ₹1,788 as monthly interest.

Is there a penalty for withdrawing the fixed deposit before maturity?

Yes, withdrawing your fixed deposit before maturity may attract penalties, depending on the terms and conditions set by the issuer. Generally, premature withdrawal entails a reduction in the interest rate earned on the deposit or a flat penalty.

What happens if I do not renew my FD of ₹3 Lakhs after maturity?

If you do not renew your fixed deposit after maturity, the issuer will credit the deposit amount and any accrued unpaid interest to your linked bank account. If you wish to continue with the deposit, you have the option to renew it for another term.

Can I add more money to my fixed deposit of ₹3 Lakhs during the tenor?

No, fixed deposits do not allow additional deposits once the account is opened. However, you can open a new fixed deposit account and deposit additional funds separately if you wish to invest further.

Is my fixed deposit amount of ₹3 Lakhs insured?

Yes, fixed deposits up to ₹5 Lakhs are insured under the Deposit Insurance and Credit Guarantee Corporation (DICGC) scheme in India. This is applicable for all bank issued FDs.

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