Monthly Interest on a ₹3 Lakh Fixed Deposit

With FDs, you can opt to receive your interest earnings every month, and this could be a wise move for many investors. For instance, on a  tenure of 5 years and 10% p.a. interest rate, the monthly interest on a ₹3 Lakh fixed deposit will be ₹2,500 with a total interest earning approx. ₹1.83 Lakhs. 

 

Likewise, choosing a tenure of 4 years for the same FD amount at 10% p.a. will generate a monthly interest payout of ₹2500, but yielding a total interest of ₹1.39 Lakhs.

 

In most cases, the tenure is the deciding factor, as longer investments generally lead to better returns. You could use the FD interest calculator to get an idea of the potential returns on your FD investment.

Refer to the table below to see how for 5 years, the ₹3 Lakh FD interest per month varies depending on the interest rate. 

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

The returns you can earn hinge on the FD rates offered by different financial institutions. The table below lists the monthly interest on a ₹3 Lakh FD for 5 years, for 2024.

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

This table outlines the maturity amounts for a ₹3 Lakh FD interest for 1 year at an interest rate of 7% p.a., with a breakdown for different tenures:

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

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

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

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.

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.

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

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.