FD of ₹10 Lakh for 3 Years at 8% Interest Rate

Maturity Amount

₹12,68,242

Interest Earned

₹2,68,242

Effective Yield

8.24%

FD Calculator

Calculate Fixed Deposit maturity amount with quarterly compounding

₹
₹1,000 ₹10 Crore
Years
1 Year 10 Years
%
1% 15%

Most Indian banks compound quarterly

Maturity Amount

₹0

after 3 years

Principal

₹0

Interest Earned

₹0

Effective Annual Yield

0%

after quarterly compounding

Principal Interest
80% 20%

Maturity Breakdown

21% Interest

Principal Deposited

Your initial investment

₹10,00,000

78.8%

Interest Earned

Quarterly compounded returns

₹2,68,242

21.2%

Maturity Amount

Total value at end of tenure

₹12,68,242

100%

79% Principal 21% Interest

Insights

Total Returns

+26.8%

Your ₹10,00,000 grows to ₹12,68,242 in 3 years

Effective Annual Yield

8.243%

Nominal rate is 8% but quarterly compounding gives you 8.243% effective yield

Extend by 1 Year

+₹1,04,544

Locking for 4 years instead of 3 earns you ₹1,04,544 extra interest

TDS Implication

-₹26,824 TDS

Interest >₹40K/yr attracts 10% TDS. Post-tax maturity ≈ ₹12,41,418. Submit Form 15G/15H if not taxable.

Monthly vs Quarterly Compounding

+₹1,995 more

Monthly compounding gives ₹1,995 extra over quarterly. Ask your bank if monthly compounding FDs are available.

About This FD Calculation

A Fixed Deposit of ₹10 Lakh at 8% per annum with quarterly compounding matures to ₹12,68,242 after 3 years, earning interest of ₹2,68,242. The effective annual yield of 8.243% exceeds the nominal 8% rate because interest is compounded four times per year rather than once. As TDS of 10% applies to interest above ₹40,000/year (₹50,000 for senior citizens), submit Form 15G/15H if total income is below the taxable limit. Senior citizens qualify for an additional 0.25–0.5% interest, bringing the effective rate to 8.50%. As of 2025, major banks offer competitive rates — SBI at up to 7.10%, HDFC at 7.25%, and small finance banks at up to 9% for similar tenures. A 5-year FD additionally qualifies for ₹1.5 lakh tax deduction under Section 80C, though premature withdrawal forfeits this benefit.

Year-by-Year Growth

How your FD compounds over each year

Total Return

+26.8%

Year Opening Balance Interest Earned Closing Balance
Year 1 ₹10,00,000 +₹82,432 ₹10,82,432
Year 2 ₹10,82,432 +₹89,227 ₹11,71,659
Year 3 ₹11,71,659 +₹96,582 ₹12,68,242

Frequently Asked Questions

A Fixed Deposit of ₹10 Lakh for 3 years at 8% per annum (compounded quarterly) matures to ₹12,68,242. Total interest earned = ₹2,68,242, which is a 26.8% return on your principal. Effective annual yield after quarterly compounding = 8.243%.
Indian banks use the compound interest formula: A = P × (1 + r/n)^(n×t), where P = principal, r = annual rate (as decimal), n = compounding frequency (4 for quarterly), t = years. Most banks compound quarterly. Some offer monthly compounding, which gives slightly higher returns. Use our calculator above to compare frequencies.
Yes. Your estimated yearly interest of ₹89,414 exceeds ₹40,000 — the TDS threshold. Banks deduct 10% TDS (20% without PAN). To avoid TDS if your total income is below the taxable limit, submit Form 15G (below 60 years) or Form 15H (senior citizens) to your bank at the start of each financial year.
As of 2025, small finance banks like Unity, Suryoday, and ESAF offer 8–9% on 3-year FDs. Among major banks, SBI offers ~6.8%, HDFC ~7%, and ICICI ~7%. Senior citizens typically get 0.25–0.5% extra. Always check DICGC insurance coverage (₹5 lakh per depositor per bank) when choosing small finance banks.
Yes, FDs can be prematurely closed, but most banks charge a penalty of 0.5–1% on the applicable interest rate. For example, if your FD earns 7.5% but you break it early, the bank pays the rate for the actual period held minus the penalty. Some tax-saving FDs (5-year) have a 5-year lock-in and cannot be broken prematurely.
Cumulative FD: Interest compounds and is paid at maturity — ideal for wealth building. That's what this calculator shows. Non-cumulative FD: Interest is paid at regular intervals (monthly/quarterly/yearly) — ideal for generating regular income. The total interest earned is the same, but non-cumulative gives regular cash flow at the cost of compounding benefit.

Explore Variations

Book Your ₹10.00 L FD Today

Get up to 9%+ p.a. — compare FD rates from top banks

Matures to

₹12.68 L

SBI FD

Most trusted · DICGC insured

6.8%

Book FD →

HDFC Bank FD

Instant online booking

7.0%

Book FD →

Unity SFB

Highest rates · Small Finance

9.0%

Book FD →

Bajaj Finance

NBFC FD · AAA rated

8.1%

Book FD →

* Rates are indicative as of 2025. Actual rates vary by bank, tenure, and customer category. Senior citizens get 0.25–0.5% extra. FD investments up to ₹5 lakh are insured by DICGC.

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