FD of ₹2 Lakh for 3 Years at 8% Interest Rate

Maturity Amount

₹2,53,648

Interest Earned

₹53,648

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

₹2,00,000

78.8%

Interest Earned

Quarterly compounded returns

₹53,648

21.2%

Maturity Amount

Total value at end of tenure

₹2,53,648

100%

79% Principal 21% Interest

Insights

Total Returns

+26.8%

Your ₹2,00,000 grows to ₹2,53,648 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

+₹20,909

Locking for 4 years instead of 3 earns you ₹20,909 extra interest

TDS Implication

No TDS

Yearly interest ₹17,883 is below the ₹40,000 TDS threshold. No tax deducted at source.

Monthly vs Quarterly Compounding

+₹399 more

Monthly compounding gives ₹399 extra over quarterly. Ask your bank if monthly compounding FDs are available.

About This FD Calculation

A Fixed Deposit of ₹2 Lakh at 8% per annum with quarterly compounding matures to ₹2,53,648 after 3 years, earning interest of ₹53,648. 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 ₹2,00,000 +₹16,486 ₹2,16,486
Year 2 ₹2,16,486 +₹17,845 ₹2,34,332
Year 3 ₹2,34,332 +₹19,316 ₹2,53,648

Frequently Asked Questions

A Fixed Deposit of ₹2 Lakh for 3 years at 8% per annum (compounded quarterly) matures to ₹2,53,648. Total interest earned = ₹53,648, 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.
Your estimated yearly interest of ₹17,883 is below ₹40,000, so no TDS applies. However, the interest is still taxable as per your income slab — you must declare it under "Income from Other Sources" in your ITR.
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 ₹2.00 L FD Today

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

Matures to

₹2.54 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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