Exactly what a 3 Lakh fixed deposit pays you — monthly, yearly, and at maturity, before and after tax.
Rates and slabs are indicative, as of August 2026
Short answer: a 3 Lakh FD at 7.25% pays about ₹1,812 a month, or ₹21,750 a year, before tax. At three lakh the monthly interest starts covering a real bill — a phone plan, a utility, part of a rent payment. Still fully insured.
Rates vary by bank and tenure. Small finance banks typically pay the most, large public sector banks the least:
| Rate | Monthly Payout | Yearly Interest | 5-Year Maturity |
|---|---|---|---|
| 6.5% | ₹1,625 | ₹19,500 | ₹4.14 L |
| 7.0% | ₹1,750 | ₹21,000 | ₹4.24 L |
| 7.25% | ₹1,812 | ₹21,750 | ₹4.30 L |
| 7.5% | ₹1,875 | ₹22,500 | ₹4.35 L |
| 8.0% | ₹2,000 | ₹24,000 | ₹4.46 L |
Maturity figures assume the cumulative option with quarterly compounding, the standard for Indian FDs.
| Tenure | Maturity Amount | Interest Earned |
|---|---|---|
| 1 year | ₹3.22 L | ₹22,349 |
| 2 years | ₹3.46 L | ₹46,362 |
| 3 years | ₹3.72 L | ₹72,164 |
| 5 years | ₹4.30 L | ₹1.30 L |
| 10 years | ₹6.15 L | ₹3.15 L |
This is the part most FD comparisons skip. Interest is added to your income and taxed at your slab — there is no special treatment:
| Your Tax Slab | Tax on Interest | Post-Tax Interest | Effective Return |
|---|---|---|---|
| No tax (income under ₹12L) | ₹0 | ₹21,750 | 7.25% |
| 5% slab | ₹1,088 | ₹20,662 | 6.89% |
| 20% slab | ₹4,350 | ₹17,400 | 5.80% |
| 30% slab | ₹6,525 | ₹15,225 | 5.07% |
If you are in the 30% bracket, a 7.25% FD is really a 5.07% investment. With inflation running around 5–6%, that is close to zero real return — your money is safe in nominal terms and slowly shrinking in purchasing power.
FDs make sense for money you will genuinely need within one to three years, for an emergency fund that must not fluctuate, and for retirees who need predictable income and cannot tolerate capital swings. They are also the right answer for anyone in a low or zero tax bracket, where the tax drag disappears.
They are the wrong answer for long-term wealth building in a high tax bracket, where the combination of taxable interest and inflation quietly erodes real value year after year.
A 3 Lakh fixed deposit at 7.25% pays approximately ₹1,812 per month under a non-cumulative (monthly payout) option, which is ₹21,750 per year before tax.
Yes. FD interest is fully taxable at your income slab rate and is added to your total income. Banks deduct 10% TDS once interest crosses ₹40,000 in a year (₹50,000 for senior citizens), but the final liability depends on your slab — you may owe more at filing.
At 7.25% with quarterly compounding, a 3 Lakh cumulative FD matures at approximately ₹4.30 L after 5 years — a gain of ₹1.30 L before tax.
Deposits up to ₹5 lakh per bank[src] per depositor are insured by DICGC, covering both principal and interest. Your full amount is within that limit.
Related: FD Calculator · RD Calculator · ELSS vs PPF vs FD · SCSS for Seniors · All FD Amounts
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Written and checked by the PaisaSamajh editorial desk · Last reviewed: 24 August 2026 · How we check this →
Compare with: 2 Lakh FD Interest · 5 Lakh FD Interest