FD of ₹5 Lakh for 3 Years at 6.5% Interest Rate

Maturity Amount

₹6,06,704

Interest Earned

₹1,06,704

Effective Yield

6.66%

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

18% Interest

Principal Deposited

Your initial investment

₹5,00,000

82.4%

Interest Earned

Quarterly compounded returns

₹1,06,704

17.6%

Maturity Amount

Total value at end of tenure

₹6,06,704

100%

82% Principal 18% Interest

Insights

Total Returns

+21.3%

Your ₹5,00,000 grows to ₹6,06,704 in 3 years

Effective Annual Yield

6.660%

Nominal rate is 6.5% but quarterly compounding gives you 6.660% effective yield

Extend by 1 Year

+₹40,407

Locking for 4 years instead of 3 earns you ₹40,407 extra interest

TDS Implication

No TDS

Yearly interest ₹35,568 is below the ₹40,000 TDS threshold. No tax deducted at source.

Monthly vs Quarterly Compounding

+₹632 more

Monthly compounding gives ₹632 extra over quarterly. Ask your bank if monthly compounding FDs are available.

About This FD Calculation

A Fixed Deposit of ₹5 Lakh at 6.5% per annum with quarterly compounding matures to ₹6,06,704 after 3 years, earning interest of ₹1,06,704. The effective annual yield of 6.660% exceeds the nominal 6.5% 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 7.00%. As of 2025, major banks offer comparable 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

+21.3%

Year Opening Balance Interest Earned Closing Balance
Year 1 ₹5,00,000 +₹33,301 ₹5,33,301
Year 2 ₹5,33,301 +₹35,519 ₹5,68,819
Year 3 ₹5,68,819 +₹37,884 ₹6,06,704

Frequently Asked Questions

A Fixed Deposit of ₹5 Lakh for 3 years at 6.5% per annum (compounded quarterly) matures to ₹6,06,704. Total interest earned = ₹1,06,704, which is a 21.3% return on your principal. Effective annual yield after quarterly compounding = 6.660%.
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 ₹35,568 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 ₹5.00 L FD Today

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

Matures to

₹6.07 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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