Earn interest up to 7.95% p.a. by investing in a Bajaj Finance Fixed Deposit | Rated CRISIL AAA/ STABLE and [ICRA]AAA(stable)

The monthly interest on a ₹1 Lakh FD ranges anywhere between 2.50% to 8.50% p.a. The table below provides an estimate of the monthly income you can stand to gain from monthly interest for ₹1 Lakh in a bank.

Fixed Deposit Amount

Interest Rate Per annum

Monthly Interest Earned 

(in ₹)

₹ 1 Lakh

2%

208.33

₹ 1 Lakh

3%

250

₹ 1 Lakh

3.5%

291.66

₹ 1 Lakh

4%

333.33

₹ 1 Lakh

4.5%

375

₹ 1 Lakh

5%

416.66

₹ 1 Lakh

5.5%

458.33

₹1 Lakh

6%

500

₹ 1 Lakh

6.5%

541.66

₹ 1 Lakh

7%

583.33

₹1 Lakh

7.5%

625

₹ 1 Lakh

8%

666.66

₹ 1 Lakh

8.5%

708.33

List of NBFC Fixed Deposit Interest Rates for ₹1 Lakh

The following table lists the interest rates NBFCs that specialise in providing fixed deposit accounts:

 

The interest rates shown below are for NBFC FDs with an investment tenor of 5 years.

NBFC

Interest Rates

Monthly Interest Amount (₹)

Maturity Amount

Bajaj Finance Ltd

7.16%

₹597

₹1,35,800

PNB Housing Finance

7.16%

₹597

₹1,35,800

Mahindra Finance

6.90%

₹575

₹1,34,500

Disclaimer: The aforementioned Bank standard FD interest rates (up to ₹1 Lakh) are valid as of 7th October, 2022, and may be subject to change as per bank announcements.

List of Banks Fixed Deposit Interest Rates for ₹1 Lakh

The interest rates shown below are for bank FDs with an investment tenor of 5 years. 

Bank

Interest Rates

Monthly Interest Amount (₹)

Maturity Amount

Punjab National Bank

5.65%

₹470

₹1,28,250

SBI

5.85%

₹488

₹1,29,250

HDFC Bank

6.00%

₹500

₹1,30,000

Axis Bank

6.10%

₹508

₹1,30,500

IDFC Bank

6.00%

₹500

₹1,30,000

Bank of India

5.75%

₹479

₹1,28,750

Disclaimer: The aforementioned Bank standard FD interest rates (up to ₹1 Lakh) are valid as of 1st March, 2022, and may be subject to change as per bank announcements.

TDS on ₹1 Lakh Fixed Deposit

While calculating TDS, it is to be noted that the monthly interest for a ₹1 Lakh fixed deposit is taxable as per the income slab under which one falls. If the monthly interest for ₹1 Lakh fixed deposit (including all the Fixed Deposits) is less than ₹40,000, then the bank would essentially not deduct any TDS. But, if the monthly interest for ₹1 Lakh fixed deposit exceeds ₹40,000 for regular citizens and ₹50,000 for senior citizens, then the bank would deduct a TDS at the rate of 10%. Also, it is advisable to have a PAN card as in the absence of a PAN card, the bank would charge TDS on the monthly interest for a ₹1 Lakh fixed deposit at the rate of 20%.

How to Save Tax on ₹1 Lakh Fixed Deposit Returns

There are a number of ways to reduce taxes. One can save income tax on a ₹ 1 Lakh Fixed Deposit in the following ways:

 

Form 15G/15H

You can submit the Form 15G declaration that states that you have no taxable income. The bank will then not deduct any TDS on the interest income earned. For senior citizens, the provision is available under Form 15H.

 

Distributing FD

You can also save on TDS if you split the deposit amount in separate banks in such a way that the interest income earned through any FD will not exceed the limit of ₹10,000.

 

Timing Your Fixed Deposit

Another way to save TDS on your Fixed Deposit is that you can time it well so that in any financial year, the interest will not exceed ₹10,000. For example, if you have a 12-month fixed deposit of ₹1 Lakh at 10.5%, you can start it in September. As the financial year closes on March 31, your interest will be split into two financial years, thus avoiding TDS.

 

Splitting Your Fixed Deposit

You can start one fixed deposit under your personal account and another one under the HUF account. Therefore, both will be treated as separate entities. So, if you are an investor with a HUF identity, you can split the Fixed Deposit under two heads

 

This sums up the key details about a ₹1 Lakh rupees fixed deposit interest per month and how it can benefit you in many ways. So, if you are planning to capitalise on a Fixed Deposit, you can certainly invest in ₹1 Lakh Fixed Deposit with a monthly payout option and thus generate an ongoing monthly income.

Check Monthly Interest Rate on your Fixed Deposits

Monthly interest on ₹5 Crores FD

Monthly interest on ₹50 Lakh FD

Monthly interest on ₹30 Lakh FD

Monthly interest on ₹20 Lakh FD

Monthly interest on ₹15 Lakhs FD

Monthly interest on ₹10 Lakh FD

Monthly interest on₹5 Lakhs FD

Monthly interest on ₹2 Lakh FD

Monthly interest on ₹1 Lakh FD

FAQs

  • ✔️How much interest will I get on ₹1 Lakh fixed deposit?

    The monthly interest for ₹1 Lakh fixed deposit earned will depend on the bank’s interest rate and there is no minimum or maximum limit to the monthly interest. 

  • ✔️Is there a minimum and maximum cap to the monthly interest for a ₹1 Lakh fixed deposit?

    No, there is no minimum or maximum cap to the monthly interest for 1 lakh fixed deposit as it depends on the bank’s interest rate.

  • ✔️Are ₹1 Lakh interest fixed deposits taxable?

    Certainly, ₹1 Lakh fixed deposit is taxable based on your income slab. Banks will deduct TDS at 10% if the interest exceeds ₹40,000

  • ✔️Are there any benefits for senior citizens for the monthly interest they will get on a ₹1 Lakh FD?

    Senior citizens can enjoy a couple of benefits on a₹ 1 Lakh fixed deposit interest per month. The TDS deduction for senior citizens is more than regular citizens. Also, if a senior citizen does not have a taxable income, they can submit Form 15H to enjoy a TDS exemption.

  • ✔️What are the documents required for a ₹1 Lakh fixed deposit?

    The documents required are identity proof such as passport, PAN card, Voter ID, Driving licence, any Government ID card or a Photo ration card. Additionally, address validation documents like the passport, telephone bill, electricity bill, bank statement with cheque, signature proof like the passport, PAN card or driving licence are needed. Senior citizens require an age proof document like the driving licence, PAN or voters card along with Form 15H whereas regular citizens do not need any age proof documents but require Form 15G.

  • ✔️What are the eligibility criteria for a ₹1 Lakh fixed deposit?

    The eligibility criteria for a ₹1 Lakh fixed deposit are the following:

    • The applicant must be above 18 years of age

    • Minors can have a Fixed Deposit but under the guardianship of a guardian

    • The applicant must essentially have a PAN card

    • Hindu Undivided family (HUF) must have a separate PAN card

    • The applicant must necessarily satisfy RBI mandated KYC guidelines like identity proof, address proof, and age proof.

  • ✔️How to calculate FD interest on ₹1 Lakh?

    You can use an online fixed deposit interest calculator to easily calculate the interest earned per month and your overall maturity amounts on Fixed deposits worth ₹1 Lakh. You just need to enter your initial principle i.e.₹ 1 Lakh, tenor or duration of the fixed deposit, and the interest rate charged to calculate the interest amount.

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