Monthly Interest for 1 Lakh Fixed Deposit

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.

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.

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. 

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. You can use an online FD compound interest calculator to get a rough idea about the returns that you will receive on the invested amount.

Check Monthly Interest Rate on your Fixed Deposits

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