Fixed Deposits (FDs) are crucial financial instruments for several reasons. Firstly, they provide a safe and secure way to park surplus funds, offering a guaranteed return on investment. This stability makes them an ideal choice for individuals and investors seeking to preserve their capital. Secondly, FDs offer liquidity when needed, with various payout options and tenures available to suit your financial goals.

 

A monthly interest payout on Fixed Deposits provides a regular income stream for individuals seeking a steady cash flow such as retirees or those looking to supplement their monthly income.

 

Read on to learn more about the applicable interest rates across different banks and NBFCs and the monthly interest payout on a ₹1 Lakh fixed deposit.

Deposit Amount
Tenure
Months
Interest Rate
%
Interest Payout
Your Total Maturity Amount is
Your Total Maturity Amount is
Total Investment
Total Interest Earned

Monthly Interest Payout on ₹1 Lakh Fixed Deposit

The table below indicates the monthly interest payout on a ₹1 Lakh fixed deposit you could earn across different banks and NBFCs for a tenor of 5 years:

Bank/NBFC/HFC

Non-Senior Citizen (p.a.)

Monthly Interest Payout

Senior Citizen (p.a.)

Monthly Interest Payout

Bajaj Finance Ltd. 

8.05%

₹ 648

8.30%

₹ 692

PNB Housing Finance Ltd. 

7.65%

₹ 638

7.95%

₹ 663

Mahindra Finance Ltd. 

8.05%

₹ 648

8.30%

₹ 692

LIC Housing Finance

7.75%

₹ 646

8.00%

₹ 667

Shriram Finance

8.50%

₹ 708

9.00%

₹ 750

ICICI Bank 

7.00%

₹ 583

7.50%

₹ 625

HDFC Bank 

7.00%

₹ 583

7.50%

₹ 625

IDFC First Bank 

7.00%

₹ 583

7.50%

₹ 625

Axis Bank 

7.00%

₹ 583

7.75%

₹ 646

IndusInd Bank 

7.25%

₹ 604

8.00%

₹ 667

YES Bank 

7.25%

₹ 604

8.00%

₹ 667

Jana Small Finance Bank 

7.25%

₹ 604

7.75%

₹ 646

Kotak Mahindra Bank

6.20%

₹ 517

6.25%

₹ 521

SBI

6.50%

₹ 542

7.50%

₹ 625

AU Small Finance Bank

7.25%

₹ 604

7.75%

₹ 646

Ujjivan Small Finance Bank

7.20%

₹ 600

7.70%

₹ 642

*Disclaimer: The above-mentioned rates are effective as of 05 October 2023 and are subject to change as per the issuer’s discretion.

Monthly Interest for ₹1 Lakh in Fixed Deposit

The table below shows an estimate of the monthly interest payout you would receive on a ₹1 Lakh fixed deposit across different interest rates -

Deposit Amount

Interest Rate (p.a.)

Monthly Interest Payout

₹1 Lakh

3.00%

₹250

₹1 Lakh

3.50%

₹292

₹1 Lakh

4.00%

₹333

₹1 Lakh

4.50%

₹375

₹1 Lakh

5.00%

₹417

₹1 Lakh

5.50%

₹458

₹1 Lakh

6.00%

₹500

₹1 Lakh

6.50%

₹542

₹1 Lakh

7.00%

₹583

₹1 Lakh

7.50%

₹625

₹1 Lakh

8.00%

₹667

₹1 Lakh

8.50%

₹708

₹1 Lakh

9.00%

₹750

₹1 Lakh

9.50%

₹792

₹1 Lakh

10.00%

₹833

TDS on ₹1 Lakh Fixed Deposit

A crucial aspect to keep in mind is that earning monthly interest on ₹1 Lakh FD can be subject to taxation. This is as per the income bracket an individual falls under. For instance, if the monthly interest payout amount is under ₹40,000 on a ₹1 Lakh FD, then it will not be taxed. However if it exceeds this amount or ₹50,000 for senior citizens, then it will attract TDS of 10%. Furthermore, failing to have a PAN card will increase the applicable TDS to 20% on the monthly interest for ₹1 Lakh FDs. 

 

Now that you have a better understanding of the estimated monthly interest payout on a ₹1 Lakh FD, choose from your preferred issuer and get started with an FD today.

 

Additionally, you can make use of the FD interest calculator to determine your potential returns.

Disclaimer

The information provided by BFDL herein above is related to the Non-Partnered Banks/ NBFCs and is just for the purpose of information and under no circumstances the information provided hereinabove is intended to be source of advice or recommending any financial investment advice or endorsement of any sort.

The information including interest rates with regard to fixed deposit, provided on this website is gathered through publicly available sources over the internet and is considered as accurate and reliable to the best of our knowledge. BFDL disclaims any responsibility or liability regarding inaccuracies, omissions, mistakes etc. as well as offers by the Non-Partnered Banks. The use of information set out is entirely at the User’s own risk and User should exercise due care prior taking of any decision, on the basis of information mentioned hereinabove. You are advised to visit/ contact the respective Banks/ NBFCs to verify the information before making any investment or opening an account. Further, BFDL does not undertake any responsibility or liability to update this information. YOU ARE SOLELY RESPONSIBLE FOR ANY LIABILITY OR DAMAGE YOU INCUR THROUGH ACCESS TO OR USE OF THE SITE OR SUCH INFORMATION OR MATERIALS EXCEPT WHERE THE LAWS AND REGULATIONS OF A PARTICULAR JURISDICTION CONCERNING WARRANTIES CANNOT BE WAIVED. Additionally, display of any trademarks, tradenames, logo and other subject matters of intellectual property owners. Display of such Intellectual Property along with the related product information does not imply BFDL’s partnership with the owner of the Intellectual Property of such products. 

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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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