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 |
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 |
7.90% |
₹636 |
₹1,46,254 |
|
7.75% |
₹618 |
₹1,45,240 |
|
8.00% |
₹625 |
₹1,46,933 |
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 |
7.30% |
₹731 |
₹1,43,892 |
SBI |
6.75% |
₹666 |
₹1,40,011 |
HDFC Bank |
7.50% |
₹755 |
₹1,45,329 |
Axis Bank |
7.00% |
₹696 |
₹1,41,762 |
IDFC Bank |
7.50% |
₹755 |
₹1,45,329 |
Bank of India |
6.50% |
₹638 |
₹1,38,281 |
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%.
There are a number of ways to reduce taxes. One can save income tax on a ₹ 1 Lakh Fixed Deposit in the following ways:
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.
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.
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.
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.
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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.
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.
Certainly, ₹1 Lakh fixed deposit is taxable based on your income slab. Banks will deduct TDS at 10% if the interest exceeds ₹40,000
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.
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.
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.
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.