₹1 Lakh FD Interest for 1 Month

Earn a stable return by investing in a fixed deposit (FD) as it is a low-risk investment and a reliable way to safeguard your money. However, the FD return vary for the amount of ₹1 Lakh FD depending on the Interest rate offered by the bank or NBFC. One can opt for the monthly payout option for monthly interest earning or payout after 1 year or at maturity.

Choosing ₹1 Lakh FD with monthly payouts ensures a steady monthly income throughout the year. Go through the page to check ₹1 Lakh Fixed Deposit Interest for 1 Month. Besides, you can also check the yearly interest earnings.

Note: Monthly income FDs can be opened by Indian residents, sole proprietorship firms, partnership firms & companies, HUFs, associations, clubs, societies, and family trusts.

Monthly Interest Rate on ₹1 Lakh Fixed Deposit

As an example, the below table represents the monthly & yearly interest generated from a fixed deposit of ₹1 lakh, with interest rates varying from 4% to 9.50% per annum.

Interest Rate (p.a) Monthly Interest Earned Yearly Interest Earned
4% 338 4060
4.5% 381 4577
5% 425 5095
5.5% 468 5614
6% 510 6136

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*Note that the calculations are approximate values assuming quarterly compounding. Also, the returns depend on the bank’s current interest rates.

Why opting for a 1-year Fixed Deposit could be the most beneficial choice?
Typically, the interest rate for a 1-year tenure is higher compared to longer tenures, making it a potentially advantageous option. If necessary, the term deposit can be renewed periodically by checking the current interest rate for a specific term.

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Interest on ₹1 Lakh FD Offered by Banks & NBFCs

Check the interest earned as per the interest rates offered by the top banks & NBFCs. Check the interest earned as per the interest rates of Public Sector Banks, Private Sector Banks, Small Finance Bank & NBFCs.

Monthly Interest Rate on ₹1 Lakh FD By Public Sector Banks

Public Sector Banks Interest Rates Monthly Interest Earned Yearly Interest Earned
Punjab & Sind Bank 7.4 634 7608
Indian Overseas Bank 7.3 625 7502
Bank of Baroda 7.25 621 7450
Bank of India 7.25 621 7450
Canara Bank 7.25 621 7450

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Monthly Interest Rate on ₹1 Lakh FD By Private Sector Banks

Private Sector Banks Interest Rates Monthly Interest Earned Yearly Interest Earned
IndusInd Bank 7.75 665 7,978
RBL Bank 7.5 643 7714
Bandhan Bank 7.25 621 7450
DCB Bank 7.15 612 7,344
Kotak Mahindra Bank 7.1 608 7,291

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Monthly Interest Rate on ₹1 Lakh FD By Small Finance Banks

Small Finance Banks Interest Rates Monthly Interest Earned Yearly Interest Earned
Shivalik Small Finance Bank Ltd. 8.7 749 8,988
Jana Small Finance Bank 8.5 731 8,775
Ujjivan Small Finance Bank 8.25 709 8,509
Equitas Small Finance Bank 8.2 705 8,456
Utkarsh Small Finance Bank 8 687 8,243

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Monthly Interest Rate on ₹1 Lakh FD By NBFCs

NBFCs Interest Rates Monthly Interest Earned Yearly Interest Earned
Shriram Finance 8.6 740 8,881
Bajaj Finance Ltd. 8.05 691 8,296
Mahindra Finance Ltd. 8.05 691 8,296
Sundaram Finance 7.95 683 8,190
LIC Housing Finance 7.75 683 8,190

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FD Calculator

An FD calculator helps you determine the value of your investment at maturity. In order to calculate this value, factors such as interest rate, deposit duration, and investment amount are taken into account. The FD calculator calculates the maturity amount using a compounding formula, which can be annual, semi-annual, quarterly, or monthly.

Maturity Date :  
Invested Amount :  ₹10,000
Interest Amount :  ₹666
Maturity Amount :  ₹10666

Note that, the interest earned is compounded annually, semi-annually, quarterly, or monthly.
Opting for a monthly payout affects your FD returns. Therefore, it's essential to carefully review the terms of your agreement to understand the services provided by the financial institution and the benefits associated with your fixed deposit investment.

Steps To Use FD Calculator

Spend just a few seconds to determine your maturity amount with the help of the quick and practical FD calculator. You need to enter the following data into the FD maturity calculator by following the instructions below:

  1. Enter the amount you want to invest in a fixed deposit (i.e. ₹1 lakh).
  2. Enter the interest rate offered by the respective bank.
  3. Enter the tenure in years (here it is 1 year).
  4. Check the maturity amount as displayed by the calculator.

Want to know how much your money can grow with ₹1 Lakh FD for 1 year? Try the FD Calculator now!

Points to Keep In Mind When Investing ₹1 Lakh in FD

When investing a significant amount like ₹1 lakh in a Fixed Deposit (FD), it is important to consider various factors to make informed decisions and maximise returns. By understanding key points and strategies, you can make the most of your investment and achieve your financial goals. Here are a few key points that you need to consider:

  • Interest Rates: Different banks offer varying interest rates on FDs. Higher interest rates can help you earn more on your investment. Compare the rates offered by different banks and choose the one that provides the best returns.
  • Tenure: FDs have a fixed duration, typically ranging from a few months to several years. The interest rates may vary based on the deposit's duration. Consider your financial goals and liquidity needs when choosing the duration.
  • Interest Payment: FDs can provide interest payments at different intervals, such as monthly, quarterly, annually, or at maturity depending on the compounding option. Select an option that fits your income requirements.
  • Premature Withdrawal: Understand the terms and conditions related to premature withdrawal of your FD. There may be penalties or reduced interest rates if you need the funds before the maturity period.
  • Safety: FDs are considered secure investments because they are insured by the Deposit Insurance and Credit Guarantee Corporation (DICGC) up to Rs. 5 lakh per depositor per bank. Make sure to select a reputable bank for your investment.
  • Tax Implications: Interest earned on FDs is taxable. The tax liability depends on your income slab. Take into account the tax implications when estimating the returns from your investment.

TDS on a Fixed Deposit of ₹1 Lakh FD
The TDS on the monthly interest earned from a ₹1 lakh fixed deposit varies based on the individual's income bracket. If the annual interest from all fixed deposits is below ₹40,000, banks do not deduct any TDS. However, if the annual interest from FDs exceeds ₹40,000 for regular citizens or ₹50,000 for senior citizens, the bank will deduct 10% of TDS. If PAN is not submitted, the TDS rate would be 20%.

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Benefits of Monthly Income Fixed Deposits

Monthly Income Fixed Deposits offer a reliable way to earn regular income and protect your investment. A monthly FD plan is great for those needing regular income, like retirees or individuals with extra money but limited income sources. With this type of FD, you receive monthly interest payments, ensuring financial stability and flexibility. Here are the key benefits:

  • Flexibility in Investment Amount: Monthly Income Fixed Deposits allow investors to customise their investments without any maximum limit, catering to individual financial capabilities and needs.
  • Competitive Returns: Investors can benefit from higher earnings compared to traditional FDs and post office monthly income schemes, making it the most convenient and promising investment option.
  • Guaranteed Monthly Returns: Investors can rely on a consistent monthly income from Monthly Income Fixed Deposits, ensuring financial stability and predictability regardless of market fluctuations.
  • Professional Fund Management: Monthly income schemes are managed by experienced fund managers who make strategic decisions on fund allocation between debt and equity instruments.
  • Enhanced Liquidity: With no preset lock-in period, investors have the flexibility to withdraw funds at any time to address unforeseen financial requirements or emergencies.
  • No Processing Charges: Investors are not burdened with any processing fees when opening an account for the monthly income plan, facilitating a hassle-free investment process.
  • Minimal Exit Fee: The scheme imposes a negligible exit fee of less than 1% of the total investment, ensuring cost-effective investment management for participants.

Interest Rate on Monthly Income FDs
Interest rates for monthly income fixed deposits (FDs) are typically similar to regular term deposits. Senior citizens may receive a higher interest rate, ranging from 0.25% to 0.5% more than the standard rates. It is important to note that if you opt for a regular fixed deposit and withdraw the interest every month for income supplementation, banks may at times provide discounted interest rates.

Steps to Open an FD Account For ₹1 Lakh

You can open an FD account both online and offline mode. Here are the common steps that you need to follow to open an FD account for ₹1 lakh.


  1. Log in to your bank account online.
  2. Look for the option related to fixed deposits.
  3. Choose the 'open FD' option.
  4. Fill out the online application form accurately.
  5. Upload all the necessary documents as requested.
  6. Transfer the desired amount for your investment.


  1. Visit the nearest branch of your bank or financial institution.
  2. Complete the offline application form correctly.
  3. Attach the required documents to the application form and submit them.
  4. Provide a cheque for the investment amount you wish to make.

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Frequently Asked Questions

A Fixed Deposit (FD) is an investment option offered by banks and financial institutions. You deposit a lump sum for a fixed period (from a few days to several years) at a predetermined interest rate. It's a low-risk way to grow your money compared to stocks.

The maturity amount of your FD will depend on the principal amount (your initial deposit), interest rate, and tenure. You can use the FD calculator provided above to get instant accurate results.

Interest rates on FDs vary depending on the bank, chosen tenure, and market conditions. Generally, they range from 2.5% to 8.5% per annum for a 1-year FD. The table in the previous answer shows estimated monthly interest for different rates.

Yes, you can invest Rs 1 lakh in an FD. The minimum deposit amount can vary depending on the bank and specific FD scheme, but Rs 1 lakh is a common starting point.

The monthly interest for a 12-month FD is calculated by dividing the yearly interest earned by 12. The table provided above shows estimated monthly interest for various rates on a 1 lakh FD for 1 year.

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