Monthly Interest for 1 lakh Fixed Deposit

Idle money lying in the savings account and inflation are the silent killers of savings. Inflation generally means a gradual increase in the general price level of goods and services in an economy over a period, leading to a decline in the purchasing power of a currency. The rate of interest on deposits in banks is insufficient to beat inflation and meet one’s financial goals for the short term as well as the long term. To make short and loan-term financial plans viable, an individual must look beyond bank-fixed deposits (FDs) to be able to meet the required corpus.

Different banks offer various FDs and saving account rates. However, one needs to look at instruments such as corporate or company FDs to beat inflation and avail of the best interest rates. When evaluating these options, it is crucial to look for avenues that not only beat inflation but also provide optimal monthly interest.

In this context, opting for a reputable Non-Banking Financial Company (NBFC) with a strong credit rating becomes instrumental. Aligning your investments with a creditworthy NBFC can yield substantial returns in the long run, ensuring that your hard-earned money doesn't just keep pace with inflation but also grows significantly over time. By prioritising options that offer the best monthly interest for a 1 lakh fixed deposit, investors can take proactive steps towards realising their financial goals and mitigating the impact of inflation on their savings.

Monthly interest on a Rs. 1 lakh fixed deposit

To share an idea of monthly income earned, the monthly interest on a Rs. 1 lakh FD ranging from 2.50% to 8.50% p.a. is presented below.

Calculating monthly interest for Rs. 1 lakh fixed deposit

Bajaj Finance offers higher interest rates for fixed deposits when compared to other NBFCs along with the security of your capital. An investor can make financial plans by utilising laddering or Systematic Deposit Plan as well with Bajaj Finance FD. Along with the power of compounding, high-interest rates by Bajaj Finance FD can help create a corpus in a disciplined manner.

Here is a glimpse of the FD interest rates for a tenure of 60 months.

Fixed Deposit calculators

A Fixed Deposit (FD) Calculator is a financial tool designed to provide individuals with a precise estimate of the interest earned on their fixed deposits over a specified period. It operates on a simple algorithm, taking into account key parameters such as the principal amount, interest rate, and tenure to calculate the accrued interest. For investors exploring the potential of a Rs. 1 lakh FD, this calculator proves invaluable in understanding the financial implications and optimising returns.

By inputting the principal amount of Rs. 1 lakh, along with the chosen interest rate and tenure, individuals can swiftly generate accurate projections of their monthly interest earnings. The FD calculator's real-time functionality allows users to experiment with various interest rates and tenures, offering a dynamic platform for strategic financial planning. This tool becomes particularly crucial in aligning investments with specific goals, whether aiming for short-term gains or long-term wealth accumulation.
The FD calculator simplifies decision-making by providing a clear overview of potential gains, empowering individuals to make informed choices about their financial future.

60 months fixed deposit maturity values with Bajaj Finance

An investor can earn monthly returns by investing in fixed deposits with different tenures. You can estimate the monthly interest on your deposit using this instrument available our website.

The following table shows the cumulative interest rates for 60-month FDs offered by Bajaj Finance to investors below the age of 60 years. This is for a ‘monthly’ payout frequency at current Return on Investment (ROI). 

* The values shown above are calculated using the Bajaj Finance FD Calculator. As per the offered interest rates during April 2024.

Monthly interest on Rs. 1 lakh FD for senior citizens

Bajaj Finance FD offers senior citizens an additional 0.40% p.a. interest rate benefit. The FD rates range from 7.91% p.a. up to 8.85% p.a. for 1 to 5 years for senior citizens. The investment made by them can provide high monthly interest for deposits.

Benefits of monthly income fixed deposits

FDs are among the most well-known investment options for the following reasons: It will motivate people to save for a set amount of time.

• You can opt for regular returns on monthly, quarterly, half-yearly, or yearly basis.

• Compared to a typical savings account, FDs provide substantially greater interest rates.

• Senior citizen can get additional rate benefit of up to 0.40% p.a.
  

• Higher credit rating of [ICRA]AAA(Stable), indicating the highest level of safety and lowest investment risk.

Rates of Interest on Monthly Income FDs

These accounts typically pay interest at the same rates as are outlined for traditional fixed deposits. Additionally, they frequently give senior citizens an interest rate that is between 0.25 and 5 percent greater than the going rate. Since the banks/NBFCs set these rates, it is advisable to verify the precise rate with the financial organisation before investing.

TDS on Rs. 1 Lakh Fixed Deposit

It is important to keep in mind that the monthly interest on a Rs. 1 lakh fixed deposit is subject to tax depending on the income bracket one falls under. The bank would effectively not deduct any TDS if the yearly interest for a fixed deposit of Rs. 1 lakh (including all fixed deposits), is less than Rs. 40,000. However, if the interest on a Rs. 1 lakh fixed deposit surpasses Rs. 40,000 for normal people and Rs. 50,000 for senior citizens each month, the bank will take a 10% TDS deduction. Additionally, having a PAN card is advised because the bank would impose a 20% TDS on the monthly interest for a Rs. 1 lakh fixed deposit if you do not.

Who is eligible for monthly income FDs?

All Resident Indians, Sole proprietorships, Partnership firms and companies, Hindu Undivided Families (HUFs), clubs, associations, societies, and family trusts can apply for a Bajaj Finance FD online to get monthly income.

Non-Resident Indians (NRIs), Persons of Indian Origin (PIO) and Overseas Citizens of India (OCI) can connect with our representative or write to us on wecare@bajajfinserv.in.

Fixed deposit interest rates in India vary from one financial institution to another. High-interest rates on fixed deposits with the assurance of high credit ratings are provided by Bajaj Finance with stable ICRA and CRISIL ratings. You can earn a high amount of monthly interest as well as the total interest value on the invested funds.

Important things to consider when investing Rs. 1 lakh in an fixed deposit

1. Interest Rates: Research and compare interest rates offered by different banks and financial institutions. Even a slight variation in rates can significantly impact returns on a Rs. 1 lakh FD.
   
   
2. Tenure Selection: Consider your financial goals and liquidity needs when choosing the tenure of the FD. Longer tenures may offer higher interest rates, but ensure alignment with your overall financial plan.
   
   
3. Credibility of the Institution: Prioritize safety by opting for reputed and credible institutions. Check credit ratings and reviews to ensure the financial institution has a strong track record of fulfilling its financial obligations.
   
   
4. Tax Implications: Understand the tax implications on the interest earned. Explore tax-saving FDs or consider the impact of taxation on regular FDs to make an informed decision based on your tax bracket.
   
   
5. Interest Payout Options: Evaluate the interest payout options offered by the financial institution. Choose between monthly, quarterly, or cumulative interest payouts based on your cash flow requirements and financial goals.

Calculate your expected investment returns with the help of our investment calculators