Monthly Interest for 1 lakh Fixed Deposit

Discover the financial advantages of investing Rs. 1 lakh in a fixed deposit for a stable monthly income. Learn about monthly interest rates, benefits, eligibility criteria, and more.
Monthly Interest for 1 lakh Fixed Deposit
4 mins
7 May 2024

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.

Pro tip

Enjoy higher interest rate with Bajaj Finance Digital FD. Unlock returns of up to 8.85% p.a. by investing for 42 months via our website and app.

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.

FD Amount

Interest Rate Per Year

Interest Earned Monthly

Rs. 1 lakh

2.5%

Rs. 208.33

Rs. 1 lakh

3%

Rs. 250

Rs. 1 lakh

3.5%

Rs. 291.66

Rs. 1 lakh

4%

Rs. 333.33

Rs. 1 lakh

4.5%

Rs. 375

Rs. 1 lakh

5%

Rs. 416.66

Rs. 1 lakh

5.5%

Rs. 458.33

Rs. 1 lakh

6%

Rs. 500

Rs. 1 lakh

6.5%

Rs. 541.66

Rs. 1 lakh

7%

Rs. 583.33

Rs. 1 lakh

7.5%

Rs. 625

Rs. 1 lakh

8%

Rs. 666.66

Rs. 1 lakh

8.5%

Rs. 708.33


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.

Payout frequency

FD rates

Monthly

Up to 8.05% p.a.

Quarterly

Up to 8.10% p.a.

Half-yearly

Up to 8.18% p.a.

Yearly

Up to 8.35% p.a.

Maturity

Up to 8.35% p.a.


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). 

Investment amount

Cumulative interest for 60 months

Maturity amount

Rs. 1 lakh

Rs. 47,614

Rs. 1,47,614

Rs. 5 lakh

Rs. 2,38,072

Rs. 7,38,072

Rs. 10 lakh

Rs. 4,76,143

Rs. 14,76,143

Rs. 15 lakh

Rs. 7,14,215

Rs. 22,14,215

Rs. 20 lakh

Rs. 9,52,286

Rs. 29,52,286


* 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 up to 0.40% p.a. interest rate benefit. The FD rates range from 7.35% 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.

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Frequently asked questions

How much interest will I get on Rs. 1 Lakh fixed deposit?

There is no minimum or maximum monthly interest; it will depend on the bank's/ NBFC's interest rate for a fixed deposit of one lakh rupees.

How to calculate FD interest on Rs. 1 Lakh?

You can use the Bajaj Finance fixed deposit interest calculator to easily calculate the interest earned per month and your overall maturity amounts on Fixed deposits worth Rs. 1 Lakh. Your principal i.e., Rs. 1 Lakh, tenure, and the interest rate charged to calculate the interest amount.

Can I change my FD's tenure?

No. You cannot change the tenure of your FD after it has been opened.

Are there any benefits for senior citizens for the monthly interest they will get on a Rs. 1 Lakh FD?

On a monthly interest payout of Rs. 1 lakh on a fixed deposit, senior citizens are eligible for a number of advantages. Senior citizens are subject to a higher TDS deduction than other citizens. Additionally, senior citizens can complete Form 15H to receive a TDS exemption even if they do not have taxable income.

What are the documents required for a Rs. 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.

Will the monthly income FD scheme provide me with monthly interest?

Yes, the monthly income FD scheme is designed to provide a regular stream of monthly interest payments, offering a steady income source for investors.

Can I change my FD's tenure?

No, FD tenure can’t be changed once opted.

What is the impact if you do not withdraw the fixed Deposit after maturity?

If a fixed deposit is not withdrawn after maturity, it may automatically renew for the same tenure at prevailing interest rates. It's crucial to be aware of the renewal terms and conditions.

What is the tax impact on the interest earned by you in Rs.1 lakh fixed Deposit?

The tax impact depends on your tax bracket. Interest earned on a Rs. 1 lakh fixed deposit is taxable, and investors should be aware of the applicable tax rates as per their income slab.

Does any change in the interest card rate affect your fixed deposit interest?

Yes, any change in the interest rate can affect your fixed deposit interest. Existing fixed deposits are typically not impacted, but new deposits or renewals may be subject to the revised interest rates set by the financial institution.

What are the eligibility criteria for a Rs. 1 Lakh fixed deposit?

The eligibility criteria for a Rs. 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.
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Disclaimer

As regards deposit taking activity of Bajaj Finance Ltd (BFL), the viewers may refer to the advertisement in the Indian Express (Mumbai Edition) and Loksatta (Pune Edition) furnished in the application form for soliciting public deposits or refer https://www.bajajfinserv.in/fixed-deposit-archives
The company is having a valid Certificate of Registration dated March 5, 1998 issued by the Reserve Bank of India under section 45 IA of the Reserve Bank of India Act, 1934. However, the RBI does not accept any responsibility or guarantee about the present position as to the financial soundness of the company or for the correctness of any of the statements or representations made or opinions expressed by the company and for repayment of deposits/discharge of the liabilities by the company.

For the FD calculator the actual returns may vary slightly if the Fixed Deposit tenure includes a leap year.