Monthly interest on Rs. 1 lakh FD for senior citizens
Bajaj Finance FD offers senior citizens an additional up to 0.35% p.a. interest rate benefit. The senior citizen FD rates range from 6.74% p.a. up to 7.30% p.a. for 1 to 5 years for senior citizens. The investment made by them can provide high monthly interest for deposits.
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.
Tax Benefits on Rs. 1 Lakh Fixed Depositt
The tax treatment of interest earned on a Rs. 1 Lakh fixed deposit depends on your income tax slab and whether you're a regular or senior citizen. Here are the key points:
No TDS is deducted if your total interest earnings in a financial year are within Rs. 40,000 (for regular citizens) or Rs. 50,000 (for senior citizens).
If your interest income exceeds these limits, a TDS of 10% will be applied.
However, if you fail to submit your PAN, the TDS rate increases to 20%—regardless of your age or income level.
How to calculate monthly interest on a Rs. 1 Lakh Fixed Deposit
You can use an online FD interest calculator to estimate the potential returns on a Rs. 1 lakh fixed deposit by entering the following details:
Alternatively, here’s how you can calculate it manually:
Monthly Interest Calculation Formula
Monthly Interest Earned = Principal × (Interest Rate ÷ 12)
Maturity Amount Example
Let’s assume you invest Rs. 1,00,000 in a fixed deposit at an annual interest rate of 7.30% for a tenure of 5 years.
Monthly Interest Earned
Monthly Interest = Rs. 1,00,000 × 7.30% ÷ 12
= Rs. 1,00,000 × 0.073 ÷ 12
= Rs. 7,300 ÷ 12
= Rs. 608.33
So, the monthly interest on Rs. 1 Lakh at 7.30% p.a. would be approximately Rs. 608.33.
Interest Earned at Maturity
Interest Earned = Monthly Interest × Number of Months
= Rs. 608.33 × 60
= Rs. 36,499.80
At the end of 5 years, your total interest earnings would be approximately Rs. 36,499.80.
How to calculate monthly interest on a Rs. 1 Lakh Fixed Deposit
You can use an online FD interest calculator to estimate the potential returns on a Rs. 1 lakh fixed deposit by entering the following details:
Principal amount
Investment tenure
Applicable interest rate
Penalty for Withdrawing an FD of Rs 1 Lakh Before Maturity
Premature withdrawal lets you access your fixed deposit before its maturity, typically during emergencies. However, this option often comes with penalties like lower interest rates or withdrawal charges, depending on the bank or NBFC’s policy. The applicable interest rate is based on the actual tenure completed before withdrawal.
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.
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, FD provide substantially greater interest rates.
- Senior citizen can get additional rate benefit of up to 0.35% p.a.
- Higher credit rating of [ICRA]AAA(Stable), indicating the highest level of safety and lowest investment risk.
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.
FD 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.