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.
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.
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 senior citizen FD rates range from 7.39% 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.
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
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.
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.
Important things to consider when investing Rs. 1 lakh in an fixed deposit
- 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.
- Tenure Selection: Consider your financial goals and liquidity needs when choosing the tenure of FD. Longer tenures may offer higher interest rates, but ensure alignment with your overall financial plan.
- 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.
- Tax Implications: Understand the tax implications on the interest earned. Explore tax saving FD or consider the impact of taxation on regular FDs to make an informed decision based on your tax bracket.
- 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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