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 8.60% 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 Rs. 1 lakh fixed deposit interest per month 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.
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 0.40% 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.
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.