Monthly Interest for 1 lakh Fixed Deposit

Invest in Rs. 1 Lakh fixed deposit for monthly interest with Bajaj Finance, providing a consistent source of income and long-term financial stability.
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Monthly Interest for 1 lakh Fixed Deposit
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4 mins
25 January 2025

If you have accumulated significant savings, investing in a fixed deposit can be a smart choice. To make the most of this investment, align it with your short-term or long-term financial goals and select a suitable tenure accordingly.

For instance, with a 5-year tenure, a Rs. 1 Lakh fixed deposit at an interest rate of 10% can yield up to Rs. 833 per month, resulting in an annual return of Rs. 61,051. On the other hand, choosing a 3-year tenure at the same rate will provide a monthly payout of Rs. 833, but the total annual interest earned would be Rs. 33,100. Shorter durations generally result in lower interest earnings.

Fixed deposits allow you to earn steady returns over your preferred tenure while offering flexible liquidity options. Opting for a monthly interest payout on a Rs. 1 Lakh FD can help you receive consistent returns based on your financial needs.

Fixed Deposit

  1. Trusted by over 5 lakh customers
  2. Fixed Deposits worth more than Rs. 50,000 crore booked
  3. Rated CRISIL AAA/STABLE and [ICRA]AAA(STABLE)
  4. Special tenure of 18, 22, 33, 42 and 44 months offered for higher returns
  5. Up to 0.40% p.a. extra interest offered for senior citizens
  6. Flexible interest payout options available - Monthly, Quarterly, Half-yearly, Annually or at Maturity

By proceeding, you agree to our Terms and Conditions

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

Pro tip

Bajaj Finance launches a new variant, "FD Max", for investments upto Rs. 25,000 . Bajaj Finance is providing one of the highest interest rates of up to 8.85% p.a.for senior citizens and 8.60% p.a. for non-senior citizens , in this variant.

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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.

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.

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

  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 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 FD 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 FD return 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.
What is the interest of Rs. 1 lakh in fixed deposit for 1 year?

For a fixed deposit of Rs. 1 Lakh for 1 year at an interest rate of 7.65% per annum, the interest earned will be Rs. 7,650.

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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.