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  1. Monthly Interest for 1 Lakh in Fixed Deposit 2023
  2. Things to consider when investing in 1 Lakh in FD:
  3. Frequently Asked Questions

Investing 1 lakh in a fixed deposit (FD) can be a conservative and low-risk approach to preserve your capital and earn a stable return. However, it’s important to note that the interest rates on FDs can vary over time. Therefore, it’s recommended to check for the current interest rates before making any investment decisions.

Monthly Interest for 1 Lakh in Fixed Deposit 2023

Bank NameInterest RatesMonthly Interest for 1 Lakh
Central Bank of India 7.25%Rs. 604
City Union Bank 7.50%Rs. 625
Bank of Maharashtra 7.50%Rs. 625
Post Office 7.50%Rs. 625
Bank of India 7.50%Rs. 625
ICICI 7.60%Rs. 633
State Bank of India 7.60%Rs. 633
HDFC 7.75%Rs. 646
Punjab National Bank 7.75%Rs. 646
Indian Overseas Bank 7.75%Rs. 646
Bank of Baroda 7.75%Rs. 646
Axis Bank 7.85%Rs. 654
LIC 8.00%Rs. 667
RBL Bank 8.30%Rs. 692
AU Small Finance Bank 8.50%Rs. 708
Shriram Finance 8.68%Rs. 723
Fincare Small Finance 9.11%Rs. 759

*Highest interest rate for each bank were taken, for detailed interest rates and tenure please visit their respective bank pages.

Things to consider when investing in 1 Lakh in FD:

  • Interest Rates: Different banks offer varying interest rates on FDs. Higher interest rates can help you earn more on your investment. Compare the rates offered by different banks and choose the one that provides the best returns.
  • Tenure: FDs have a fixed tenure, usually ranging from a few months to several years. The interest rates may vary depending on the duration of the deposit. Consider your financial goals and liquidity needs when selecting the tenure.
  • Interest Payment: FDs can provide interest payments at different intervals, such as monthly, quarterly, annually, or at maturity depending on the compounding option. Choose an option that suits your income requirements.
  • Premature Withdrawal: Understand the terms and conditions related to premature withdrawal of your FD. In case you need the funds before the maturity period, there might be penalties or reduced interest rates.
  • Safety: FDs are considered safe investments because they are insured by the Deposit Insurance and Credit Guarantee Corporation (DICGC) up to Rs. 5 lakh per depositor per bank. Ensure that you choose a reputable bank for your investment.
  • Tax Implications: Interest earned on FDs is subject to tax. The tax liability depends on your income slab. Consider the tax implications while estimating the returns from your investment.

Frequently Asked Questions

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

The monthly interest earned on a ₹1 Lakh fixed deposit is determined by the interest rate offered by the bank. There are no restrictions on the minimum or maximum limit of the monthly interest, as it will vary based on the prevailing interest rate.

What is the typical interest rate offered in this scheme?

The interest rates for the 1 Lakh FD Monthly Interest scheme vary across banks and financial institutions. The interest rates range from 7.25% to 9.11% per annum. It is advisable to compare rates offered by different banks before making a decision.

Are there any benefits for senior citizens for their monthly interest on a ₹1 Lakh FD?

Firstly, senior citizen depositors enjoy higher interest rates on FD than others. Next, they receive a higher TDS deduction compared to regular citizens. Additionally, if senior citizen does not have a taxable income, they can submit Form 15H to enjoy an exemption from TDS deductions.

Is the interest earned on 1 lakh FD taxable?

Yes, the interest earned from the 1 Lakh FD is subject to tax as per the prevailing income tax laws. The interest income is added to your taxable income and taxed at the applicable slab rate.

Can I withdraw my 1 lakh deposit before the maturity period?

In most cases, premature fixed deposit withdrawal may attract penalties and lower interest rates. However, some banks may offer partial withdrawal options or allow premature closure under specific circumstances. It is essential to check the terms and conditions of the scheme before investing.

What is 7 percent interest on 1 lakh?

With 7 percent annual interest rate on 1 lakh, you would earn a simple interest of 700 rupees per year or Rs. 58.33 per month. When the 7 percentage interest for 1 lakh compounded for 1 year, you will earn Rs. 7312.01 on compounding daily, Rs. 7,308.47 on weekly, Rs. 7,299.09 on monthly and Rs. 7,292.47 on compounding quarterly as interest.

Fixed Deposit Interest Per Month