Monthly Interest for 1 Lakh Fixed Deposit

Monthly Interest for ₹ 1 Lakh FD - Illustration

The monthly interest you earn depends on the interest rate offered by your bank or NBFC. Here is a simple breakdown:

Interest Rate Range: 2.50% p.a. to 8.50% p.a.

Note: The monthly interest amount stays the same as long as the FD amount and interest rate remain unchanged, regardless of the tenure.

Bank-wise Monthly Interest for 1 Lakh Fixed Deposit

Different banks offer different interest rates. Here is what you can earn monthly on a 1 lakh FD across popular banks:

*Top Banks and NBFCs FD Rates as of June 2026. Please confirm with your respective bank before investing.

₹ 1 Lakh Fixed Deposit Interest Per Month in NBFCs

The following table represents the 1 lakh fixed deposit interest per month by investing in NBFCs with applicable interest rates:

*Top NBFCs FD rates as of 2026.

1 Lakh Fixed Deposit Interest Per Month in Post Office

Post Office FDs are government-backed and completely safe. Here is what you can earn:

Interest Rates for ₹ 1 Lakh Fixed Deposit

Every bank offers attractive interest rates that determine your return on investment. The non-cumulative Fixed Deposit is particularly suited to those who depend on interest income, such as retired individuals or senior citizens. You must calculate the monthly interest on Rs 1 Lakh as a benchmark for planning the investment amount to match certain needs.

Points to Remember:

• The interest rates in the grid are applied to domestic and NRO term deposits.
• Non-cumulative fixed deposits and those with tenors under 90 days are deprived of the compounding benefit.
• Individual investors must confirm interest rates with their respective banks.
• NBFCs and post office FD interest rates are higher than those of banks.
• Senior Citizens FD rates (60 years and above) get an extra 0.25% to 0.50% over the regular citizen interest rates for tenors greater than 6 months.

Step to Open a Monthly Payout FD

Opening a monthly payout FD is simple:

• Choose your bank, NBFC, or post office based on the interest rate
• Select the FD amount (minimum varies by bank)
• Choose your tenure
• Select non-cumulative and set payout frequency to monthly
• Link your savings account for a monthly interest credit
• Submit KYC documents and complete the process online or at the branch

Documents Required to Open a Monthly Payout FD

Identity Proof (any one): Aadhaar Card, PAN Card, Passport, Voter ID, Driving Licence

Address Proof (any one): Aadhaar Card, Electricity Bill, Telephone Bill, Bank Statement, Passport

What Are the Types of Fixed Deposits?

A fixed deposit is an investment of your funds that helps them grow through accrued interest. The FD interest rate is generally higher than that of savings accounts. It covers a comprehensive product range depending on the interest payout. There are two broad types of FDs based on interest payout:

1. Non-Cumulative FD:

   Interest is paid out monthly or quarterly. Your principal stays intact, and you receive regular income. Best suited for retirees and those needing a monthly cash flow.

2. Cumulative FD:

   Interest is not paid out; it is added back to the principal and compounded. You get a lump sum at maturity. Best suited for long-term wealth building.

How to Calculate Monthly Interest on 1 Lakh FD?

The online FD calculator helps you calculate the interest for non-cumulative and cumulative fixed deposits, or you can use this simple formula:

Monthly Interest = (P x R ) / 12

For example, at 7% interest on ₹ 1 lakh: Monthly Interest = (1,00,000 × 7%) / 12 = ₹ 583.33

For cumulative FDs, the formula is: A = P (1 + r/n) ^ (nt)

Where A = maturity amount, P = principal, r = interest rate, n = compounding frequency, t = tenure in years.

How to Use an FD Calculator for a Monthly Interest on ₹ 1 Lakh Deposit?

A calculator is an online tool that helps you determine the maturity amount and the interest earned over an FD's tenure.

Enter the following information to proceed with the calculation:

• Investment amount (Principal)
• Tenure
• Interest rate

The results show the following:

• Principal
• Maturity value
• Monthly/quarterly/total interest earned

Wrapping Up

A ₹ 1 lakh Fixed Deposit with a monthly payout option is one of the simplest and safest ways to generate regular income in India. Whether you are a retiree, a first-time investor, or someone looking to diversify, understanding how much you can earn monthly helps you plan better. Compare rates across banks and NBFCs, factor in senior citizen benefits if applicable, and choose the tenure that best fits your financial goals.