A large section of the Indian population favors fixed deposits as an investment instrument to park funds for financial emergencies and future goals. All financial institutions, especially banks, NBFCs, and post offices, offer a range of fixed deposit products to suit your personal preferences. Your fixed deposits ensure money growth through interest applied to the principal.
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If you have Rs 1 lakh and want to invest in a fixed deposit, your monthly interest earned on it will look like the following illustration.
Interest rate range: 2.50% to 8.50%
|FD Amount (Rs)||Amount||1 Lakh Interest For 1 Year|
|1 Lakh||INR 208.33||2.50%|
|1 Lakh||INR 250||3.00%|
|1 Lakh||INR 291.66||3.50%|
|1 Lakh||INR 333.33||4.00%|
|1 Lakh||INR 375||4.50%|
|1 Lakh||INR 416.66||5.00%|
|1 Lakh||INR 458.33||5.50%|
|1 Lakh||INR 500||6.00%|
|1 Lakh||INR 541.66||6.50%|
|1 Lakh||INR 583.33||7.00%|
|1 Lakh||INR 625||7.50%|
|1 Lakh||INR 666.66||8.00%|
|1 lakh||INR 708.33||8:50%|
Every bank offers attractive interest rates that determine your return on investment. The non-cumulative Fixed Deposit particularly suits 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.
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 offices usually offer higher interest rates than banks.
Senior Citizens (60 years and above) get extra 0.25% to 0.50% over the regular citizen interest rates for tenors greater than 6 months.
The following table represents the monthly interest along with the maturity amount for five years tenor:
|NBFC||Interest Rates (%)||Monthly Interest Amount (INR)||Maturity Amount (INR)|
|PNB Housing Finance||7.65%||618||1,34,567|
|Bajaj Finance Ltd||7.85%||632||1,45,915|
Fixed Deposit is an investment vehicle that parks your investible funds to help them grow through the accrued interest. The FD interest rate is generally higher compared to savings accounts. It covers a comprehensive product range depending on the interest payout. Fixed deposit is also known as Term Deposit.
It is broadly classified as:
Non-cumulative FD: The interest accrued on your fixed or term deposit is paid out in your chosen frequency. Usually, it is either monthly or quarterly in case you choose tenors over 12 months. Thus, your principal investment remains untouched at maturity.
Cumulative FD: The interest accrued in fixed deposits under this category is not paid but added to the principal. The compounded amount accrued is paid at maturity. In addition, banks typically apply quarterly compounding that helps your money grow.
The online FD calculator helps you calculate the interest for non-cumulative and cumulative fixed deposits. You can also use the following formula to calculate interest on your Rs 1 lakh FD.
A = P (1+r/n) ^ (nt)
A - maturity amount
P - principal (investment amount)
r - interest rate
n - compounding frequency
t - year tenor
A calculator is an online tool for you to know the maturity amount and the interest earned over an FD’s tenure.
Enter the following information to proceed with calculation:
Investment amount (Principal)
The results show the following:
Monthly/quarterly/total interest earned
Fixed deposits continue to be a safe investment option in India with their easy availability in different tenors in all financial institutions. While calculating the monthly interest for Rs.1 Lakh fixed deposit is the benchmark here, it is also an input for future financial planning. Therefore, you must weigh your investment options to fulfill your financial goals effectively.
|Bank||Rate of Interest (%)|
|Punjab National Bank||3.50 to 6.50 %|
|SBI||3 to 6.50 %|
|HDFC Bank||3 to 7.00 %|
|Bank of India||3 to 6.00 %|
|Axis Bank||3.50 to 7.00 %|
|FD Interest Rates|
|SBI FD Interest Rates||HDFC FD Interest Rates|
|ICICI FD Interest Rates||Axis Bank FD Interest Rates|
|Canara FD Interest Rates||Yes Bank FD Interest Rates|
|Kotak Mahindra FD Interest Rates||Bandhan Bank FD Interest Rates|
|Union Bank of India FD Interest Rates||Indusind Bank FD Interest Rates|
|PNB FD Interest Rates||Bank of Baroda FD Interest Rates|
|IDFC Bank FD Interest Rates||Indian Bank FD Interest Rates|
|RBL Bank FD Interest Rates||UCO Bank FD Interest Rates|
|Karnatka Bank FD Interest Rates||Bank of India FD Interest Rates|
|IDBI Bank FD Interest Rates||Central Bank of India FD Interest Rates|
|Bank of Maharashtra FD Interest Rates||Citi Bank FD Interest Rates|
|Allahabad Bank FD Interest Rates||Indian Overseas Bank FD Interest Rates|
|Andhra Bank FD Interest Rates||Corporation Bank FD Interest Rates|
|DBS Bank FD Interest Rates||Syndicate Bank FD Interest Rates|
|Dena Bank FD Interest Rates||Vijaya Bank FD Interest Rates|
|State Bank of Travancore FD Interest Rates||State Bank of Mysore FD Interest Rates|
|State Bank of Hyderabad FD Interest Rates|
*All savings are provided by the insurer as per the IRDAI approved
insurance plan. Standard T&C Apply
+ Trad plans with a premium above 5 lakhs would be taxed as per applicable tax slabs post 31st march 2023
#Discount offered by insurance company
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