
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.
7.1%*
Guaranteed Plan
(by insurance companies)
(10 Years)
6.5%**
Fixed Deposits
(by SBI bank)
(5-10 Years)
7.1%***
Public Provident Fund
(other popular options)
(15 Years)
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 |
Mahindra Finance | 7.75% | 604 | 1,45,240 |
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)
Where:
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)
Tenure
Interest rate
The results show the following:
Principal
Maturity value
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.
Allahabad Bank FD Interest Rates
Andhra Bank FD Interest Rates
Assam Gramin Vikash Bank FD Interest Rates
AU Small Finance Bank FD Interest Rates
Axis Bank FD Rates
Bajaj Finance FD Interest Rates
Bandhan Bank FD Interest Rates
Bangiya Gramin Vikash Bank FD Interest Rates
Bank of Baroda FD Interest Rates
Bank of Ceylon FD Interest Rates
Bank of India FD Interest Rates
Bank of Maharashtra FD Interest Rates
Allahabad Bank FD Calculator
Andhra Bank FD Calculator
AU Bank FD Calculator
Axis Bank FD Calculator
Bajaj Finance FD Calculator
Bandhan Bank FD Calculator
Bank of Baroda FD Calculator
Bank of India FD Calculator
Bank of Maharashtra FD Calculator
Canara Bank FD Calculator
Central Bank FD Calculator
Corporation Bank FD Calculator
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 % |
*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
++Source - Google Review Rating available on:- http://bit.ly/3J20bXZ
˜Top 5 plans based on annualized premium, for bookings made in the first 6 months of FY 24-25. Policybazaar does not endorse, rate or recommend any particular insurer or insurance product offered by any insurer. This list of plans listed here comprise of insurance products offered by all the insurance partners of Policybazaar. For a complete list of insurers in India refer to the Insurance Regulatory and Development Authority of India website, www.irdai.gov.in