Monthly Interest For 1 Lakh Fixed Deposit
28 Oct 2021

Monthly Interest For 1 Lakh Fixed Deposit

Get monthly bank interest for 1 lakh Fixed Deposit as an extra income source.

Key Takeaways

  • A Fixed Deposit is one of the safest investments instruments preferred by conservative investors.
  • You can open a Fixed Deposit with Banks and post-offices online and offline.
  • You can choose the monthly interest for 1 lakh Fixed Deposit payment option or opt for cumulative interest payment.
  • You get the entire investment back without losing your capital when the FD matures.
  • Interest rates on FDs may vary based on the investment amount and tenure.

Do you have a lot of idle money sitting in your Savings Account? Would you prefer to earn higher interest rates and perhaps create an additional income source? If yes, you should consider opening a Fixed Deposit Account. Find out the monthly bank interest for 1 lakh Fixed Deposit of your preferred tenure. Keep reading.

Fixed Deposits and Interest Rates

A Fixed Deposit or bank FD is one of the safest investment instruments. Essentially, it is an investment where you must lock away a fixed sum of money for a fixed tenure. Your bank offers interest income on the deposit.

The Fixed Deposit interest rates offered to you depend on your chosen investment tenure and the investment amount. For instance, the monthly interest for 1 lakh Fixed Deposit for a short-term, 1-year investment may be meagre, but you can get higher interest rates by increasing the FD amount and the investment tenures. FD interest rates also depend on the investing entity you choose and your age. For instance, FDs for senior citizens attract an extra 0.50% interest rate.

Calculating 1 Lakh Fixed Deposit Interest Per Month

You can use a Fixed Deposit Calculator to compute the monthly interest for 1 lakh Fixed Deposit. You can typically find the interest calculation tool on the websites of all banks. Here are the steps on how to calculate the interest earned on Fixed Deposits.

  1. Research the interest rates offered by various banks as per your preferred investment amount and tenure and locate the Fixed Deposit Calculator.
  2. Enter the principal amount you wish to invest – INR 100,000 in this case
  3. Choose your preferred investment tenure, which could range from 7 days to 10 years.

Per your chosen tenure, the FD calculator instantly computes the monthly interest for 1 lakh Fixed Deposit.

Fixed Deposits – Important Facts

  • FDs are also known as term deposits
  • Besides the monthly interest payment option, you can also select quarterly, half-yearly and annual interest payment.
  • In the cumulative payment option, the principal amount, interest earned, and maturity amount is paid at the end of the FD term.
  • Besides banks, Non-Banking Finance Companies and post offices in India also provide FD accounts.
  • You can also invest in government-approved tax-saving Fixed Deposit schemes.
  • Some banks offer higher interest rates if your FD amount exceeds a certain amount and investment tenure.
  • You typically have to pay a penalty if you prematurely withdraw the FD before the stipulated tenure.

How to Invest in Fixed Deposits in India?

Today, you can create your Fixed Deposits online and offline. Most banks and NBFCs allow you to create FDs online. However, you can open post-office FDs via the offline route only. The documentation for online FDs is minimal in that you can attach scanned copies, while you have to submit hard copies of your PAN, ID, and address for offline FDs.

If you prefer to save time and effort, and open an FD account remotely, then download DBS Bank app right away!

*Disclaimer: This article is for information purposes only. We recommend you get in touch with your income tax advisor or CA for expert advice.