FD interest on ₹1 lakh
How much interest does ₹1 lakh earn in an FD?
₹6,660 / year
At 6.5% compounded quarterly, like most banks. Left for 5 years, it grows to ₹1,38,042 — ₹38,042 of interest. A monthly-payout FD pays about ₹539 a month.
Open in the FD calculatorInterest earned, by rate and tenure
| Rate | 1 yr | 2 yrs | 3 yrs | 5 yrs | 10 yrs |
|---|---|---|---|---|---|
| 6.0% | ₹6.1K | ₹12.6K | ₹19.6K | ₹34.7K | ₹81.4K |
| 6.5% | ₹6.7K | ₹13.8K | ₹21.3K | ₹38K | ₹90.6K |
| 7.0% | ₹7.2K | ₹14.9K | ₹23.1K | ₹41.5K | ₹1 L |
| 7.5% | ₹7.7K | ₹16K | ₹25K | ₹45K | ₹1.1 L |
| 8.0% | ₹8.2K | ₹17.2K | ₹26.8K | ₹48.6K | ₹1.21 L |
| 8.5% | ₹8.8K | ₹18.3K | ₹28.7K | ₹52.3K | ₹1.32 L |
Interest before tax on a cumulative FD, compounded quarterly.
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₹
₹1 lakh
%
Big banks pay about 6–6.6% now (more for seniors); small finance banks pay more
yrs
Maturity amount
₹1,38,042
₹38,042 interest on ₹1,00,000 at 6.5%
Principal and interest
Interest
₹38K
Deposited
₹1,00,000
Interest earned
₹38,042
Effective yearly yield
6.66%
Growth
BalanceDeposited
Interest is taxed at your slab rate. At about ₹7,608 a year you stay under the ₹50,000 TDS limit with this bank.
Questions people ask
How much monthly interest will I get on ₹1 lakh?
With a monthly-payout FD at 6.5%, about ₹539 a month. That’s slightly less than a twelfth of the yearly interest: banks discount the quarterly rate to a month, because the interest is paid out instead of compounding.
Is FD interest on ₹1 lakh taxable?
Yes. It’s added to your income and taxed at your slab rate. In the 30% slab, the ₹6,660 you earn in a year is worth about ₹4,582 after tax.
Will the bank deduct TDS?
No, as long as your total interest from this bank stays under ₹50,000 a year (₹1 lakh for senior citizens). This FD earns about ₹6,660 a year.
What do senior citizens earn?
Most banks pay seniors 0.25–0.75% more. At 7%, ₹1 lakh earns about ₹7,186 in the first year.