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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.

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Interest earned, by rate and tenure

Rate1 yr2 yrs3 yrs5 yrs10 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

0₹37.5K₹75K₹1.13 L₹1.5 LYr 0Yr 1Yr 2Yr 3Yr 4Yr 5
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.