Calculate Monthly Interest on 1 Lakh Fixed Deposit for 1 Year

Posted on Friday, February 7th, 2025 | By IndusInd Bank

Fixed deposits (FDs) are a popular investment choice for those seeking a safe and reliable way to grow their savings. When you invest in a fixed deposit, you deposit a lump sum of money in a bank for a fixed tenure, earning interest at a predetermined rate. In India, a ₹ 1 lakh fixed deposit is a common choice among investors.

This article will guide you through the process of calculating the monthly interest for a ₹ 1 lakh FD while highlighting the benefits of fixed deposit.

Understanding Fixed Deposit Interest

Before diving into calculations, it is essential to understand how interest is computed on FDs. The FD interest rate for ₹ 1 lakh, or any amount, depends on several factors. This includes the bank’s policies, the tenure of the deposit, and current economic conditions influencing the deposit rates.

Banks offer both cumulative and non-cumulative interest options. In a cumulative FD, interest is compounded and paid at maturity. On the other hand, in a non-cumulative FD, interest is paid out at regular intervals, such as monthly or quarterly. You can select either based on how you want to receive your returns.

Benefits of Fixed Deposits

Fixed deposits offer numerous advantages:

1. Safety: FDs are considered one of the safest investment options as they are not subject to market fluctuations.
2. Guaranteed Returns: The interest rate is fixed at the time of deposit, ensuring predictable returns.
3. Flexible Tenures: FDs can be opened for various tenures, ranging from a few months to several years.
4. Loan Facility: Many banks, including IndusInd Bank, offer loans against your FD, providing liquidity without breaking the deposit.

Calculating Monthly Interest for a ₹ 1 Lakh FD

To calculate the monthly interest for a ₹ 1 lakh FD, you will need to know the applicable interest rate.

Let us assume an interest rate of 7.75% per annum for a 2-year fixed deposit. For exact fixed deposit interest rates, you can refer to the bank’s official website. (Click here for current FD Interest Rates)

Using the FD calculator from IndusInd Bank, the total interest you would earn over the fixed deposit account’s tenure is ₹16,593.

Monthly Interest:

To calculate the monthly interest, you would earn based on the total interest, you need to divide the total interest by the number of months in the selected tenure.

For a ₹1 lakh FD, interest on a monthly basis for a tenure of 2 years would be ₹692.

Please note that the above amount shall either be paid at the maturity or as per the selected payout at the time of opening your FD.

Fixed deposits work on the principle of compounding. This means that the monthly interest depends on the selected payout frequency and the interest accumulated as per the interest rate at the time of payout.

Using a Fixed Deposit Calculator

For those who prefer a hassle-free approach, a fixed deposit calculator is an excellent tool. These calculators are available online and are easy to use. Simply input the principal amount, interest rate, and tenure, and the calculator will provide the maturity amount and periodic interest payouts.

IndusInd Bank offers an online fixed deposit calculator that can help you estimate your returns accurately.

Exploring IndusInd Bank’s Fixed Deposit Option

IndusInd Bank offers competitive FD interest rates and flexible deposit tenures, making it an attractive option for investors. Here is how you can align your investment with IndusInd Bank:

1. Competitive Rates: IndusInd Bank provides attractive FD interest rates up to 7.75% p.a. for ₹ 1 lakh and other amounts, ensuring your investment grows steadily.
2. Flexible Tenures: Choose from a tenures that suit your financial goals, whether short-term or long-term. You can choose a tenure anywhere between 7 days and 10 years.
3. Convenient Access: IndusInd Bank’s user-friendly online platform allows you to open and manage your fixed deposits effortlessly.
4. Auto-Renewal: Avail of facilities such as automatic renewal to enhance your investment experience. This allows you to reinvest your earnings into another FD.

Also Read: Different Types of Fixed Deposits

Conclusion

Calculating the ₹ 1 lakh interest per year for a fixed deposit is a straightforward process when you understand the components involved. With the stability and assured returns, fixed deposits remain a preferred investment choice for many.

IndusInd Bank offers a competitive FD offering, ensuring that investors enjoy maximum benefits from their deposits. Whether you are a seasoned investor or a first-time depositor, exploring the FD interest for 1 lakh with IndusInd Bank can help you make the most of your savings while enjoying peace of mind.

By understanding the nuances of fixed deposits and leveraging the right tools and bank features, you can efficiently manage your investments and secure your financial future.

Book a Fixed Deposit with IndusInd Bank today!

Disclaimer: The information provided in this article is generic and for informational purposes only. It is not a substitute for specific advice in your circumstances. Hence, you are advised to consult your financial advisor before making any financial decision. IndusInd Bank Limited (IBL) does not influence the views of the author in any way. IBL and the author shall not be responsible for any direct/indirect loss or liability incurred by the reader for making any financial decisions based on the contents and information.