Monthly Interest On ₹1 Lakh FD

No, there is no minimum or maximum cap to the monthly interest for a ₹1 Lakh fixed deposit. The monthly interest amount is determined by the interest rate offered by the bank.

Yes, interest earned on ₹1 Lakh fixed deposits is taxable based on your income slab. Banks deduct TDS at a rate of 10% if the interest earned exceeds ₹40,000 in a financial year.

Senior citizens enjoy certain benefits such as a higher TDS exemption threshold and can submit Form 15H to avoid TDS deduction if their total income is not taxable. However, the monthly interest earned on a ₹1 Lakh FD remains the same for both senior citizens and regular citizens.

To open an FD of ₹1 Lakh, you need to provide identity proof (e.g., PAN card, passport, Aadhaar card), address proof (e.g., passport, utility bills), and signature proof (e.g., PAN card, passport). Senior citizens need to provide age proof along with Form 15H, while regular citizens need to submit Form 15G.

To be eligible for a ₹1 Lakh fixed deposit, you must be at least 18 years old and have a PAN card. Minors can also have a fixed deposit under the guardianship of a guardian. Additionally, you must satisfy RBI-mandated KYC guidelines for identity, address, and age proof.

You can use an online fixed deposit interest calculator to calculate the interest earned per month and the overall maturity amount on a ₹1 Lakh fixed deposit. Simply input the principal amount, tenor, and interest rate to get the interest amount. Alternatively, you can use the formula for simple interest: Interest = (Principal × Rate × Time) / 100.

The penalty for premature withdrawal of a ₹1 Lakh fixed deposit depends on the terms and conditions set by the bank or financial institution. Typically, there may be a penalty in the form of reduced interest rates or forfeiture of a portion of the interest earned.

If you do not renew your ₹1 Lakh fixed deposit after maturity, the funds, along with the interest earned, will be transferred to your linked savings or current account. Alternatively, some banks may automatically renew the FD for the same tenor at prevailing interest rates unless instructed otherwise.

The deposit insurance coverage provided by the Deposit Insurance and Credit Guarantee Corporation (DICGC) currently insures deposits up to ₹5 lakh per depositor in a bank. Therefore, your ₹1 Lakh fixed deposit is fully insured by DICGC, ensuring the safety of your principal amount in case of bank failure.