₹1 Lakh FD for 1 Year: Calculate Your Interest & Earn Guaranteed Returns

14 June, 2024

Synopsis

• Fixed Deposit (FD) interest rates depend on the investment amount and tenure.

• You can use FD calculators to compute FD interest for 1 lakh for one year.

• FD are typically safe investments that protect your capital and provide fixed returns.

There is a reason why Fixed Deposits are every investor’s go-to investment choice. Touted as reliable investment avenues, FDs provide a predetermined, fixed rate of interest on the principal amount invested. The interest rate offered on FDs depends on your chosen investment tenure, and in case of high-value investments, the amounts deposited. With Fixed Deposits, you can choose your preferred payout method which could be monthly, quarterly, half-yearly, annually, and even as a lumpsum when your FD matures. If you’re considering investing in FDs and want to know about FD interest rates for ₹1 lakh deposit, this article is for you.

Breaking down ₹1 lakh FD interest Rate for 1 Year

When it comes to mathematical calculations, you may have surely come across the simple interest calculation formula. It applies to everything – whether you want to invest money and compute your returns on it, or if you’re taking on a loan. So, even if you want to compute FD interest for ₹1 lakh deposit, the formulae are as under:

Simple Interest = PxRxN/100

As, for compound interest the applicable formula to calculate ₹1 lakh FD interest payout is:

A = P (1+r/n) ^ (n * t)

In the above formula:

• A = the FD maturity amount

• P = the principal amount invested

• r = the applicable FD interest rate

• n = The frequency of compounding

• t = year or tenure of investment

Now, in case of a ₹1 lakh FD, interest per month typically depends on the frequency of interest payment and the prorated interest rate applied by the bank with which you have created your FD. As always, the bank considers factors like the applicable Fixed Deposit interest rate, the tenure of investment and the amount invested, which is ₹1 lakh in this case. The below example shows you how your interest payout could potentially look like on your 1 lakh FD for 1 year tenure.

Things to Remember

• The interest on a ₹1 lakh FD applies only if the investment is held for the full tenure.

• Early withdrawal may result in penalties or forfeiture of interest, depending on the bank’s policy.

• Interest rates are subject to change but are generally stable, ensuring timely payouts.

• Once an FD is opened, its tenure is fixed until maturity or early withdrawal.

• Senior citizens often receive higher FD interest rates, typically up to 0.50% more than the standard rates for those under 60 years.

Simplifying FD Interest Rate Calculations

Computing ₹1 lakh FD interest rate for a one-year investment tenure by applying different interest rates manually, typically takes a lot of time and effort. Manual calculations may also be error-filled. To avoid this inconvenience, you can use FD interest rates calculators available on the internet, and on your chosen bank’s websites. Click here to try out HDFC Bank’s free-to-use FD interest calculator. You simply need to input the figures in the applicable tabs to calculate the interest rates with 100% accuracy.

Open Fixed Deposit Accounts online with HDFC Bank

If you want to invest your hard-earned money in a safe investment avenue, an HDFC Bank Fixed Deposit Account can be an excellent choice. As an existing HDFC Bank customer, you can utilize the facility to open FD accounts online through your internet banking account or the HDFC Bank Mobile Banking App. You can also use FD interest rate calculators on our website to compute your interest earnings effortlessly.

Visit HDFC Bank to check the latest FD interest rates and start investing!

*Disclaimer: Terms and conditions apply. The information provided in this article is generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances.