A ₹1 Lakh Fixed Deposit is a common savings milestone for many Indian households. Whether it's an emergency fund or a short-term goal like a wedding or education, a 1L FD offers the perfect balance of safety and predictable growth.
A ₹1 Lakh Fixed Deposit is a common savings milestone for many Indian households. Whether it's an emergency fund or a short-term goal like a wedding or education, a 1L FD offers the perfect balance of safety and predictable growth.
Modeling a 1L Fixed Deposit
For a ₹1 Lakh deposit, the difference between banks can be up to ₹1,500 in interest per year.
- Maturity Range: ~₹1.07 Lakh to ₹1.08 Lakh (at 7%-8%).
- TDS Impact: At this amount, your annual interest is likely below the ₹40,000 TDS threshold.
- Compounding: Most banks compound quarterly, boosting your effective yield.
₹1.00 Lakh Fd Case Study
Modeling a deposit of ₹1L in a top bank FD for 5 years at 7% p.a. compounded quarterly.
• Maturity Amount: ₹1.41 L
• Interest Earned: Calculated
• Efficiency: Bank-grade precision.
Use this specific scenario to plan your fixed-income laddering strategy and identify the exact interest credit you will receive at the end of the tenure.
Principal: ₹1L
Rate: 7% p.a. (quarterly)
Tenure: 5 Years
Maturity Value: ₹1.41 L
Current FD Rates by Bank (May 2026) — General & Senior Citizen
Compare FD interest rates across major Indian banks for a 1-2 year tenure:
| Bank | 1 Year FD Rate | 2 Year FD Rate | Senior Citizen Extra | Max Tenure |
|---|---|---|---|---|
| SBI | 6.80% | 7.00% | +0.50% | 10 Years |
| HDFC Bank | 6.60% | 7.00% | +0.50% | 10 Years |
| ICICI Bank | 6.70% | 7.00% | +0.50% | 10 Years |
| Kotak Mahindra | 7.10% | 7.25% | +0.50% | 10 Years |
| Post Office TD | 6.90% | 7.00% | No extra | 5 Years |
Frequently Asked Questions
How much interest for 1 lakh FD in SBI?
As of 2026, SBI offers around 6.8% - 7.0% on a 1-year FD, meaning a ₹1 Lakh deposit would earn approximately ₹7,000 - ₹7,200 in interest.
What is the maturity value of ₹1.00 Lakh Fd for 5 Years?
For a Fd of ₹1.00 Lakh over a tenure of 5 Years at an expected rate of 7%, the estimated maturity value is ₹1,40,255. This includes a total investment of ₹1.00 Lakh and earned returns of the calculated growth.
Which bank offers the highest FD rate in India 2026?
As of early 2026, Small Finance Banks (like AU, Equitas, and Unity) continue to offer the highest FD rates ranging from 8.0% to 9.25%. Major private banks (HDFC, ICICI, Kotak) offer 7.0% to 7.75%, while SBI and other PSU banks range between 6.8% and 7.3%. For the highest safety, sticking to 'Too Big To Fail' banks (SBI, HDFC, ICICI) is recommended for amounts significantly exceeding the ₹5 lakh insurance limit.
What is the latest bank FD interest rate for 2026?
As of early 2026, major Indian banks like SBI, HDFC, and ICICI are offering FD rates between 6.5% and 7.5% for regular citizens, with senior citizens getting an additional 0.50%. Smaller private banks and small finance banks may offer higher rates up to 8.5%.
How much will my FD of ₹1L be worth in 5 years?
At an interest rate of 7%, your Fixed Deposit (FD) of ₹1L will grow to approximately ₹1.41 L over a tenure of 5 years. This includes the principal and the quarterly compounded interest.
Which bank offers the highest FD rate in India (May 2026)?
Currently, Small Finance Banks (SFBs) like Unity, Equitas, and AU Small Finance Bank typically offer the highest rates, often crossing 8%. Among major banks, HDFC and ICICI often lead for specific tenures like 15-18 months.
Is my bank FD safe? What is the DICGC insurance limit?
Yes, bank FDs are extremely safe. Every bank in India is insured by the Deposit Insurance and Credit Guarantee Corporation (DICGC). In the rare event of a bank failure, your deposits (principal + interest) are insured up to ₹5 Lakh per bank.
How is FD interest calculated? Quarterly vs Monthly payout?
Most banks use quarterly compounding to calculate FD interest. If you choose a 'Cumulative' FD, the interest is reinvested every quarter. If you choose 'Non-Cumulative', you can receive payouts monthly or quarterly, but the total interest earned will be slightly lower.
Can I save tax with a Fixed Deposit? (Section 80C rules)
Yes, you can invest in a 'Tax-Saving FD' with a mandatory 5-year lock-in period. These qualify for a deduction up to ₹1.5 Lakh under Section 80C. However, interest earned on these FDs is still taxable.
⚠️ Disclaimer
The figures provided by this calculator are estimates based on the inputs you provide and standard financial formulas. STOCKCALC.IN does not offer investment advice. Please consult a qualified financial advisor before making any investment decisions.