You may have ₹1 Lakh set aside from savings, a bonus, or idle cash sitting in your bank account. If you’re looking for a safe short-term investment, a 1-year fixed deposit (FD) can be an attractive option. It preserves your capital, locks in guaranteed returns, and avoids the uncertainty of market-linked products.
But how much will you actually earn from a ₹1 Lakh FD for 1 year? The returns depend on a few key factors:
- The FD interest rate offered by the issuer for the selected tenure
- The payout option you select (cumulative or non-cumulative)
- Whether you are a regular investor or senior citizen
In this article, we’ll break down how you can estimate the potential interest and maturity value from a ₹1 Lakh FD for 1 year. We will also cover how you use an FD calculator to simplify calculations and how you can book a a ₹1 Lakh FD for 1 year on GoldenPi.
How Are FD Returns Calculated?
Depending on the type of FD scheme selected, FD interest can be calculated using one of the following methods:
Simple Interest Method
The formula for simple interest is:
| SI = (PxRxT)/100 |
Here,
P is Principal
R is the Rate of Interest
T is the Tenure
Compound Interest Method
The formula for compound interest is:
| A = P(1 + R/N)^(N×T) |
Here,
P is Principal
R is the Rate of Interest
T is the Tenure
N is the Number of Times the Amount is Compounded
While you can compute return estimates manually, doing so will require a lot of time and effort. It will also have a high margin for error. That’s why using a digital FD return calculator tool is a much better alternative.
How to Use a FD Returns Calculator for Your ₹1 Lakh FD
FD return calculators make it easier to estimate your FD returns on a ₹1 Lakh FD for 1 year. Instead of spending hours trying to calculate your FD returns manually, you can simply use this digital tool to get the estimate in seconds.
GoldenPi also offers FD return calculators for each bank and NBFC listed on the platform. So, let’s say, you want to estimate FD returns on a Suryoday Small Finance Bank FD. All you have to do is open the Suryoday Small Finance Bank FD page pn the GoldenPi platform and use the FD calculator listed on the page to estimate your 1-year returns.
Here’s a simple guide to help you understand how to use a FD calculator to estimate your returns:
- Enter the investment amount: Type ‘₹1 Lakh’ in the investment amount field.
- Select the FD tenure: Choose ‘12 months’ (1 year) from the drop-down list in this field.
- Choose your depositor type: Use the toggle button to select whether you are a regular investor or senior citizen. Make sure this is correct because rates may change based on your investor type.
- Select your interest payout option: Choose whether you want to receive the interest amount at maturity or on a monthly/quarterly/half-yearly/yearly basis.
Once that’s done, the tool will use this information to estimate:
- The total interest accrued
- The maturity value of your ₹1 Lakh FD after 1 year
Please note that the calculator applies the latest interest rate from the selected issuer on your ₹1 Lakh FD for 1 year (based on your tenure and investor type). This the simplest process of estimating FD returns.
How Much FD Returns Can You Get on a ₹1 Lakh FD for 1 Year
As mentioned earlier, the returns on a ₹1 Lakh FD for 1 year depend on the issuer, investor type, interest rate, and payout option. Cumulative FDs (paid at maturity) offer compounding benefits, while non-cumulative FDs pay regular interest.
On GoldenPi, you can compare cumulative FD options from leading banks and NBFCs. Lets have a look at the latest FD interest rates offered by these issuers for both regular customers and senior citizens and how the interest yield and maturity amount can vary:
-
Returns on ₹1 Lakh Fixed Deposit for 1 Year: Regular Customers
| FD Issuer | Amount Invested | FD Rates for General Customers (1 Year) | Total Interest | Maturity Amount (Received After 1 year) |
|---|---|---|---|---|
| Suryoday Small Finance Bank | ₹1,00,000 | 7.40% p.a. | ₹7,607.89 | ₹1,07,607.89 |
| Unity Small Finance Bank | ₹1,00,000 | 6.50% p.a. | ₹6,660.16 | ₹1,06,660.16 |
| Shriram Finance | ₹1,00,000 | 7.00% p.a. | ₹7,000 | ₹1,07,000 |
| Mahindra Finance (Samruddhi Scheme) | ₹1,00,000 | 6.60% p.a. | ₹6,600 | ₹1,06,00 |
| Bajaj Finance | ₹1,00,000 | 6.60% p.a. | ₹6,600 | ₹1,06,00 |
Note: The above FD rates are valid as of September 24, 2025. The rates are subject to change. Investors must do their own research before investing.
-
Returns on ₹1 Lakh Fixed Deposit for 1 Year: Senior Citizens
| FD Issuer | Amount Invested | FD Rates Senior Citizens (1 Year) | Total Interest | Maturity Amount (Received After 1 Year) |
|---|---|---|---|---|
| Suryoday Small Finance Bank | ₹1,00,000 | 7.60% p.a. | ₹7,819.36 | ₹1,07,819.36 |
| Unity Small Finance Bank | ₹1,00,000 | 7.00% p.a. | ₹7,185.9 | ₹1,07,185.9 |
| Shriram Finance | ₹1,00,000 | 7.50% p.a. | ₹7,500 | ₹1,07,500 |
| Mahindra Finance | ₹1,00,000 | 6.85% p.a. | ₹6,850 | ₹1,06,850 |
| Bajaj Finance | ₹1,00,000 | 6.95% p.a. | ₹6,950 | ₹1,06,950 |
Note: The above FD rates are valid as of September 24, 2025. The rates are subject to change. Investors must do their own research before investing.
Tax Implications on a ₹1 lakh FD for 1 Year
When estimating how much you will earn on a ₹1 lakh FD for 1 year, you also need to account for the tax treatment of your returns to understand post-tax yields. Firstly, the interest you earn on your 1-year FD is completely taxable. It is added to your annual income and taxed as per your income tax slab under ‘Income from Other Sources’.
A 10% TDS is deducted by banks and NBFCs if your total FD interest earnings exceed ₹40,000 (₹50,000 for senior citizens) in a financial year. If your PAN is not uploaded, the rate rises to 20%.
However, if your total annual income is below the taxable limit, you can submit Form 15G (Form 15H for seniors) to avoid deductions of TDS.
Benefits of a 1-Year FD
A 1-year fixed deposit is a popular short-term investment option for risk-averse investors. The benefits of a 1-year FD are listed below:
1. Low Risk Investment:
1-year FDs are considered a safe investment option for investors looking for capital preservation. Bank FDs of up to ₹5 Lakhs is protected under the DICGC insurance cover, while corporate FDs come with credit ratings to help you understand their risk levels.
2. Guaranteed Return:
Unlike market-linked products, FD interest rates do not change during the tenure. They get locked-in on the day you book the deposit and remain the same throughout the investment tenure. So, you know exactly how much you will earn at the end of the 1-year period.
3. Easy Liquidity:
When you book a ₹1 Lakh FD for 1 year, you get to enjoy the perks of easy liquidity. Banks and NBFCs also allow premature withdrawals against nominal penalty charges. So, if you’re likely to need the ₹1 Lakh within the next 12 months, opening a 1-year FD may be prudent.
4. Flexible Payout Options:
You can choose between a cumulative (interest paid at maturity) or non-cumulative (interest paid at regular intervals) 1-year FD. If you need regular income, you can choose from monthly, quarterly and half-yearly payout options.
5. Better Returns Than Savings Accounts:
Savings bank accounts offer nominal interest on deposits ranging from 2.50%-3%. On GoldenPi, you can book RBI approved FDs with interest of up to 8.4%.
Book Your ₹1 Lakh FD for 1 year with GoldenPi in Under 5 Minutes!
Now that you know how to estimate your returns from a ₹1 Lakh FD for 1 year, you can book your FD with GoldenPi. GoldenPi is a SEBI-registered debt broker and OBPP (Online Bond Platform Provider). On the GoldenPi platform, you can compare FD interest rates from the following issuers and book your FD in minutes:
- Suryoday Small Finance Bank
- Unity Small Finance Bank
- Bajaj Finance
- Mahindra Finance
- Shriram Finance
Just select your preferred issuer, complete your KYC, and transfer the amount. That’s how simple it is! Moreover, since the entire process is online, you can book a ₹1 Lakh FD for 1 year without worrying about branch visits and any physical paperwork!
Returns on ₹1 Lakh FD for 1 year FAQs
1. How much return will I get on a ₹1 Lakh FD for 1 year?
Returns on a ₹1 Lakh FD for 1 year depends on the FD interest rate offered by the bank/NBFC and customer type. For instance, if you invest ₹1 Lakh in a Suryoday Small Finance FD as a regular investor, you may earn interest at 7.40% p.a. In this case, your returns may be ₹7,607.89.
2. How do banks determine 1-year FD interest rates?
Banks set 1-year FD interest rates based on RBI repo rate, market liquidity, and deposit demand.
3. Can I pick a payout frequency for my 1-year FD?
Yes. You can choose payout frequency in a 1-year FD. Non-cumulative FDs pay monthly, quarterly, half-yearly, or annually, while cumulative FDs pay interest at maturity with compounding benefits for higher returns.
4. How can I calculate FD interest on a ₹1 Lakh FD for 1 year?
You can calculate FD interest using a digital FD calculator tool. You simply need to enter the investment amount, tenure, customer type, and payout frequency. The FD return calculator then uses the applicable FD interest rate to estimate your returns.
5. Can I avoid TDS deduction on my ₹1 Lakh FD for 1 year?
Yes. If your annual income is below the taxable limit, you can avoid TDS on FD interest by submitting Form 15G (15H for seniors).
Disclaimer:
This information is for general information purposes only. GoldenPi makes no guarantee on the accuracy of the data provided here; the information displayed is subject to change and is provided on an as-is basis. Nothing contained herein is intended to or shall be deemed to be investment advice, implied or otherwise. Investments in the securities market are subject to market risks. Read all the offer-related documents carefully before investing.
Fixed Deposit schemes are regulated by the Reserve Bank of India. GoldenPi Securities Private Limited is a registered debt broker and acts as a distributor and not as a manufacturer of the product.
