1 Lakh FD Interest for 1 Year 2026

Fixed Deposits (FDs) offer a safe and hassle-free way to grow your savings. However, to make the most of your investment, you need to compare FD rates across banks and NBFCs before locking in your funds.

Your ultimate earnings from FD investments depend on the tenure of the investments and the applicable rates. Let us understand how FD returns work with an easy example. 

Suppose an individual over 60 years old opens an FD account with Utkarsh SF Bank and deposits ₹1 lakh at an 8.6% yearly interest rate. His ₹1 lakh FD interest for 1 year at 8.6% will be  ₹8,881.35. The maturity amount will become ₹1,08,881.35 after the tenure.

Sounds like a great return, right? You can explore similar high-return FDs on Stable Money and start investing smartly today!

On the other hand, if you choose any non-partner bank, for instance HDFC Bank, you will receive an interest of 7.10% if you are a senior citizen. For the general public, the rate becomes 6.60%. Therefore, the maturity amount for senior citizens becomes ₹1,07,292. For a general citizen, the total amount on maturity will be ₹1,06,766. 

₹1 Lakh FD Interest for 1 Year by Top Banks and NBFCs in 2026

Due to the varying policies of banks and NBFCs, the FD interest rate also varies. Take a look at the table below and compare the payouts by the top FD providers:

For more impressive FD options, download the Stable Money app from your app store today! Calculating monthly interest for a ₹1 lakh FD is now easy with our FD calculator. Check the in-app FD interest charts and compare FD rates with non-partner banks within seconds. 

Applicable TDS on ₹1 Lakh FD Interest for 1 Year in 2026

You need to pay a certain amount as Tax Deducted at Source (TDS) on earnings from FD after a certain limit. Below are more details about the applicable TDS on ₹1 lakh FD interest for 1 year as of 2026:

• You do not need to pay a TDS if your total interest amount from FD is less than ₹40,000.
• If you fall in the senior citizen category, you do not need to pay TDS on interest amounts up to ₹50,000.
• You become liable to pay TDS of 10%, if your total earning from an FD exceeds the set threshold. 
• Note that if you do not provide PAN, the TDS amount upon exceeding the threshold becomes 20%.

Penalty Imposed for Withdrawing an Fixed Deposit Before Maturity

Investing and earning from ₹1 lakh FD interest for 1 year is an excellent investment option but you should be aware of applicable penalties. Banks allow FD investors to withdraw FD amounts and close the account before maturity referred to as a premature withdrawal. 

In such scenarios, you need to pay a certain amount as a penalty to your FD provider. Such penalty amounts usually range between 0.5% to 1%. However, some FD providers allow investors to prematurely withdraw FD amounts without a penalty. 

Important Points to Remember While Investing ₹1 Lakh in FD for 1 Year 

Before earning from ₹1 lakh FD interest for 1 year, remember these important points:

1. Rate of FD Interest

It is the primary factor that decides your total earnings from an FD upon maturity. Different FD providers, like banks or NBFCs, offer different FD rates. Thus, you must choose the highest interest provider and invest in FD. 

1. FD Investment Tenure

Check the investment tenure before creating your FD account, as FD tenure might vary from bank to bank. You can open an FD account for 1 year and even for 10 years, depending on your financial goals. FD providers also offer FD options for 7 days as well. 

1. Loan Against a Fixed Deposit

Apart from earning interest from ₹1 lakh FD interest for 1 year, you can get a loan against your FD. You can use your FD investment amounts as collateral and get a loan when you need funds. Most providers allow a maximum of 90% of your deposited principal amount as a loan. 

1. Check for Nomination Facility

A sole depositor should add a nominee when opening a FD account. In case of the demise of the FD holder, the nominee can claim the matured FD amount with the earned interests. 

When using our Stable Money app, you can easily add a nominee as per your choice when creating an FD. Our user-friendly app makes the FD investment process easy so that you don’t miss out on any important FD requirements. 

With Stable Money, you can start your investment journey with fixed deposits and earn up to  8.6% FD interest from Utkarsh SF Bank.