₹1 Lakh FD Interest for 5 Years - Interest and Earning Calculation

Looking for a Fixed Deposit option that generates a higher return than your savings account? The first step is to compare interest rates from different banks and FD providers. Choosing the right FD ensures maximum benefits on your investment.

Let us understand this easy explanation:

Suppose a retired individual, i.e. a senior citizen, is opening an FD with Suryoday SF Bank to earn from a 1 lakh FD interest for 5 years. Upon maturity, the individual will receive a maturity amount of ₹1,56,815.78 at 9.10%. This means his total interest payout will be ₹56,815.78. 

This is such an impressive return on investment for an FD, right? You will find more of such high-yielding FD options with the Stable Money application. 

Now, let us compare the interest rate of Suryoday SF Bank with that of a non-partner bank of Stable Money. For example, suppose that the same individual creates an FD with Bandhan Bank of ₹1 lakh for 5 years at 8.55%. After 5 years, he will get a total interest payment of ₹52,653, and that will create a corpus of ₹1,52,653.

As seen in the example, a slight difference in interest rates can significantly impact your final maturity amount. By comparing rates, you can make an informed decision and maximise your returns.

₹1 Lakh FD Interest for 5 Years by Popular Banks and NBFCs in 2025

Due to varying policies by FD providers like banks and NBFCs, the interest rate also varies. Take a look and compare the interest rates by popular FD providers from the table below:

Calculating monthly interest for a ₹1 Lakh FD is now easier. You can refer to our FD calculator on our website to instantly check and compare the FD rates by different banks and NBFCs. While creating an FD from the Stable Money app, you can check your interest payout and total amount after maturity under each bank. 

TDS on ₹1 Lakh Fixed Deposit for 5 Year

Both senior and regular citizens need to pay a certain amount as a TDS after the total interest per annum exceeds a certain threshold. Before investing and earning from a ₹1 lakh FD interest for 5 year, take a look at the conditions of TDS:

• If your total income from the interests from FDs is less than ₹40,000 in a year, you are not liable for paying TDS.
• For senior citizens, this threshold is ₹50,000, meaning you do not need to pay TDS up to this threshold.
• If your earnings from FD interests exceed the thresholds, you become liable to TDS and need to pay 10% extra on your earnings.
• If you do not produce your PAN, you need to pay 20% TDS on your extra income from FDs.

Applicable Penalty Charges on Premature Closure of Fixed Deposits

Financial emergencies might occur at any time, and you might need to break your FD before maturity. Therefore, before earning from a ₹1 lakh FD interest for 5 years, you should be aware of penalty charges by banks or NBFCs. 

FD providers like banks, Post offices, and NBFCs impose a penalty charge between 0.5% and 1% for a premature FD withdrawal. This reduces your potential earnings from your FDs upon maturity. 

With Stable Money, you get the flexibility of zero penalty charges on certain FDs. For example, IndusInd Bank (via Stable Money) allows penalty-free premature withdrawals after just 7 days of FD creation.

Important Factors to Remember Before Investing in FDs

Below are a few key pointers you should know about an FD investment to fetch maximum benefits:

1. Rate of Yearly FD Interest

To earn from FDs, you should focus on the highest interest rate per annum by banks or NBFCs. This will ensure maximum benefits or return on investment upon their maturity.

You can earn up to 9.10% from Suryoday SF Bank with Stable Money. Also, if a senior citizen woman opens an FD with Shriram Finance, she gets an additional 0.10% interest. 

1. Remember to Add a Nominee

Do not forget to add a nominee to your FD account. This will secure your family’s financial future in case of an untimely demise.

Therefore, you can add one of your parents, spouse, siblings, etc., while creating an FD. In case of an unfortunate event, they can claim the maturity amount from the FD account.

1. Clauses for Premature Withdrawal

Breaking an FD before maturity often comes with penalty charges imposed by banks and NBFCs. Some FDs have a lock-in period before you can make a withdrawal.

However, Stable Money’s partner banks and NBFCs, like IndusInd Bank, allow penalty-free withdrawals after just 7 days.

1. Ask for a Loan Against Your FD

Instead of premature FD withdrawal and lowering interest, you should go for a loan against FD. Many FD providers offer loans at an interest rate of just 2% higher than the FD rate, with up to 95% of the FD amount available as a loan. This allows you to access funds while continuing to earn interest on your FD.

Earn higher returns on your ₹1 lakh FD interest for 5 years with Suryoday Small Finance Bank through Stable Money. Senior citizens can enjoy an attractive 9.10% interest rate and regular citizens can earn a competitive 8.60% interest rate annually.

Maximise your savings with the best FD rates—invest today with Stable Money!