A fixed deposit’s monthly interest depends on the deposit amount, tenure and interest rate. For a principal of ₹1 lakh, monthly interest can be approximated by multiplying the annual rate by the principal and dividing by 12. The table below illustrates approximate monthly interest earnings at different interest rates.
| Annual interest rate | Approx. monthly interest on ₹1 lakh |
|---|---|
| 5% | ₹416.67 |
| 6% | ₹500.00 |
| 7% | ₹583.33 |
| 8% | ₹666.67 |
To compute your exact monthly interest, multiply the annual rate by your deposit amount and divide by 12. Note that banks may compound interest quarterly or annually, so actual earnings can differ slightly.
