Can a ₹15 lakh FD generate ₹1 lakh annual income? Here's the simple calculation
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- Public sector banks in India offer fixed deposit rates ranging from 6% to 6.8%, according to data from BankBazaar.com compiled from bank websites as of June 26, 2026 for deposits below ₹3 crore.
- A ₹15 lakh fixed deposit requires a minimum interest rate of 6.67% per annum to produce ₹1 lakh in annual income, calculated as ₹1,00,000 ÷ ₹15,00,000 × 100.
- Only a few financial institutions and tenures currently offer FD rates close to or exceeding the 6.67% threshold needed to hit the ₹1 lakh annual target.
- Fixed deposit returns in India are taxed as per the investor's applicable income tax slab, and the article stresses comparing pre-tax and post-tax yields before committing funds.
- The analysis frames Indian FDs as a preferred refuge for retail investors seeking predictable returns while global equity markets swing on the US-Iran dispute.
Why it matters: Indian investors targeting ₹1 lakh annual income from a ₹15 lakh FD can only clear the bar at rates of 6.67% or above, meaning today's public sector bank range of 6-6.8% leaves only select tenures qualifying — and income tax on the interest shrinks the actual take-home further, making rate comparison and tax planning essential before locking in.
