Can a ₹15 lakh FD generate ₹1 lakh annual income? Here's the simple calculation
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- A ₹15 lakh FD requires a 6.67% annual interest rate to generate exactly ₹1 lakh in income, per the formula ₹1,00,000 ÷ ₹15,00,000 × 100.
- Public sector bank FD rates currently range from 6% to 6.8%, with only a few institutions and tenures offering rates at or above the 6.67% threshold needed for the ₹1 lakh target.
- BankBazaar.com compiled the underlying rate data from respective bank websites as of June 26, 2026, covering deposits under ₹3 crore.
- FD income is taxed per the applicable income tax slab, making pre-tax versus post-tax return comparison essential before treating an FD as a viable annual income tool.
- Fixed deposits are framed in the article as a preferred investment amid current geopolitical tensions, with the US-Iran dispute cited as a driver of equity market volatility pushing investors toward predictable returns.
Why it matters: For the common investor targeting ₹1 lakh annual income from a ₹15 lakh deposit, only a narrow band of bank-tenure combinations currently clears the 6.67% rate bar, so rate shopping and tax-adjusted yield analysis become the deciding factors — not the headline rate alone — before locking in.
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