How much should I invest in an FD at a salary of ₹1 lakh per month?

No matter what your monthly income is, you can begin your investment journey with a Fixed Deposit. Even with a modest amount set aside regularly, building your savings is possible. If you have a monthly income of ₹1 lakh (which totals ₹12 lakhs annually), determining how much the actual amount you invest should be based on your personal financial commitments, risk profile, and future plans.

As a general rule of thumb, it is advisable to save 20-30% of your annual income as investments. This is considered an optimal saving range for salaried individuals. Going by the 20% saving rate, on a yearly salary of ₹12 lakhs, you should be able to invest roughly ₹2.4 lakhs in fixed deposits every year (₹12 lakhs x 20%).

Similarly, if you can save 30% annually, the amount available for FDs would be around ₹3.6 lakhs per annum out of your income.

So, in summary, based on a comfortable saving rate of 20-30% of your income, you should be able to make annual fixed deposits between ₹2.4-₹3.6 lakhs on your ₹1 lakh monthly salary.

Tip: Before investing, evaluate your monthly expenses, emergency fund requirements, and other financial goals. Also consider diversifying your investments for balanced growth.