Monthly Interest on a ₹50,000 Fixed Deposit for 5 Years

The tenure and the interest rate you choose can significantly impact the earnings on a ₹50,000 fixed deposit (FD). Let's consider a ₹50,000 fixed deposit for 5 years.

 

For example, with an interest rate of 9% p.a. over 2 years, you would earn a monthly interest payout of ₹375, resulting in a total interest of approx. ₹9,000 over the tenure. 

 

If you need a higher total interest, consider a longer tenure or pick an issuer that offers a better rate.

Here is a breakdown of the monthly interest payout you could receive on an  ₹50,000 FD for 5 years across interest rates: 

Since FD rates offered by banks and NBFCs vary, it's important to compare different options before investing. Here are the potential interest payouts you may receive from some financial institutions if you invest ₹50,000 for 3 years:

Here is a breakdown of the monthly interest payout you may receive when you book a fixed deposit of ₹50,000 for 1 year. 

Check the following table to learn about the impact on your ₹50,000 FD monthly interest earnings if you opt for a tenure of 5 years: 

The following table provides an overview of the monthly payouts you may receive on a ₹50,000 FD for 10 years: 

Here’s a table outlining the maturity amounts for an investment of ₹50,000 at an interest rate of 7.40% p.a. The breakdown is provided for various tenures:

You can use the FD calculator on Bajaj Markets to compute your monthly earnings. Else, you could manually calculate the monthly ₹50,000 FD interest. 

 

The ₹50,000 fixed deposit for 5 years calculator involves the steps given below: 

1. Calculate the total interest amount using either the simple or compound interest formula based on the bank or NBFCs policy 

2. Divide the total interest amount by the number of months in your FD tenure

Maturity Amount Calculation Example

Assume fixed deposit interest rates for ₹50,000 is 7.40% p.a. for a period of 3 years (36 months). 

• Monthly Interest Earned = Principal × Interest Rate / 12

• Monthly Interest Earned = ₹50,000 x 7.40% / 12

• Monthly Interest Earned = ₹50,000 x 0.074 / 12

• Monthly Interest Earned = ₹308.33

 

The ₹50,000 interest per month at 7.40% p.a. would be ₹308.33

 

Interest Earned Upon Maturity

• Interest Earned On Maturity = Monthly Interest × Number of Months

• Interest Earned on Maturity = ₹308.33 x 36

• Interest Earned on Maturity = ₹11,100

 

The total interest accumulated over the 3-year tenure would amount to ₹11,100, with a monthly payout of ₹308.33

 

Note: Check the formula used by the bank or NBFC to get an accurate estimate.

The bank or NBFC applies Tax Deducted at Source (TDS) based on your tax slab rates if your interest income exceeds ₹40,000 in a financial year. For senior citizens, TDS applies only when interest payouts cross ₹50,000 in a financial year. It is unlikely that the total interest income will exceed this limit for an FD of ₹50,000. 

Premature withdrawal involves taking out funds from a fixed deposit before its maturity. While this is allowed for callable FDs, it can impact your returns. Banks and NBFCs may reduce the interest rate and impose a penalty charge, usually between 0.5% and 1% of the withdrawn amount, leading to lower overall earnings. 

FD Premature Withdrawal Example

As we saw ₹50,000 FD for 5 years, if you invest ₹50,000 in an FD with a 3-year tenure at an interest rate of 7.40% p.a. However, you choose to withdraw it prematurely after 1 year and the interest rate is reduced to 6.40% p.a. Additionally, with a 1% penalty for early withdrawal, the final interest rate drops to 5.40% p.a., leading to lower-than-expected returns.

The information provided by BFDL is related to the rates provided by Banks and Deposit taking NBFCs as available from public domain and under no circumstances is intended to be source of advice or recommendation of any financial investment advice or endorsement of any sort. BFDL disclaims any responsibility or liability regarding inaccuracies, omissions, mistakes etc. as well as offers and use of such information set out is entirely at the User’s own risk and User should exercise due care prior taking of any decision, on the basis of information mentioned hereinabove. Display of any intellectual property along with the related product information does not imply BFDL’s partnership with the owner of the intellectual property of such products and is solely for the purpose of information, unless otherwise provided by BFDL.