Monthly Interest on a ₹1.5 Crore FD in 2024

Fixed deposits present a lucrative opportunity for investors who have a large corpus available since they can take advantage of flexible interest payouts. By investing ₹1.5 Crores in an FD with a monthly interest payout option, you could utilise the returns to fulfil certain financial obligations.

 

Let’s make you understand this with an example. For instance, with a 6.5% p.a. interest rate on an FD of ₹1.5 Crores for 5 years, you could earn as much as ₹81,250 each month. Similarly, if you book an FD for the same amount and same tenure at a rate of 8%, your monthly earnings will be ₹1 Lakh. 

 

Hence, it’s important to compare the interest on ₹1.5 Crore FD offered by trusted FD issuers before booking a fixed deposit. This could help you choose an issuer that offers the most lucrative returns.

Check the following table to understand the ₹1.5 Crore FD interest per month at different rates for a tenure of 5 years.

Note: These values are for illustrative purposes only. The actual values may vary based on the investment terms.

Refer to the table below for monthly interest on ₹1.5 Crore FD for 5 years from some of the top banks and NBFCs.

Note: The above rates may change at the bank or NBFCs discretion. These rates are valid as of 19th June 2024. 

Here's a table outlining the maturity amounts for a ₹1.5 Crore FD at an interest rate of 6.50% p.a. See how the yearly payout differs across tenures.

Note: The figures above are for illustration purposes only. Actual interest rates and payouts may vary across different banks and NBFCs.

Non-resident Indians (NRIs) have the option to invest in fixed deposits through Non-resident External (NRE) and Non-resident Ordinary (NRO) accounts provided by banks and NBFCs. Below are the interest rates for NRE and NRO fixed deposits.

Withdrawing funds from your fixed deposit before it reaches maturity can lead to reduced income. Premature withdrawal can affect your returns in several ways. The bank or NBFC may offer a lower interest rate than initially agreed upon. In some cases, they may also impose an additional penalty on the amount withdrawn.

FD Premature Withdrawal Example

If you invest ₹1.5 Crores in a fixed deposit at an interest rate of 6.50% p.a. for a 3-year tenure, the interest rate is fixed for that period. However, if you decide to withdraw the funds prematurely after 1 year, the applicable interest rate for that period would drop to 5.50% p.a. Additionally, with a 1% penalty for early withdrawal, the final interest rate would further reduce to 4.50% p.a., significantly lowering your expected returns.

Note: The figures above are for illustration purposes only. The actual penalty charges may vary depending on the bank or NBFC’s policies.

Apart from the earning potential, consider the tax implications associated with these investments. The following are some of the important regulations to keep in mind:

• The bank or NBFC will levy a Tax Deducted at Source (TDS) at 10% if your annual interest income exceeds ₹40,000

• Senior citizens have a higher TDS exemption limit on FD interest of up to ₹50,000 in a year

• Submit Form 15G (for investors under 60 years) or Form 15H (for senior citizens) to avoid a deduction if your income is below the taxable limit

• The bank or NBFC will deduct TDS at 10% if you have provided PAN details

• If you have not furnished your PAN card, bank or NBFC will deduct TDS at 20% 

To get an estimate of your returns, use an FD calculator. To compute ₹1.5 Cr FD interest per month, follow the steps provided below:

1. Enter the investment amount, tenure, and interest rate

2. Opt for the ‘Monthly’ option under the ‘Interest Payout’ category

3. Check the estimate of total and monthly interest earnings

Maturity Amount Calculation Example

If you invest ₹1.5 Crores in a fixed deposit for a 2-year period (24 months) at an interest rate of 7.50% p.a., the monthly interest can be calculated as follows:

• Monthly Interest Earned = Principal × Interest Rate / 12

• Monthly Interest Earned = ₹1,50,00,000 × 7.50% / 12

• Monthly Interest Earned = ₹11,25,000 / 12

• Monthly Interest Earned = ₹93,750

The monthly interest on an FD of ₹1.5 Crores at 7.50% p.a. would be ₹93,750.

 

Total Interest Earned Upon Maturity

• Total Interest Earned = Monthly Interest × Number of Months

• Total Interest Earned = ₹93,750 × 24

• Total Interest Earned = ₹22,50,000

 

The total interest earned over the 2-year tenure would amount to ₹22,50,000, with consistent monthly payouts of ₹93,750.