Monthly Interest on a ₹1 Crore FD

Investing a sizable amount in a ₹1 Crore fixed deposit (FD) is a great way to access a steady income. For a tenure of 5 years, the ₹1 Crore FD interest per month can go up to approximately ₹66,666 at an interest of 8%, yielding ₹46.9 Lakhs as total interest earned.

 

Similarly, if you choose a tenure of 2 years for the same FD amount at 8% p.a., it will yield a monthly interest payout of approximately ₹66,666. However, the interest earned per annum will come down if you choose a shorter timeline, which in this case will be ₹16.6 Lakhs. Your interest earnings depend on the tenure you choose and the FD rate. 

 

This makes FD an attractive choice if you are seeking assured returns while maintaining liquidity. For higher gains, compare your options before you invest. 

Refer to this table to know the ₹1 Crore FD interest per month for a tenure of 5 years in India: 

Note: The interest payouts mentioned above are indicative. Your actual returns may vary depending on the bank or NBFCs policies.

When evaluating NBFC FDs and bank FDs, ₹1 Crore FD interest per month is a critical check. The table below shows the monthly interest on a ₹1 Crore FD booked for 5 years with the below financial institutions. 

Note: The above interest rates are valid as of 5th June 2024. They may change at the bank or NBFCs’ discretion.

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

Note: The above-mentioned rates are subject to change at the bank or NBFC's discretion.

Here’s a table outlining the maturity amounts for an investment of ₹1 Crore at an interest rate of 8.97% p.a. The breakdown is provided for various tenures:

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

You can use an FD calculator to determine monthly interest on a ₹1 Crore FD. All you need to do is add the principal amount, interest rate, and tenure. Some calculators may require you to add details about senior citizen benefits, if any.

 

In addition, you could manually calculate a ₹1 Crore FD monthly interest. Follow these simple steps to calculate the estimated interest:

1. Use the simple or compound interest formula based on the bank or NBFCs policy 

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

Maturity Amount Calculation Example

Assume you invested ₹1 Crore in an FD with an interest rate of 8% p.a. for a period of 4 years (48 months). Here’s how you can manually calculate the monthly interest earned:

• Monthly Interest Earned = Principal × Interest Rate / 12

• Monthly Interest Earned = ₹1,00,00,000 × 8% / 12

• Monthly Interest Earned = ₹1,00,00,000 × 0.08 / 12

• Monthly Interest Earned = ₹8,00,000 / 12

• Monthly Interest Earned = ₹66,666.67

 

So, the monthly interest earned on an FD of ₹1 Crore at 8% p.a. would be ₹66,666.67.

Interest Earned Upon Maturity

• Interest Earned On Maturity = (Principal x Interest Rate / Months in a year) x Months in 4 years

• Interest Earned on Maturity = ₹66,666.67 × 48

• Interest Earned on Maturity = ₹32,00,000

 

The total interest accumulated over the 4-year tenure would amount to ₹32,00,000.

 

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

Premature withdrawal allows you to access your ₹1 Crore fixed deposit before maturity. It typically incurs penalties such as reduced interest rates or a fee. The rate applied depends on the completed tenure at withdrawal, and banks or NBFCs may reduce rates or charge a penalty of 0.5% to 1% of the withdrawn amount.

FD Premature Withdrawal Example

If you invest ₹1 crore in an FD with a 4-year tenure at an interest rate of 6.50% p.a., but choose to withdraw it prematurely after 2 years, the interest rate will change. The applicable interest rate for the 2-year period would be 6.00% p.a. However, with a 1% p.a. penalty for premature withdrawal, the final interest rate drops to 5.00% p.a., leading to lower returns than originally expected.

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

Before investing in a fixed deposit, check your tax obligations and estimate your actual earnings. Here are a few things you need to know:

• Banks and NBFCs will deduct Tax Deducted at Source (TDS) if your income exceeds ₹40,000 in a year

• For senior citizens, this limit applies to payouts that cross ₹50,000 in a year

• TDS is deducted at 10% if you have furnished PAN details

• TDS is deducted at 20% if PAN details have not been submitted

• Present forms 15H or 15G if your income falls under the taxable bracket to avoid TDS  

• Claim tax deductions on investments made in tax-saving FDs provided by banks

• Tax-saving FDs are eligible for deductions up to ₹1.5 Lakhs in a financial year under Section 80C of the Income Tax Act, 1961