Monthly Interest on a ₹10 Lakh Fixed Deposit

If you plan to invest a substantial amount, like ₹10 Lakhs, in a fixed deposit (FD), you need to compare the interest rates across issuers and choose a suitable tenure. After all, your interest earnings depend on the tenure you choose and the FD rate.

 

For instance, the ₹10 Lakh FD interest per month at 8% p.a. for a tenure of 5 years will be ₹6,666 with a total interest earning of ₹4.69 Lakhs.

 

Likewise, choosing a tenure of 3 years for the same FD amount at 8% p.a. will generate a monthly interest payout of ₹6,666. However, the interest earned per annum will come down when you choose a shorter timeline, which in this case will be ₹ 2.59 Lakhs.

Refer to this table to know the ₹10 Lakh FD interest per month for a tenure of 5 years.

In 2024, the monthly interest for a ₹10 Lakh FD with a bank or NBFC varies depending on their policies. Review the rates and potential monthly payouts over a 5-year period.

Here’s a table outlining the maturity amounts for an investment of ₹10 Lakhs at an interest rate of 8.05% p.a. The breakdown is provided for various tenures:

As mentioned, you need to pay tax on your interest earnings in case it crosses a certain threshold. Therefore, if you plan on investing in a fixed deposit, ensure you are aware of taxation rules. Here is what you need to know: 

• The interest amount is exempt from taxation if the annual earnings does not exceed ₹40,000

• For senior citizens, this limit extends to ₹50,000 

• A TDS of 10% is levied if the interest amount goes beyond the prescribed threshold

• A TDS of 20% is levied if you do not submit your PAN card details

The online fixed deposit interest calculator can help you calculate the interest from an FD for various tenures. To get accurate results within a few seconds, enter these details into the digital tool:

• Principal amount

• Investment tenure

• Interest rate

Maturity Amount Calculation Example 

If you invested ₹10 lakhs in an FD at an interest rate of 8.40% p.a. for a period of 3 years, here's how you can manually calculate the monthly interest earned:

• Monthly Interest Earned = Principal × Interest Rate / 12

• Monthly Interest Earned = ₹10,00,000 × 8.40% / 12

• Monthly Interest Earned = ₹10,00,000 × 0.084 / 12

• Monthly Interest Earned = ₹84,000 / 12

• Monthly Interest Earned = ₹7,000

 

So, the monthly interest earned on an FD of ₹10 lakhs at 8.40% p.a. would be ₹7,000.

 

Interest Earned Upon Maturity

• Interest Earned on Maturity = ₹7,000 × 36

• Interest Earned on Maturity = ₹2,52,000

 

The total interest accumulated over the 3-year tenure would amount to ₹2,52,000.

 

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

While most banks and NBFCs permit premature FD withdrawals, it may be subject to a penalty. This may include reduced interest rates and premature withdrawal fees, typically ranging from 0.5% to 1% of the amount withdrawn. The interest rate applied will depend on the completed tenure at the time of withdrawal.

FD Premature Withdrawal Example

If you invest ₹10 lakhs in an FD with a 3-year tenure at an interest rate of 8% p.a., but decide to withdraw prematurely after 1 year, the interest rate will change. The applicable rate for the 1-year period would be 7.00% p.a. After applying a 1% penalty for premature withdrawal, the final interest rate reduces to 5.00% p.a., leading to lower 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.