Monthly Interest Payout on a ₹12 Crore Fixed Deposit

Investing ₹12 Crores in an FD with a monthly interest payout could open avenues for substantial financial benefits. This strategic move could help you grow your wealth and provide a steady income for diverse financial needs. 

 

For example, at an interest rate of 7% p.a. over a 5-year tenure, a ₹12 Crore FD interest per month would generate a monthly income of ₹7 Lakhs. Over the entire tenure, this would result in total interest earnings of ₹4.8 Crores. 

 

Similarly, if you book an FD for the same amount and same tenure at a rate of 9.50%, your monthly earnings will be ₹9.5 Lakhs and total interest earnings will be ₹6.8 Crores. 

 

As observed, it's important to compare the competitive interest rates offered by different FD issuers to ensure the best returns.

The following table illustrates how your ₹12 Crore FD interest per month varies with different interest rates over a 5-year tenure.

Refer to the table below to check the ₹12 crore FD interest per month for a tenure of 5 years across various banks and NBFCs.

As a Non-resident Indian (NRI), you can invest a substantial amount like ₹12 Crores in Non-resident External (NRE) and Non-resident Ordinary (NRO) accounts offered by banks and NBFCs. Here are the interest rates for NRE and NRO fixed deposits:

Here’s a table showing the maturity amounts for a ₹12 Crore FD investment at an interest rate of 8.25% p.a., broken down by various tenures:

Withdrawing money from your fixed deposit before maturity usually results in reduced returns on a ₹12 Crore fixed deposit interest per month. Banks and NBFCs often lower the interest rate compared to the original rate agreed upon, and most also impose a small penalty on the withdrawn amount. These factors can significantly reduce your overall earnings.

FD Premature Withdrawal Example

You invest ₹12 Crores in an FD with a 3-year tenure at an interest rate of 8.50% p.a. However, you decide to withdraw prematurely after 1 year and the interest rate for that period will be reduced to 7.50% p.a. After applying a 1% penalty for early withdrawal, the final interest rate drops to 6.50% p.a., leading to lower-than-expected returns.

Carefully assess tax implications on a ₹12 Crore FD  to get an actual estimate of your returns. Here are a few important tax regulations for FD interest income:

• If your total interest income exceeds ₹40,000 in a particular financial year, the bank or NBFC will deduct a Tax Deducted at Source (TDS) at 10% 

• Senior citizens can enjoy a higher exemption limit on FD interest earnings of up to ₹50,000 annually

• If you have submitted your PAN details, the bank will deduct the standard rate of TDS at 10%

• The financial institution will deduct TDS at a higher rate of 20% if you have not furnished your PAN card

Use the facility provided above to get an estimate for your potential returns on a fixed deposit. Follow these simple steps to compute ₹12 Crore FD interest per month:

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

2. Choose the ‘Monthly’ option from the drop-down menu under the ‘Interest Payout’ category 

3. You can check the estimate of total and monthly interest payouts

Maturity Amount Calculation Example

Assume you invested ₹12 Crores in an FD with an interest rate of 8.50% p.a. for a period of 3 years (36 months).

• Monthly Interest Earned = Principal × Interest Rate / 12

• Monthly Interest Earned = ₹12,00,00,000 × 8.50% / 12

• Monthly Interest Earned = ₹12,00,00,000 × 0.085 / 12

 

• Monthly Interest Earned = ₹8,50,000

 

 

So, the monthly interest earned on ₹12 Crore fixed deposit at 8.50% p.a. would be ₹8,50,000

 

Interest Earned Upon Maturity

• Interest Earned On Maturity = Principal × Interest Rate × Time (in years) / 100

• Interest Earned on Maturity = ₹12,00,00,000 × 8.50 × 3 / 100

 

• Interest Earned on Maturity = ₹30,60,00,000

 

 

The total interest accumulated over the 3-year tenure would amount to ₹30,60,00,000

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.