Monthly Interest on a ₹18 Lakh Fixed Deposit

Investing in an ₹18 Lakh fixed deposit presents a stable and reliable opportunity for capital growth. The security and predictability offered by FDs make them an ideal choice for risk-averse investors.

 

For example, you can invest ₹18 Lakhs over a tenure of 5 years at an interest rate of 9% p.a. to earn a monthly payout of ₹13,500. Similarly, if you book an FD for the same amount and same tenure at a rate of 10%, your monthly earnings will be ₹15,000. 

Check this table to know the ₹18 Lakh FD interest per month for different rates over a tenure of 5 years: 

The ₹18 Lakh fixed deposit interest per month differs across various banks and NBFCs. Review the interest rates and monthly payouts you can receive over a 5-year period from different financial institutions.

You need to pay tax on your interest earnings if it crosses the TDS limit. Ensure you know the taxation rules to comply with them. Here is what you need to know:

• The interest is exempt from taxation if the annual amount is below ₹40,000, and extends to ₹50,000 for senior citizens

• The rate of TDS deduction is 10% if you have furnished your PAN

• The rate increases to 20% if you do not submit your PAN card details

With an online fixed deposit interest calculator, you can know the potential returns from an FD at various terms. To get accurate results instantly, enter these details into the calculator:

• Principal amount

• Investment tenure

• Interest rate

Maturity Amount Calculation Example

Let’s assume you have invested ₹18 Lakhs in an FD issued by a bank with an interest rate of 8.40% p.a. for a tenure of 3 years (36 months). Below is the step-by-step process to manually calculate the ₹18 Lakh FD interest per month:

• Monthly Interest = Principal × Interest Rate / 12

• Monthly Interest = ₹18,00,000 × 8.40% / 12

• Monthly Interest = ₹18,00,000 × 0.007

• Monthly Interest = ₹12,600

 

Therefore, the monthly interest earned on an ₹18 Lakh FD at 8.40% p.a. would be ₹12,600.

 

Total Interest Earned Upon Maturity

• Total Interest = Monthly Interest × Number of Months

• Total Interest = ₹12,600 × 36

• Total Interest = ₹4,53,600

 

Hence, over the 3-year period, the total interest earned on the FD would be ₹4,53,600, while the monthly interest earned would be ₹12,600

Most banks and NBFCs provide the option to withdraw a portion or the entire FD before its maturity; however, this convenience typically incurs penalties. These may include a premature withdrawal fee on the withdrawn amount, as well as a reduction in the originally offered ₹18 Lakh FD interest per month.

FD Premature Withdrawal Example

Assume you invested ₹18 Lakhs in an FD with a 5-year tenure at an interest rate of 8.40% p.a. but decided to withdraw it prematurely after 1 year. The applicable interest rate for the 1-year period would be 7.40% p.a. However, after applying a 1% penalty for premature withdrawal, the final interest rate will be reduced to 6.40% p.a., leading to lower returns than originally anticipated.

The information provided by BFDL is related to the rates provided by Banks and Deposit taking NBFCs and under no circumstances is intended to be source of advice or recommending 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 the 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 such 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.