Monthly Interest Payout for a ₹2.5 Crore Fixed Deposit

Investing ₹2.5 Crores in a fixed deposit can result in assured and stable earnings every month if you choose a non-cumulative FD. 

 

For example, at an interest rate of 9% p.a., the ₹2.5 Crore FD interest per month would amount to ₹1,87,500. Over a tenure of 5 years, this would result in total interest earnings of ₹1.34 Crores. 

 

Likewise, choosing a tenure of 3 years for the same FD amount at 9% p.a. will generate a monthly interest payout of ₹1,87,500. However, the interest earned per annum will come down when you choose a shorter timeline, which in this case will be ₹73 Lakhs.

 

Senior citizens may benefit even further, as some issuers offer higher interest rates to this group. Be sure to compare tenures as well as interest rates across issuers using an FD calculator to choose the best option for your needs.

The interest amount varies as the interest rate changes. The table below illustrates the ₹2.5 Crore FD interest per month booked for 5 years.

Here is an overview of FD interest rates for ₹2.5 Crores from some leading banks or NBFCs for 2024. The tenure used for calculation is 5 years.

Here's a table outlining the maturity amounts for a ₹2.5 Crore FD at an interest rate of 7.75% p.a. for various tenures:

Non-resident Indians (NRIs) can invest ₹2.5 Crores in fixed deposits using either a Non-resident External (NRE) and Non-resident Ordinary (NRO) account. Below are the interest rates for NRE and NRO FDs for an investment of ₹2.5 crores:

You can calculate your ₹2.5 Crore FD interest per month payout manually using the following formula:

 

Interest = (Principal × Rate × Time) / 100

 

Here, 

• Principal = Initial investment out of ₹2.5 Crores

• Rate = Interest rate offered by the bank or NBFC

• Time = Chosen tenure for investment 

 

Note: Check whether the bank or NBFC uses a simple or compound interest formula to get an accurate estimate. 

 

You can use an FD calculator to avoid errors and make an informed decision by comparing multiple interest options. To use the calculator, enter your investment amount, tenure, rate, and payout frequency.

Maturity Amount Calculation Example

Assume you invested ₹2.5 Crores in an FD at an interest rate of 7.75% p.a. for 3 years (36 months). Here's how to manually calculate the ₹2.5 Crore FD interest per month earned:

• Monthly Interest Earned = Principal × Interest Rate / 12

• Monthly Interest Earned = ₹2,50,00,000 × 7.75% / 12

• Monthly Interest Earned = ₹2,50,00,000 × 0.0775 / 12

• Monthly Interest Earned = ₹1,61,458.33

 

The monthly interest earned on an FD of ₹2.5 Crores at 7.75% p.a. would be ₹1,61,458.33.

 

Total Interest Earned Upon Maturity

• Total Interest Earned = Monthly Interest × Number of Months

• Total Interest Earned = ₹1,61,458.33 x 36

• Total Interest Earned = ₹58,12,500

 

The total interest accumulated over the 3-year period would amount to ₹58,12,500, with ₹2.5 Crore fixed deposit interest per month payout of ₹1,61,458.33.

Most banks and NBFCs allow you to withdraw funds from your fixed deposit investment before the tenure ends. You can choose this option if you need funds to overcome unforeseeable financial circumstances. 

 

However, the bank or NBFC may levy a penalty, which may lower your overall return. Here is how the penalty will be levied:

• A decrease in interest rate, reducing the returns for the remaining tenure

• A flat penalty on the withdrawn amount, reducing your overall returns

FD Premature Withdrawal Example

Assume you invest ₹2.5 Crores in a fixed deposit at 7.70% p.a. for 3 years. However, you decide to withdraw it after 1 year. The interest rate for the 1-year period then drops to 6.70% p.a. After applying a 1% penalty, the final interest rate is reduced to 5.70% p.a., resulting in significantly lower returns.

The ₹2.5 Crore FD interest per month is subject to Tax Deduction at Source (TDS). Here are some important points to note:

• No TDS apply for monthly interest under ₹40,000

• 10% TDS apply on a monthly payout of ₹40,000 for non-senior citizens 

• 10% TDS apply to senior citizens if the monthly payout exceeds ₹50,000

• 20% TDS apply for all age groups if you have not provided your PAN card 

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.