Monthly Interest on a ₹35 Lakh Fixed Deposit

Unlike cumulative FDs that offer earnings at maturity, non-cumulative FDs provide monthly payouts and offer a steady source of income. This can be a welcome addition to your finances when you have recurring expenses to fulfil.

 

For example, with some issuers offering interest rates of up to 9% p.a., the monthly interest on a ₹35 Lakh fixed deposit could be ₹26,250 when invested for a tenure of 5 years. Over the course of the tenure, this would result in total interest earnings of ₹18.85 Lakhs. 

 

In a similar way, if you reduce the tenure, say opt for a 2-year plan, with the same interest rate p.a., then the monthly payout will be ₹26,250, however the total interest earnings will come down to ₹6.58 Lakhs. 

 

Hence, it is necessary to compare tenures and rates before deciding upon an FD scheme.

FD rates determine how much you can earn as regular payouts. Refer to the table below to understand the ₹35 Lakh FD interest per month for 5 years at different rates.

Note: The payouts mentioned above are indicative in nature; the exact returns will depend on the issuer’s policies.

Maximise your returns by choosing the right financial institution offering higher rates. Check below the ₹35 Lakh fixed deposit interest per month across different banks and NBFCs for 5 years.

Note: The above interest rates are valid as of June 10, 2024. They may change at the issuer’s discretion.

Here’s a table outlining the maturity amounts for an investment of ₹35 lakh with FD interest rate of 8.97% p.a., for various tenures:

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

Non-resident Indians (NRIs) can invest in FD with sums like ₹35 lakh through Non-resident External (NRE) and Non-resident Ordinary (NRO) accounts provided by different financial institutions. 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.

The financial institutions will deduct TDS from your interest income if it exceeds a certain limit. TDS will be deducted at 10% if the interest earned exceeds ₹40,000 (for those below 60 years) and ₹50,000 (for senior citizens). In case, you have not furnished PAN details, TDS will be deducted at 20% instead. 

 

Here is how you could get tax deductions on the principal invested:

• Invest in tax-saving FDs that come with a lock-in period of 5 years

• Claim deductions of up to ₹1.5 Lakhs in a financial year under Section 80C of the Income Tax Act of 1961

You can utilise the facility provided above to get an estimate of how much you can earn. Follow these steps to compute ₹35 lakh FD interest per month:

1. Enter the investment amount, tenor, and interest rate

2. Opt for the ‘Monthly’ option under the ‘Interest Payout’ category

3. You can view an estimate of total interest earnings and monthly payouts

Maturity Amount Calculation Example

Let’s assume you invested ₹35 Lakhs in a fixed deposit at an interest rate of 7% p.a. for a period of 3 years (36 months). Here's how you can manually calculate the ₹35 lakh fixed deposit interest per month earned:

• Monthly Interest Earned = Principal × Interest Rate / 12

• Monthly Interest Earned = ₹35,00,000 × 7%

• Monthly Interest Earned = ₹20,416.67

 

The monthly interest earned on a ₹35 lakh FD at 7% p.a. would be ₹20,416.67

 

Interest Earned Upon Maturity

• Total Interest = Monthly Interest × Number of Months

• Total Interest = 20,416.67 x 36

• Total Interest = ₹7,35,000

 

Therefore, the total ₹35 lakh FD interest earned over the 3-year tenure would be ₹7,35,000, with a monthly payout of ₹20,416.67

 

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

A penalty for premature withdrawal from a fixed deposit is applied when the deposit is withdrawn early, usually reducing the interest rate by 0.5% to 1%. This, along with possible extra fees, may lower the overall returns on the investment.

FD Premature Withdrawal Example

Let’s assume you invest ₹35 Lakhs in a fixed deposit for a tenure of 3 years at an interest rate of 8% p.a. However, if you decide to withdraw the FD prematurely after 1 year, the interest rate will be reduced. For the 1-year period, the applicable interest rate is 7% p.a., but with a 1% premature withdrawal penalty, the final interest rate drops to 6% p.a., leading to lower returns than initially expected.

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

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.