Monthly Interest Payout on a Fixed Deposit of ₹5 Lakhs

Investing ₹5 Lakhs in a fixed deposit (FD) requires proper planning, as your earnings depend on the tenure, interest rate, and payout frequency mode. With a 7% p.a. interest rate on an FD of ₹5 Lakhs for 2 years, you could earn as much as ₹2,916 each month.

 

Likewise, if you book an FD for the same amount and same tenure at a rate of 9.50%, your monthly earnings will be ₹3,958. This is precisely why you need to compare different rates before finalising an FD scheme.

Check the monthly interest on a ₹5 lakh fixed deposit over a tenure of 5 years: 

The ₹5 lakh FD interest per month varies across banks and NBFCs. For 2024, check the rates and monthly payouts you can earn over 5 years:

Here is a table showing the maturity amounts for a ₹5 lakh FD with interest rate of 8.35% p.a. The details are provided for different tenures:

If you plan on investing in a ₹5 lakh fixed deposit with per month interest, it is essential to understand the taxation rules associated with it. 

 

Here are the rules, updated as of October 2024: 

• A TDS of 10% is applicable if the interest exceeds ₹40,000 for a regular citizen

• TDS is levied at 10% if the interest exceeds ₹50,000 for a senior citizen

• TDS is deducted at 20% if you do not submit your PAN card details

The online FD interest calculator allows you to calculate the interest earnings of your fixed deposit for various tenures. You can calculate the interest on a ₹5 lakh FD with the help of the tool. 

 

To get accurate results in an instant, enter these details into the tool:

• Principal amount

• Investment tenure

• Interest rate

Maturity Amount Calculation Example

Assume you invested ₹5 lakh in a fixed deposit with an interest  rate of 9.40% p.a. for a period of 5 years (60 months). Here’s how you can manually calculate the monthly interest earned:

• Monthly Interest Earned = Principal × Interest Rate / 12

• Monthly Interest Earned = ₹5,00,000 × 9.40% / 12

• Monthly Interest Earned = 5,00,000 × 0.094 / 12

• Monthly Interest Earned = ₹47,000 / 12

• Monthly Interest Earned = ₹3,916.67

 

So, the monthly interest earned on a ₹5 lakh FD at 9.40% p.a. would be ₹3,916.67.

 

Total Interest Earned Upon Maturity

• Total Interest Earned = Monthly Interest × Number of Months

• Total Interest Earned = ₹3,916.67 × 60

• Total Interest Earned = ₹2,35,000

 

The total interest accumulated over the 5-year tenure would amount to ₹2,35,000, and the monthly interest earned would be ₹3,916.67.

Many banks and NBFCs allow premature withdrawal of FDs, but it comes with penalties. These may include reduced interest rates or a withdrawal fee, typically ranging from 0.5% to 1% of the amount withdrawn, depending on the tenure completed.

 

For instance, if you have a ₹5 lakh fixed deposit, interest rates might drop from 7.5% to 5.5% on early withdrawal.

FD Premature Withdrawal Example

Assume you invested in a ₹5 lakh FD at an interest rate of 7.40% p.a. for a 3-year tenure, but decided to withdraw it prematurely after 1 year. The applicable interest rate for the 1-year period would be 6.00% p.a. However, after applying a 1% penalty for premature withdrawal, the final interest rate will be reduced to 5.00% 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 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.