Monthly Interest on a ₹6 Lakh Fixed Deposit

While the monthly payout option in FDs offers a secure option to get regular income, it is important to ensure that you get an adequate amount. For this, you need to compare FD rates various issuers offer. Let's check an example of 6 lakh FD interest per month.

 

For example, if you invest ₹6 Lakhs in an FD at an interest rate of 8% p.a. for a tenure of 5 years, your monthly payout will be ₹4,000, with total interest earnings of approximately ₹2.7 Lakhs over the tenure. 

 

On the other hand, if you secure a higher rate of 9.50% p.a. for the same amount and tenure, you would earn a monthly payout of ₹4,750, with total interest earnings of ₹3.44 Lakhs.

 

By comparing rates, you can select the best FD plan to maximise your monthly income and overall returns.

Before investing your funds in an FD, compute your earnings using an FD calculator. Check out how much you can earn as returns every month on investing ₹6 Lakhs for a tenure of 5 years.

Refer to the following table to understand the ₹6 Lakh FD interest per month for 5 years across various institutions.

Below is a table showing the maturity amounts for a ₹6 Lakh investment in an FD at an interest rate of 7.25% p.a. The details are provided for different tenures:

When investing in this instrument, consider the following associated tax implications:

• The bank or NBFCs will deduct a Tax Deducted at Source (TDS) at 10% if your interest income exceeds ₹40,000 in a year

• The TDS exemption limit on FD interest for senior citizens is ₹50,000 in a year

• Furnish Form 15G or Form 15H to avoid a deduction if you do not fall under any income tax bracket

• The financial institution will deduct TDS at regular rate only if you have provided PAN details

• TDS will be deducted at 20% if you have not furnished your PAN card

When browsing different FD plans, compare your returns for ₹6 lakh FD interest per month using an FD calculator. To get an estimate of monthly payouts, follow these simple steps:

• Enter the investment sum, interest rate, and tenure

• Choose the ‘Monthly’ option under ‘Interest Payout’ 

• You can view your ₹6 lakh FD interest per month 

Maturity Amount Calculation Example

Assume you invested ₹6 Lakhs in an FD with an interest rate of 7.25% p.a. for a period of 4 years (60 months). Here’s how you can manually calculate the ₹6 lakh fixed deposit interest per month earned:

• Monthly Interest Earned = Principal × Interest Rate / 12

• Monthly Interest Earned = ₹6,00,000 × 7.25% / 12

• Monthly Interest Earned = ₹6,00,000 × 0.0725 / 12

• Monthly Interest Earned = ₹43,500 / 12

• Monthly Interest Earned = ₹3,625

 

The monthly interest on a ₹6 lakh fixed deposit at 7.25% p.a. would be ₹3,625

 

Total Interest Earned Upon Maturity

• Total Interest Earned = Monthly Interest × Number of Months

• Total Interest Earned = ₹3,625 × 48

• Total Interest Earned = ₹1,74,000

 

The total interest accumulated over the 4-year tenure would amount to ₹1,74,000, with a monthly interest payout of ₹3,625. 

Prematurely withdrawing a fixed deposit typically results in reduced interest rates and a penalty fee. Banks and NBFCs may offer lower returns than initially agreed upon, and a small percentage of the withdrawn amount may be charged as a penalty. Understanding these terms is crucial before breaking an FD early.

FD Premature Withdrawal Example

Let’s say you invested ₹6 Lakhs in a fixed deposit with a 5-year tenure at an interest rate of 7.25% p.a., but you decided to withdraw it after 1 year. The applicable  ₹6 lakh fixed deposit interest rate for the 1-year period would drop to 6.25% p.a. After applying a 1% penalty for premature withdrawal, the final interest rate reduces to 5.25% 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.