Monthly Interest on a ₹8 Crore Fixed Deposit

Choosing the monthly payout option on a fixed deposit (FD) of ₹8 Crores is a strategic financial decision. It could give you a steady income and help you better manage your finances with effective budgeting. 

 

For example, at an ₹8 Crore FD interest rate of 9% p.a. over a tenure of 5 years, your monthly interest payout would be ₹6 Lakhs, resulting in total interest earnings of ₹4.3 Crores over the entire tenure. 

 

To maximise your returns, check the interest rates different issuers offer before investing in an FD.

Refer to the table below to check the ₹8 Crore FD interest per month for 5 years at different FD rates.

Note: The interest payouts mentioned in the table are indicative. Your actual returns may vary based on the bank or NBFCs policies.

Check out the following table to assess the  ₹8 Crore FD interest per month for 5 years across different banks and NBFCs:

Note: The above interest rates are valid as of June 13, 2024. They may change at the bank or NBFCs discretion.

As a Non-resident Indian (NRI), you can invest ₹10 Crores in fixed deposits through Non-resident External (NRE) and Non-resident Ordinary (NRO) accounts offered by banks and NBFCs. Here are the ₹8 Crore fixed deposit interest rates for NRE and NRO fixed deposits.

Note: The above-mentioned rates are subject to change at the bank’s discretion.

Here’s a table showing the maturity amounts for a ₹8 Crore investment at an interest rate of 9.40% p.a., broken down by various tenures:

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

To get an estimate of potential returns, you can use an FD calculator. Follow these simple steps to compute the ₹8 Crore FD interest per month

1. Input the investment amount, tenure, and interest rate

2. Choose the ‘Monthly’ option under the ‘Interest Payout’ category 

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

Maturity Amount Calculation Example

Let's say you invested ₹8 Crores in a fixed deposit at an interest rate of 9.40% p.a. for a period of 5 years (60 months). Here’s how to calculate both the monthly interest and the total interest earned upon maturity.

• Monthly Interest Earned = Principal × Interest Rate / 12

• Monthly Interest Earned = ₹8,00,00,000 × 9.40% / 12

• Monthly Interest Earned = ₹8,00,00,000 x 0.094

• Monthly Interest Earned = ₹6,26,666.67

 

So, the monthly interest earned on an FD of ₹8 Crores at 9.40% p.a. would be ₹6,26,666.67

 

Interest Earned Upon Maturity

• Interest Earned On Maturity = Principal × Interest Rate × Time (in years) / 100

• Interest Earned on Maturity = ₹8,00,00,000 × 9.40 × 5 / 100

• Interest Earned on Maturity = ₹3,76,00,000

 

The total interest accumulated over the 5-year period would amount to ₹3.76 crores, with the ₹8 Crore FD interest per month of ₹6,26,666.67.

Withdrawing a fixed deposit before maturity can result in reduced earnings. Banks and NBFCs often lower the interest rate from the original offer and may also impose a penalty fee on the withdrawn amount. These penalties can significantly impact your overall returns.

FD Premature Withdrawal Example

You invest ₹8 Crores in an FD with a 3-year tenure at an interest rate of 9.40% p.a. However, you decide to withdraw prematurely after 1 year and the interest rate for that period will be reduced to 8.40% p.a. After applying a 1% penalty for early withdrawal, the final interest rate drops to 7.40% p.a., leading to lower-than-expected returns.

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

Evaluate tax liabilities on your investment to calculate the net returns you may receive. The following are a few tax regulations to consider:

• The bank or NBFC will impose Tax Deducted at Source (TDS) if your annual interest income exceeds ₹40,000 or ₹50,000 for senior citizen investors

• If you have submitted your PAN details, the bank or NBFC will deduct TDS at the standard rate of 10% or 20%, if not

• In addition to TDS, the FD interest will be added to your taxable income and taxed as per the slab you fall under

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.