Monthly Interest on a Fixed Deposit of ₹80 Lakhs

Opting for competitive interest rates could amplify what you earn as the interest per month on a Fixed Deposit (FD) of ₹80 Lakhs. Comparing issuers can help you find the best FD rates and generate a stable income stream. Use an FD calculator to estimate the potential monthly payout on such investments to maximise your returns.

The monthly returns you earn on an FD depend on the applicable interest rate. See the table below to understand how your monthly payouts vary across interest rates. The tenure considered below is 5 years or 60 months.

Here is a quick overview of rates offered by various banks and NBFCs. Note that these interest rates are applicable for a tenure of 5 years.

Note: The above rates are valid as of June 2024 and subject to change at the discretion of the bank or NBFC.

Non-resident Indians (NRIs) can invest large sums like ₹80 Lakhs in fixed deposits through Non-resident External (NRE) and Non-resident Ordinary (NRO) accounts provided by certain financial institutions. Here are the interest rates for NRE and NRO FDs:

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

Here's a table outlining the maturity amounts for a ₹80 Lakhs FD at an interest rate of 7.20% p.a. for various tenures:

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

Based on the income tax bracket that you fall under, the monthly interest on an FD of ₹80 Lakhs is taxable. Here are a few crucial points that you must be aware of:

• The Tax Deducted at Source (TDS) threshold on FD interest income for regular investors is ₹40,000 in a year

• The limit for senior investors is relaxed to ₹50,000 per financial year

• The standard TDS rate applicable is 10% 

• The TDS rate is 20% if you do not furnish PAN details

 

Here is an illustration to understand the calculation better. The interest per month on an FD of ₹80 Lakhs for a tenure of 5 years at a rate of 6.5% p.a. is approximately ₹43,333.

 

Since the gains annually are sure to exceed the limit of ₹40,000 for a year, you will have to pay tax. 

The interest per month on an FD of ₹80 Lakhs can be computed instantly using an FD calculator. All you have to do is enter the following values:

• Principal amount

• FD tenure 

• Interest rate

Maturity Amount Calculation Example

Here's how you can calculate the monthly interest and total interest earned on a ₹80 Lakhs FD with an interest rate of 7.50% p.a. over 5 years (60 months):

• Monthly Interest = Principal × Interest Rate / 12

• Monthly Interest = ₹80,00,000 × 7.50% / 12

• Monthly Interest = ₹80,00,000 × 0.075 / 12

• Monthly Interest = ₹6,00,000 / 12

• Monthly Interest = ₹50,000

 

The monthly interest earned on an FD of ₹80 Lakhs at 7.50% p.a. would be ₹50,000

 

Total Interest Earned Upon Maturity

• Total Interest = Monthly Interest × Number of Months

• Total Interest = ₹50,000 × 60

• Total Interest = ₹30,00,000

 

The total interest accumulated over the 5-year tenure would amount to ₹30,00,000, and the monthly interest earned would be ₹50,000

Premature FD withdrawal lets you access funds early but usually incurs penalties. Banks and NBFCs often reduce the interest rate for that period. They may also charge a penalty on the interest earned, lowering your returns. Penalties vary across financial institutions, so reviewing the terms before investing is essential.

FD Premature Withdrawal Example

You invest ₹80 Lakhs in a fixed deposit at an interest rate of 8.50% p.a. for 4 years but decided to withdraw it prematurely after 1 year. In this case, the interest rate for that period drops to 7.50% p.a. After applying a penalty of 1%, the final interest rate reduces to 6.50% p.a., which lowers your returns.

Note: The monthly interest payouts mentioned above are indicative. Your actual returns will 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.