Monthly Interest for an FD of ₹1 Crore

Invest ₹1 Crore in a Fixed Deposit (FD) to enjoy a high monthly interest payout. Compare interest rates from some of the leading banks and NBFCs. Earn up to ₹68,333 per month on an FD of ₹1 Crore for 60 months at 7.00% p.a.  

The table below shows an estimate of the ₹1 Crore FD’s interest per month in India booked for 5 years:

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

When evaluating NBFC FDs and bank FDs, interest for ₹1 Crore per month is a critical check. The table below shows the monthly interest on an FD of ₹1 Crore booked for 5 years with the below financial institutions. 

Note: The above interest rates are valid as of 5th June 2024. They may change at the bank or NBFCs’ discretion.

When evaluating NBFC FDs and bank FDs, interest for ₹1 Crore per month is a critical check. The table below shows the monthly interest on an FD of ₹1 Crore booked for 5 years with the below financial institutions. 

Note: The above interest rates are valid as of 5th June 2024. They may change at the bank or NBFCs’ discretion.

Non-resident Indians (NRIs) can invest in fixed deposits through Non-resident External (NRE) and Non-resident Ordinary (NRO) accounts offered by banks and NBFCs. 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.

Here’s a table outlining the maturity amounts for an investment of ₹1 Crore at an interest rate of 8.97% p.a. The breakdown is provided for various tenures:

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

You can use an FD calculator to determine monthly interest payouts. All you need to do is add the principal amount, interest rate, and tenure. Some calculators may require you to add details about senior citizen benefits, if any.

 

In addition, you could manually calculate a ₹1 Crore FD’s interest per month. Follow these simple steps to calculate the estimated interest:

1. Use the simple or compound interest formula based on the bank or NBFCs policy 

2. Divide the total interest payout by the number of months in your FD tenure 

Assume you invested ₹1 Crore in an FD with an interest rate of 8% p.a. for a period of 4 years (48 months). Here’s how you can manually calculate the monthly interest earned:

• Monthly Interest Earned = Principal × Interest Rate / 12

• Monthly Interest Earned = ₹1,00,00,000 × 8% / 12

• Monthly Interest Earned = ₹1,00,00,000 × 0.08 / 12

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

• Monthly Interest Earned = ₹66,666.67

 

So, the monthly interest earned on an FD of ₹1 Crore at 8% p.a. would be ₹66,666.67.

Interest Earned Upon Maturity

• Interest Earned On Maturity = (Principal x Interest Rate / Months in a year) x Months in 4 years

• Interest Earned on Maturity = ₹66,666.67 × 48

• Interest Earned on Maturity = ₹32,00,000

 

The total interest accumulated over the 4-year tenure would amount to ₹32,00,000.

 

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

Premature withdrawal allows you to access your FD before maturity. It typically incurs penalties such as reduced interest rates or a fee. The rate applied depends on the completed tenure at withdrawal, and banks or NBFCs may reduce rates or charge a penalty of 0.5% to 1% of the withdrawn amount.

FD Premature Withdrawal Example

If you invest ₹1 crore in an FD with a 4-year tenure at an interest rate of 6.50% p.a., but choose to withdraw it prematurely after 2 years, the interest rate will change. The applicable interest rate for the 2-year period would be 6.00% p.a. However, with a 1% p.a. penalty for premature withdrawal, the final interest rate drops to 5.00% p.a., leading to lower returns than originally expected.

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

Before investing in a fixed deposit, check your tax obligations and estimate your actual earnings. Here are a few things you need to know:

• Banks and NBFCs will deduct Tax Deducted at Source (TDS) if your income exceeds ₹40,000 in a year

• For senior citizens, this limit applies to payouts that cross ₹50,000 in a year

• TDS is deducted at 10% if you have furnished PAN details

• TDS is deducted at 20% if PAN details have not been submitted

• Present forms 15H or 15G if your income falls under the taxable bracket to avoid TDS  

• Claim tax deductions on investments made in tax-saving FDs provided by banks

• Tax-saving FDs are eligible for deductions up to ₹1.5 Lakhs in a financial year under Section 80C of the Income Tax Act, 1961

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.