Monthly Interest for an FD of ₹10 Crores

Invest ₹10 Crores in a Fixed Deposit (FD) and opt for monthly interest payout to receive a substantial amount depending on the interest rate. Utilise this amount to meet recurring expenses or invest in similar tools to maximise your returns. With this liquidity, manage unplanned expenses without dipping into your savings.  

The monthly interest on a fixed deposit of ₹10 Crores depends directly on the interest rates. Take a look at the monthly returns on an FD for a tenor of 5 years:

Compare the FD interest rates and 5-year returns on them offered by some of the leading banks and Non-banking Financial Companies (NBFCs): 

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

Here’s a table showing the maturity amounts for a ₹10 Crore investment at an interest rate of 8.25% p.a., broken down by various tenures:

Using an FD calculator, you can easily compute the monthly interest payouts for your deposit within a few seconds. Add the following details:

• Principal amount 

• Interest rate

• Investment tenure

Maturity Amount Calculation Example

Assume you invested ₹10 Crores in an FD with an interest rate of 8.50% p.a. for a period of 5 years (60 months).

• Monthly Interest Earned = Principal × Interest Rate / 12

• Monthly Interest Earned = ₹10,00,00,000 × 8.50% / 12

• Monthly Interest Earned = ₹85,00,000 / 12

• Monthly Interest Earned = ₹7,08,333.33

 

So, the monthly interest earned on an FD of ₹10 Crores at 8.50% p.a. would be ₹7,08,333.33.

 

Interest Earned Upon Maturity

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

• Interest Earned on Maturity = ₹10,00,00,000 × 8.50 × 5 / 100

• Interest Earned on Maturity = ₹4,25,00,000

 

The total interest accumulated over the 5-year tenure would amount to ₹4.25 Crores.

Premature withdrawal from a fixed deposit means taking out funds before the maturity date. This often leads to reduced interest rates and may include a penalty, typically around 0.5% to 1%. As a result, your overall returns may be lower, so it's important to review the terms before withdrawing early.

FD Premature Withdrawal Example

You invest ₹10 Crores in an FD with a 5-year tenure at an interest rate of 8.50% p.a. However, you decide to withdraw prematurely after 2 years and the interest rate for that period will be reduced to 7.50% p.a. After applying a 1% penalty for early withdrawal, the final interest rate drops to 6.50% p.a., leading to lower-than-expected returns.

Remember that the interest you earn on an FD is taxable in case it goes beyond the specific limit. Here are the current taxation rules:

• In case your income exceeds ₹40,000 in a year, banks and NBFCs deduct Tax Deducted at Source (TDS) 

• TDS is levied for senior citizens in case the payouts exceed ₹50,000 in a year

• TDS is deducted at 10% if you provide your PAN card details

• TDS is deducted at 20% If you have not submitted your PAN card details

• Forms 15H or 15G allow you to avoid TDS in case your income falls below the taxable bracket

• You can get tax deductions of up to ₹1.5 Lakhs in a year by investing in tax-saving FDs u/s 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.