Monthly Interest on a Fixed Deposit of ₹10 Lakhs

Deposit Amount

Interest Rate

Tenure

Months

Interest Payout

At Maturity
At Maturity
Monthly
Quaterly
Half Yearly
Yearly

Investment Amount

Interest Rate

Total Interest Amount

Total Payout (Principal + Interest)

Get Returns up to 9.40%* p.a.

If you are opting for a Fixed Deposit (FD) of ₹10 Lakhs with a monthly payout option, it's crucial to understand the potential earnings at different interest rates. Compare the rates offered by banks and Non-banking Financial Companies (NBFCs) to secure the best possible FD rates. Choose a plan that aligns with your financial goals and needs.

Monthly Interest Payout on a Fixed Deposit of ₹10 Lakhs

Refer to this table to know the monthly returns on a deposit of ₹10 Lakhs for a tenure of 5 years.

Deposit Amount

Interest Rate (p.a.)

Monthly Interest Payout

₹10 Lakhs

6.00%

₹5,000

₹10 Lakhs

6.50%

₹5,417

₹10 Lakhs

7.00%

₹5,833

₹10 Lakhs

7.50%

₹6,250

₹10 Lakhs

8.00%

₹6,666

₹10 Lakhs

8.50%

₹7,083

₹10 Lakhs

9.00%

₹7,500

₹10 Lakhs

9.50%

₹7,916

₹10 Lakhs

10.00%

₹8,333

Note: The monthly interest payouts mentioned above are indicative. Your actual returns may vary based on the bank or NBFC's policies.

Interest on an FD of ₹10 Lakhs Offered by Banks and NBFCs

The monthly interest on ₹10 Lakhs invested in an FD with a bank or NBFC varies depending on their policies. Review the rates and potential monthly payouts over a 5-year period.

Bank/NBFC/HFC

Non-senior Citizens (p.a.)

Monthly Interest Payout

Senior Citizens (p.a.)

Monthly Interest Payout

Bajaj Finance Ltd.

7.81%

₹6,508

8.05%

₹6,708

PNB Housing Finance Ltd.

7.35%

₹6,125

7.55%

₹6,291

Mahindra Finance Ltd. 

7.55%

₹6,291

7.80%

₹6,500

LIC Housing Finance

7.50%

₹6,250

7.75%

₹6,458

Shriram Finance

8.47%

₹7,058

8.97%

₹7,475

ICICI Bank 

7.00%

₹5,833

7.60%

₹6,333

HDFC Bank 

7.00%

₹5,833

7.50%

₹6,250

IDFC First Bank 

7.00%

₹5,833

7.50%

₹6,250

Axis Bank 

7.00%

₹5,833

7.75%

₹6,458

IndusInd Bank 

7.25%

₹6,041

7.75%

₹6,458

YES Bank

7.25%

₹6,041

8.00%

₹6,666

Jana Small Finance Bank 

7.25%

₹6,041

7.75%

₹6,458

Kotak Mahindra Bank

6.20%

₹5,166

6.70%

₹5,583

SBI

6.50%

₹5,416

7.50%

₹6,250

AU Small Finance Bank

7.21%

₹6,008

7.70%

₹6,416

Ujjivan Small Finance Bank 

7.20%

₹6,000

7.70%

₹6,416

Note: The above rates are valid as of 18th June 2024 and subject to change at the discretion of the bank or NBFC.

Interest Payout on ₹10 Lakhs FD Based on Tenure

Here’s a table outlining the maturity amounts for an investment of ₹10 Lakhs at an interest rate of 8.05% p.a. The breakdown is provided for various tenures:

Tenure

Yearly Payout

1 Year (12 Months)

₹10,80,500

2 Years (24 Months)

₹11,67,480

3 Years (36 Months)

₹12,61,462

4 Years (48 Months)

₹13,63,010

5 Years (60 Months)

₹14,72,732

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

TDS on a Fixed Deposit of ₹10 Lakhs

As mentioned, you need to pay tax on your interest earnings in case it crosses a certain threshold. Therefore, if you plan on investing in a fixed deposit, ensure you are aware of taxation rules. Here is what you need to know: 

  • The interest amount is exempt from taxation if the annual earnings does not exceed ₹40,000

  • For senior citizens, this limit extends to ₹50,000 

  • A TDS of 10% is levied if the interest amount goes beyond the prescribed threshold

  • A TDS of 20% is levied if you do not submit your PAN card details

How to Calculate Interest on an FD of ₹10 Lakhs

The online fixed deposit interest calculator can help you calculate the interest from an FD for various tenures. To get accurate results within a few seconds, enter these details into the digital tool:

  • Principal amount

  • Investment tenure

  • Interest rate

Maturity Amount Calculation Example

If you invested ₹10 lakhs in an FD at an interest rate of 8.40% p.a. for a period of 3 years, here's how you can manually calculate the monthly interest earned:

  • Monthly Interest Earned = Principal × Interest Rate / 12

  • Monthly Interest Earned = ₹10,00,000 × 8.40% / 12

  • Monthly Interest Earned = ₹10,00,000 × 0.084 / 12

  • Monthly Interest Earned = ₹84,000 / 12

  • Monthly Interest Earned = ₹7,000

 

So, the monthly interest earned on an FD of ₹10 lakhs at 8.40% p.a. would be ₹7,000.

Interest Earned Upon Maturity

  • Interest Earned on Maturity = ₹7,000 × 36

  • Interest Earned on Maturity = ₹2,52,000

 

The total interest accumulated over the 3-year tenure would amount to ₹2,52,000.

 

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

Penalty for Withdrawing a Fixed Deposit of ₹10 Lakhs Before Maturity

While most banks and NBFCs permit premature FD withdrawals, it may be subject to a penalty. This may include reduced interest rates and premature withdrawal fees, typically ranging from 0.5% to 1% of the amount withdrawn. The interest rate applied will depend on the completed tenure at the time of withdrawal.

FD Premature Withdrawal Example

If you invest ₹10 lakhs in an FD with a 3-year tenure at an interest rate of 8% p.a., but decide to withdraw prematurely after 1 year, the interest rate will change. The applicable rate for the 1-year period would be 7.00% p.a. After applying a 1% penalty for premature withdrawal, the final interest rate reduces to 5.00% p.a., leading to lower returns.

Parameter

Details

Principal Amount Invested 

₹10,00,000

Maturity After 3 Year

₹12,59,712

Interest Rate at the Time of Booking

8.00% p.a.

Effective Interest Rate for 1 Year Tenure

7.00% p.a.

Premature Withdrawal Penalty Rate

1% p.a.

Final Interest Rate 

5.00% p.a.

Final Amount Payable

₹10,50,000

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

Disclaimer

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.

FAQs on the Monthly Interest for an FD of ₹10 Lakhs

Can NRIs open an FD of ₹10 Lakhs?

Yes, NRIs can open an FD of ₹10 Lakhs either in a bank or an NBFC that offers this facility and earn attractive interest on fixed deposits in India.

Are FDs of ₹10 Lakhs taxable?

Yes, the returns earned annually on an FD of ₹10 Lakhs are taxable as per the applicable income tax slab rate.

Is there a minimum and maximum cap on the interest rate for a fixed deposit of ₹10 Lakhs?

No, there is no official cap on the FD interest rates for ₹10 Lakhs. The rates vary between banks and NBFCs and are subject to change.

What are the documents required for a fixed deposit of ₹10 Lakhs in a bank?

The documents required for an FD of ₹10 Lakhs include your identity proof, signature proof, and address proof. These include passport, voter ID card, Aadhaar card, ration card, driving licence, etc. Senior citizens may need to submit age proof along with Form 15H.

What are the eligibility criteria required to book a fixed deposit of ₹10 Lakhs?

To invest in a fixed deposit of ₹10 Lakhs, you must be at least 18 years old and hold a PAN card. Members of Hindu Undivided Families (HUFs) must have a separate PAN card in their name. Minors can open an FD along with an adult guardian.

How to calculate the FD interest on ₹10 Lakhs?

You can calculate monthly interest on an FD of ₹10 Lakhs using an FD calculator online. Simply enter the amount, maturity period, and the fixed deposit interest rate to get the results within seconds.

How much interest can I earn monthly on a fixed deposit of ₹10 Lakhs?

The monthly interest you can earn on a fixed deposit of ₹10 Lakhs depends on the interest rate offered by the bank or NBFC. For instance, with an interest rate of 6% and a tenor of 5 years, the monthly interest payout will be ₹5,000.

Is there a penalty for withdrawing a fixed deposit of ₹10 Lakhs before maturity?

Yes, there may be penalties for premature withdrawal of an FD of ₹10 Lakhs before its maturity date. These penalties vary among banks and financial institutions and are usually a percentage of the interest earned or a fixed amount.

Can I take a loan against my fixed deposit of ₹10 Lakhs?

Yes, many banks offer loans against fixed deposits as collateral. The loan amount you can borrow typically ranges from 70% to 90% of the fixed deposit's principal amount. Interest rates on such loans are generally lower than other types of loans.

What happens if I do not renew my FD of ₹10 Lakhs after maturity?

If you do not renew your fixed deposit of ₹10 Lakhs after maturity, the funds, including the interest earned, will be transferred to your linked savings account. Some banks may automatically renew the FD for the same tenor unless you instruct them otherwise.

Is my fixed deposit of ₹10 Lakhs insured?

Deposits up to ₹5 Lakhs in a bank, including fixed deposits, are insured under the Deposit Insurance and Credit Guarantee Corporation (DICGC) scheme. Therefore, your fixed deposit of ₹10 Lakhs is insured up to ₹5 Lakhs, and any amount above that is not covered by insurance.

Can I take FD interest monthly?

Yes, you can choose monthly interest payouts on your fixed deposit.

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