Earn interest up to 8.10% p.a. by investing in a Bajaj Finance Fixed Deposit | Rated CRISIL AAA/ STABLE and [ICRA]AAA(stable)

A fixed deposit is an ideal investment option if you are looking for a reliable source of extra income each month. By opting for a non-cumulative deposit, you can enjoy the benefit of steady interest payouts on a monthly basis. If you have a lump sum amount lying around, say around ₹10 Lakh, you can invest it in an FD with a bank or an NBFC. 

 

The ₹10 Lakh FD interest per month depends on the rate of interest offered by the bank or NBFC you choose to invest with. These rates vary from one entity to another, and they are revised on a periodic basis as the economy changes. If you open an FD, monthly interest for ₹10 Lakh in bank can help you meet any additional expenses you may have. To make it easier, you can also use the FD compound interest calculator to better understand the return on your investment.

List of NBFC Fixed Deposit Interest Rates for ₹10 Lakh 

The interest rates offered to you determine the fixed deposit monthly interest for ₹10 lakh in bank. If you are planning to invest this sum of money in an NBFC fixed deposit, the table below shows you the interest rates, interest amount and the maturity amount for FDs offered by the top NBFCs. 

 

The interest rates shown below are for NBFC FDs with an investment tenor of 5 years. 

NBFC 

Interest Rate for Monthly Payout Option

₹10 Lakh Fixed Deposit Interest Per Month

Maturity Amount

Bajaj Finance FD

7.58%

₹6,317

₹14,59,153

PNB Housing Finance FD

7.65%

₹6,175

₹14,45,673

Mahindra Finance FD

7.75%

₹6,042

₹14,52,401

Disclaimer: These are the fixed deposit rates as of 20th January 2023 and they may be subject to change at the company’s discretion. 

List of Fixed Deposit Monthly Interest for ₹10 Lakh in Bank

You can also opt for bank fixed deposits if you want a higher degree of safety. The monthly interest for ₹10 lakh in bank, saved through a fixed deposit, depends on the interest rate offered by the bank. Check out the interest rates, interest amount and the maturity amount for the top bank FDs available today. 

 

The interest rates shown below are for bank FDs with an investment tenor of 5 years. 

Bank

Interest Rates

₹10 Lakh Fixed Deposit Interest Per Month

Maturity Amount

State Bank of India

6.75%

₹6,668

₹14,00,114

Punjab National Bank

6.90%

₹6,843

₹14,10,595

Axis Bank

7.75%

₹7,857

₹14,71,459

Disclaimer: These are the fixed deposit rates as of 22 December, 2022 and they may be subject to change at the bank’s discretion. 

Why you should choose monthly interest for a ₹10 Lakh FD 

Investing a lump sum amount like ₹10 Lakh in a fixed deposit has many advantages. The interest per month on your ₹10 Lakh FD can be beneficial to you financially. Here are various other reasons to choose the option of fixed deposit monthly interest for ₹10 Lakh in banks or NBFCs. 

1. High Returns 

Since ₹10 Lakh is a sizable sum, you get the benefit of high returns on your investment. This can help you meet any regular financial requirements you may have each month. 

2. Flexible Tenor

Fixed deposits offer flexible tenor options ranging from 7 days to 10 years or so. You can choose a tenor that is suitable for you and enjoy regular FD interest per month on your ₹10 Lakh deposit. 

3. Preferential Rates

If you are a senior citizen or a retired individual, you get the advantage of additional preferential rates on your ₹10 Lakh FD. The rates may be 0.25% or 0.50% higher. 

4. Guaranteed Returns 

Fixed deposits also give you guaranteed and assured returns. You can rely on this regular source of income irrespective of market movements. 

TDS on ₹10 Lakh FD Interest Per Month 

Earning an alternate income through ₹10 lakh FD interest per month will be subject to TDS. Here are some key things you should know about tax deductions on the FD interest.

 

  • TDS will be deducted on your FD interest if the total returns exceed ₹40,000 per year (or ₹50,000 if you are a senior citizen).

  • Tax will be deducted at the rate of 10% from your interest (or 20% if you have not provided your PAN).

  • If you are an NRI, the rate of TDS is 30%.

Cumulative and Non-cumulative FD for ₹10 Lakh 

When you opt to invest ₹10 Lakh in a fixed deposit, you can choose from two types of FDs, namely cumulative and non-cumulative deposits. One of these gives you capital appreciation, while the other gives you regular fixed deposit monthly interest for ₹10 Lakh in bank. Here is a quick look at which kind to choose when. 

  • Cumulative Fixed Deposit 

A cumulative deposit is one where the interest earned is reinvested in the FD and paid out at maturity. This kind of deposit is ideal if you are not looking for any regular income, and instead want to grow your capital. 

  • Non-Cumulative Fixed Deposit 

If you are looking for regular ₹10 Lakh FD interest per month, a non-cumulative FD is suitable for you. Here, you can opt for regular payouts on a monthly (or quarterly, half-yearly or annual) basis.

Check Monthly Interest Rate on your Fixed Deposits 

Conclusion

This should give you a better idea of the fixed deposit monthly interest for ₹10 lakh in bank. If you are looking for a safe way to earn regular income on your investments, this is an option worth considering. Just remember to check the latest rates of interest before making your deposit.

FAQs

  • ✔️Can NRIs open a ₹10 Lakh FD?

    Yes, NRIs can opt for fixed deposit monthly interest for ₹10 lakh in banks and NBFCs that offer this facility for non-resident Indians.

  • ✔️Are ₹10 Lakh FDs taxable?

    Yes, the returns or interest per month on ₹10 Lakh FDs is taxable as per the income tax slab rate applicable to you. 

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

    No, there is no official cap on the ₹10 Lakhs fixed deposit interest per month. The rates vary from one bank or NBFC to another, and are subject to change from time to time. 

  • ✔️What are the documents required for a ₹10 Lakh fixed deposit in a bank?

    To open a fixed deposit for ₹10 Lakh, you need to provide the following documents.

    • A proof of identity like your PAN, Aadhaar card, passport etc.

    • A proof of address like your Aadhaar card, passport, voter’s ID etc.

    • Passport size photographs

    • Any other KYC documents as may be required by the bank or NBFC

    A culmination of these documents should aid you through the process of booking an FD which can help you build your wealth with fixed deposit monthly interest for ₹10 lakh in bank. 

  • ✔️What are the eligibility criteria for a ₹10 Lakh fixed deposit?

    Resident individuals, non-resident Indians, HUFs and sole proprietorships are all eligible to open fixed deposits.

  • ✔️How to calculate FD interest on ₹10 Lakh?

    If you want to earn regular ₹10 lakh fixed deposit interest per month, you may first want to check how much your returns will be. It helps to know how FD interest is calculated. In the case of cumulative fixed deposits, a ₹10 Lakh FD interest per month is compounded and calculated using the formula shown below:

     

    Compound interest = P (1 + r/n)nt - P

     

    Here, P is the principal invested, r is the interest rate, n is the number of times the interest is compounded during the year and t is the investment tenor in years.

     

    On the other hand, if you opt for a non-cumulative fixed deposit, you earn simple interest on your investments, which is calculated using the formula given below.

     

    Simple interest = (P x R x T) ÷ 100

     

    Here, P is the deposited amount, R is the rate of interest and T is the tenor in years.