Monthly Interest on a Fixed Deposit of ₹10,000

Investing ₹10,000 in a Fixed Deposit (FD) is a secure way of preserving your wealth while earning steady returns. You could opt to receive the interest on a monthly basis to reinvest in the amount in other investment tools to maximise your returns. Compare the different interest rates offered by banks and Non-banking Financial Companies (NBFCs) to choose the best option for yourself.  

Check the monthly interest on a fixed deposit of ₹10,000 for 5 years at various rates:

Here are the returns you can expect on an FD of ₹10,000 for 3 years offered by different bank or NBFCs:

Your monthly earnings vary based on the tenure you choose and the predetermined FD rate. Here is a tabulated overview that can help you understand the calculation of monthly interest payouts across tenures:

Interest on an FD of ₹10,000 for 1 Year

Check out the monthly interest payout you may receive when you book a fixed deposit of ₹10,000 for 1 year. 

Here’s a table outlining the maturity amounts for an investment of ₹10,000 at an interest rate of 6.50% p.a. The breakdown is provided for various tenures:

You can use an online FD interest calculator to estimate the interest per month on a fixed deposit of ₹10,000. All you have to do is enter these details:

• Principal amount

• Investment tenure

• Interest rate

Maturity Amount Calculation Example

Assume you invested ₹10,000 in an FD at an interest rate of 7% p.a. for a period of 5 years (60 months).

• Monthly Interest Earned = Principal × Interest Rate / 12

• Monthly Interest Earned = ₹10,000 × 7% / 12

• Monthly Interest Earned = ₹700 / 12

• Monthly Interest Earned = ₹58.33

 

The monthly interest earned on an FD of ₹10,000 at 7% p.a. would be ₹58.33

 

Interest Earned Upon Maturity

• Interest Earned On Maturity = Monthly Interest × Number of Months

• Interest Earned on Maturity = ₹58.33 × 60

• Interest Earned on Maturity = ₹3,499.80

 

The total interest accumulated over the 5-year tenure would amount to ₹3,499.80, with a monthly payout of ₹58.33

 

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

Based on your income tax bracket, here are some taxation rules on the interest per month on an FD of ₹10,000 based on various conditions:

• If the monthly interest payout remains below ₹40,000, you need not pay tax

• 10% TDS is applicable on interest earnings exceeding ₹40,000 in a year for regular citizens

• Senior citizens need to pay TDS if the interest earnings surpass ₹50,000

• 20% TDS is applicable if you fail to provide PAN card details

Premature withdrawal from a fixed deposit allows you to access your funds before maturity, but it often comes with penalties. Banks and NBFCs typically reduce the applicable interest rate and may also charge a small penalty fee on the withdrawn amount. These factors could significantly impact your overall returns, so it's important to review the terms before opting for early withdrawal.

FD Premature Withdrawal Example

You invest ₹10,000 in an FD with a 5-year tenure at an interest rate of 6.50% p.a. However, you choose to withdraw it prematurely after 2 years and the interest rate is reduced to 6.00% p.a. Additionally, with a 1% penalty for early withdrawal, the final interest rate drops to 5.00% p.a., leading to lower-than-expected returns.

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.