Investing ₹5 Lakhs in a fixed deposit (FD) requires proper planning, as your earnings depend on the tenor, interest rate, and payout frequency mode. With a 7% p.a. interest rate on an FD of ₹5 Lakhs for 2 years, you could earn as much as ₹2,917 each month.

 

Likewise, if you book an FD for the same amount and same tenor at a rate of 9.50%, your monthly earnings will be ₹3,958. This is precisely why you need to compare different rates before finalising an FD scheme.

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)

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Monthly Interest for a Fixed Deposit of ₹5 Lakhs

Here is a breakdown of the amount you could earn as the monthly interest on an FD of ₹5 Lakhs for 5 years:

Deposit Amount

Interest Rate (p.a.)

Monthly Interest Payout

₹5 Lakhs

6.00%

₹2,500

₹5 Lakhs

6.50%

₹2,708

₹5 Lakhs

7.00%

₹2,917

₹5 Lakhs

7.50%

₹3,125

₹5 Lakhs

8.00%

₹3,333

₹5 Lakhs

8.50%

₹3,542

₹5 Lakhs

9.00%

₹3,750

₹5 Lakhs

9.50%

₹3,958

₹5 Lakhs

10.00%

₹4,167

Note: The monthly interest payouts mentioned above are indicative, and your actual returns will vary depending on the issuer’s policies.

Monthly Interest Payout for an FD of ₹5 Lakhs from Banks and NBFCs

The following table provides the amount you can earn as interest on a fixed deposit of ₹5 Lakhs for 5 years with different issuers:

 

Bank/NBFC/HFC

Non-senior Citizen (p.a.)

Monthly Interest Payout

Senior Citizen (p.a.)

Monthly Interest Payout

Bajaj Finance Ltd.

8.10%

₹3,375

8.35%

₹3,479

PNB Housing Finance Ltd.

7.65%

₹3,188

7.85%

₹3,271

Mahindra Finance Ltd.

8.10%

₹3,375

8.35%

₹3,479

LIC Housing Finance Ltd

7.75%

₹3,229

8.00%

₹3,333

Shriram Finance

8.47%

₹3,529

8.97%

₹3,738

ICICI Bank 

7.00%

₹2,917

7.50%

₹3,125

HDFC Bank 

7.00%

₹2,917

7.50%

₹3,125

IDFC First Bank 

7.00%

₹2,917

7.50%

₹3,125

Axis Bank 

7.10%

₹2,958

7.60%

₹3,167

IndusInd Bank 

7.25%

₹3,021

7.75%

₹3,229

YES Bank 

7.25%

₹3,021

8.00%

₹3,333

Jana Small Finance Bank 

7.25%

₹3,021

7.75%

₹3,229

Kotak Mahindra Bank

6.20%

₹2,583

6.70%

₹2,792

SBI

6.50%

₹2,708

7.50%

₹3,125

AU Small Finance Bank

7.25%

₹3,021

7.75%

₹3,229

Ujjivan Small Finance Bank

7.20%

₹3,000

7.70%

₹3,208

Note: The above-mentioned interest rates are subject to change at the issuer’s discretion.

 

Now that you understand the monthly returns you could get on an FD of ₹5 Lakhs for a tenor of 5 years, choose an offer that provides higher interest rates. On Bajaj Markets, you can select from multiple FD issuers who provide competitive interest rates. 


You can also calculate FD interest earnings using the FD interest calculator to determine the potential returns you could earn.

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.

Frequently Asked Questions

What are the documents required to book a fixed deposit of ₹5 Lakhs?

To open a fixed deposit of ₹5 Lakhs, you may need to submit proof of identity, like PAN card. You may also have to submit proof of address such as your Aadhaar card, and other KYC documents. However, these requirements differ among issuers.

What are the eligibility criteria to meet when investing in a fixed deposit of ₹5 Lakhs?

To invest in an FD of ₹5 Lakhs, you must be at least 18 years old and an Indian resident. The eligibility criteria may vary slightly depending on the policies of the bank or NBFCs where you plan to open the FD.

How to calculate the FD interest on ₹5 Lakhs?

You can calculate the total interest you stand to earn using an FD calculator. To get an estimate, enter the loan amount, tenor, and yearly or monthly FD interest rates. You will get the result within seconds.

Is the monthly interest earned on a fixed deposit of ₹5 Lakhs taxable?

Yes, the monthly interest earned on a fixed deposit of ₹5 Lakhs is subject to taxation as per the Income Tax Act, 1961. A TDS rate of 10% will apply if the yearly interest on an FD of ₹5 Lakhs exceeds ₹40,000 (₹50,000 for senior citizens).

Is there a penalty for withdrawing the fixed deposit of ₹5 Lakhs before maturity?

Yes, there may be penalties for premature withdrawal of a fixed deposit of ₹5 Lakhs. The specific penalty amount and terms depend on the policies of the bank or NBFC where you hold the FD.

What happens if I do not renew my FD of ₹5 Lakhs after maturity?

On non-renewal of your FD of ₹5 Lakhs, the issuer may transfer the principal amount along with the interest earned to your linked savings account. Alternatively, they may provide options for renewing the FD for another term or withdrawing the funds entirely.

Can I add more money to my fixed deposit of ₹5 Lakhs during the tenor?

You cannot add more money to an existing fixed deposit during the tenor. However, you can open a new FD with additional funds if required.

Is my fixed deposit amount of ₹5 Lakhs insured?

Deposits in banks are often insured up to ₹5 Lakhs per depositor by the Deposit Insurance and Credit Guarantee Corporation (DICGC) in India.

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