Investing a substantial amount in market-linked tools can be a risky manoeuvre unless you’re ready to endure volatility. However, FDs offer a safe haven to risk-averse investors who are looking to park their savings in a stable tool that provides them with assured returns with periodic interest payouts. 

 

For instance, if you deposit a sum of ₹5 Lakhs, then you can earn interest of more than ₹2 Lakhs over 5 years at a rate of 7%. Moreover, you can reinvest the maturity amount to benefit from compounded interest. 

 

Read on to learn more about the applicable interest rates offered by various banks and NBFCs in the following sections.

Deposit Amount
Tenure
Months
Interest Rate
%
Interest Payout
Your Total Maturity Amount is
Your Total Maturity Amount is
Total Investment
Total Interest Earned

Monthly Interest on ₹5 Lakh Fixed Deposit

The table below indicates the monthly interest payout on a ₹5 Lakh FD you could earn across different banks and NBFCs for a tenor of 5 years:

Bank/NBFC/HFC

Non-Senior Citizen (p.a.)

Monthly Interest Payout

Senior Citizen (p.a.)

Monthly Interest Payout

Bajaj Finance Ltd. 

8.05%

₹ 3,354

8.30%

₹ 3,458

PNB Housing Finance Ltd. 

7.39%

₹ 3,079

7.69%

₹ 3,204

Mahindra Finance Ltd. 

8.05%

₹ 3,354

8.30%

₹ 3,458

Muthoot Finance

7.50%

₹ 3,125

8.00%

₹ 3,333

LIC Housing Finance

7.75%

₹ 3,229

8.00%

₹ 3,333

Shriram Finance

8.27%

₹ 3,446

8.77%

₹ 3,654

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 

7.00%

₹ 2,917

7.75%

₹ 3,229

IndusInd Bank 

7.25%

₹ 3,021

8.00%

₹ 3,333

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

6.25%

₹ 2,604

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

*Disclaimer: The above-mentioned rates are effective as of 20 October 2023, and are subject to change at the issuer’s discretion.

Monthly Interest for ₹5 Lakh in Fixed Deposit

Here is an estimate of the monthly interest payout you would receive on a ₹5 Lakh fixed deposit across various interest rates.

Deposit Amount

Interest Rate (p.a.)

Monthly Interest Payout

₹5 Lakh

3.00%

₹ 1,250

₹5 Lakh

3.50%

₹ 1,458

₹5 Lakh

4.00%

₹ 1,667

₹5 Lakh

4.50%

₹ 1,875

₹5 Lakh

5.00%

₹ 2,083

₹5 Lakh

5.50%

₹ 2,292

₹5 Lakh

6.00%

₹ 2,500

₹5 Lakh

6.50%

₹ 2,708

₹5 Lakh

7.00%

₹ 2,917

₹5 Lakh

7.50%

₹ 3,125

₹5 Lakh

8.00%

₹ 3,333

₹5 Lakh

8.50%

₹ 3,542

₹5 Lakh

9.00%

₹ 3,750

₹5 Lakh

9.50%

₹ 3,958

₹5 Lakh

10.00%

₹ 4,167

Now that you have a better understanding of the potential returns you could earn on a ₹5 Lakh FD, choose an issuer of your choice. On Bajaj Markets, you can select from multiple FD issuers who offer competitive interest rates. 


Moreover, you can also make use of the FD interest calculator on the platform to determine the potential returns you could earn on your fixed deposit investment.

Disclaimer

The information provided by BFDL herein above is related to the Non-Partnered Banks/ NBFCs and is just for the purpose of information and under no circumstances the information provided hereinabove is intended to be source of advice or recommending any financial investment advice or endorsement of any sort. 

The information including interest rates with regard to fixed deposit, provided on this website is gathered through publicly available sources over the internet and is considered as accurate and reliable to the best of our knowledge. BFDL disclaims any responsibility or liability regarding inaccuracies, omissions, mistakes etc. as well as offers by the Non-Partnered Banks. The use of 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. You are advised to visit/ contact the respective Banks/ NBFCs to verify the information before making any investment or opening an account. Further, BFDL does not undertake any responsibility or liability to update this information. YOU ARE SOLELY RESPONSIBLE FOR ANY LIABILITY OR DAMAGE YOU INCUR THROUGH ACCESS TO OR USE OF THE SITE OR SUCH INFORMATION OR MATERIALS EXCEPT WHERE THE LAWS AND REGULATIONS OF A PARTICULAR JURISDICTION CONCERNING WARRANTIES CANNOT BE WAIVED. Additionally, display of any trademarks, tradenames, logo and other subject matters of intellectual property owners. Display of such Intellectual Property along with the related product information does not imply BFDL’s partnership with the owner of the Intellectual Property of such products. 

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FAQs on Monthly Interest for a ₹5 Lakh Fixed Deposit

What are the documents required for a ₹5 Lakh fixed deposit?

To open a ₹5 Lakh fixed deposit, you need to submit proof of identity such as a PAN card, Aadhaar card, driving licence, voter’s ID, etc. Additionally, you will be required to provide proof of address, including documents like a passport, registered rent agreement, bank passbook with photo, electricity bill, etc. 

What are the eligibility criteria for a ₹5 Lakh fixed deposit?

To invest in a ₹5 Lakh fixed deposit, 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 FD interest on ₹5 Lakhs?

You can calculate the monthly interest on a ₹5 Lakh FD using an FD calculator available online or by performing manual calculations. An FD calculator allows you to enter the deposit amount, interest rate, and tenor to determine the interest payout and total maturity amount instantly. Alternatively, you can calculate interest manually using the formula:

M = P (1 + r/n)^(n*t)

Where:

M is the maturity amount

P is the principal amount (₹5 Lakhs in this case)

r is the interest rate

n is the compounding frequency

t is the tenor in years

 

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

Yes, the monthly interest earned on a ₹5 Lakh fixed deposit is subject to taxation as per the Income Tax Act, 1961. Suppose the annual interest income exceeds the specified threshold. In that case, TDS (Tax Deducted at Source) is applicable, and the depositor is required to declare the interest income while filing income tax returns.

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

Yes, there may be penalties for premature withdrawal of a ₹5 Lakh fixed deposit before the maturity date. The specific penalty amount and terms depend on the policies of the bank or NBFC where the FD is held. Generally, the penalty amount is deducted from the interest earned, the principal amount, or both.

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

On non-renewal of your ₹5 Lakh FD after maturity, the bank/NBFC may transfer the matured 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 ₹5 Lakh fixed deposit during the tenure?

In most cases, you cannot add more money to an existing fixed deposit during the tenure. Fixed deposits are typically opened for a specific amount for a fixed term, and additional deposits may not be allowed once the FD is initiated. However, you can open a new FD with additional funds if desired.

Is my ₹5 Lakh fixed deposit amount insured?

Deposits in banks/ NBFCs are often insured up to ₹5 Lakhs by deposit insurance schemes such as the Deposit Insurance and Credit Guarantee Corporation (DICGC) in India. 

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