Monthly Interest on a ₹50 Lakh FD

Upon choosing the monthly interest on a ₹50 Lakh fixed deposit payout option for 5 years, you can earn up to ₹40,000 with an interest rate of 9%, along with a total interest earned coming to ₹27 Lakhs. 

 

Similarly, opting for a shorter tenure, say 2 years on the same FD amount at 9% interest rate p.a. will generate monthly interest up to ₹40,000, but here the interest earned per annum will go down to ₹9.40 Lakhs. Hence, compare your tenures before you invest. This is crucial because several factors affect the rate and the annual interest on a ₹50 Lakh FD you will receive.

The ₹50 Lakh fixed deposit interest per month depends on the rate that the bank or NBFC offers. Here is an overview of the monthly payout for different rates for a tenure of 5 years:

Here is an overview of the ₹50 Lakh FD interest offered by different banks and NBFCs in 2024, for a tenure of 5 years:

Here's a table outlining the maturity amounts for a fixed deposit of ₹50 Lakhs at an interest rate of 8.00% p.a. for various tenures:

Non-resident Indians (NRIs) can invest in fixed deposits through Non-resident External (NRE) and Non-resident Ordinary (NRO) accounts offered by banks and NBFCs. Below are the interest rates for NRO and NRE FDs:

The financial institution will deduct TDS from your interest if the annual amount crosses the threshold. Here is an overview of the conditions for the deduction:

• TDS will be applicable if annual interest on a ₹50 Lakh fixed deposit exceeds ₹40,000 for regular investors.

• The limit of TDS deduction is extended to ₹50,000 for senior citizen investors

• TDS is deducted at 10% if PAN details have been furnished 

• TDS will be deducted a 20% if PAN details have not been provided  

The earning from an FD depends on the interest rate offered by the financial institution. The interest on a ₹50 Lakh FD depends on several factors, including:

• Investment tenure

• Repo rate

• Bank or NBFC's policies

 

Generally, you get higher rates with a longer tenure, resulting in better returns. So, consider this and invest accordingly to get ₹50 Lakhs FD interest per month.

Calculate the potential interest you could earn from an FD of ₹50 Lakhs to ensure it yields the desired results. You can easily get an estimate of your returns using an FD calculator. Here is the information you will need to enter into the tool:

• Investor type (senior or non-senior)

• Investment amount

• Tenure

• Interest rate

• Payout option

Maturity Amount Calculation Example

Assume you invested ₹50 Lakhs in an FD with an interest rate of 9.40% p.a. for a period of 5 years (60 months). Here’s how you can manually calculate the monthly interest earned:

• Monthly Interest Earned = ₹50,00,000 × 9.40% / 12

• Monthly Interest Earned = ₹50,00,000 × 0.094 / 12

• Monthly Interest Earned = ₹4,70,000 / 12

• Monthly Interest Earned = ₹39,166.67

 

So, the monthly interest earned on an FD of ₹50 Lakhs at 9.40% p.a. would be ₹39,166.67

 

Total Interest Earned Upon Maturity

• Total Interest Earned = Monthly Interest × Number of Months

• Total Interest Earned = ₹39,166.67 × 60

• Total Interest Earned = ₹23,50,000

 

The total interest accumulated over the 5-year tenure would amount to ₹23,50,000, and the monthly interest on a ₹50 Lakh FD would be ₹39,166.67.

Financial institutions allow premature withdrawals but impose penalties, such as reduced interest rates and fees, which lower your returns. These penalties vary by bank and NBFC, so it’s important to review the terms before investing.

FD Premature Withdrawal Example

You invest ₹50 Lakhs in a fixed deposit at an interest rate of 8.20% p.a. for a 4-year tenure. However, you decide to withdraw prematurely after 1 year the applicable interest rate is then reduced to 6.00% p.a. for that period. With a 1% penalty for early withdrawal, the final interest rate is further lowered to 5.00% p.a., leading to lower returns than initially expected.

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.