Monthly Interest on a ₹60 Lakh FD

Investing in fixed deposits is a good move for those looking for a regular stream of income. While FDs offer stable and assured returns, the opting for monthly interest payout could help supplement your income. 

The monthly interest on an FD of ₹60 Lakhs when booked at an interest rate of 7.5% is approximately ₹37,000. This value has been calculated by considering a tenure of 5 years.  But, if you book an FD for the same amount and same tenure at a rate of 9%, your monthly earnings will be ₹45,000. 

Hence, compare the FD rates of various issuers before booking a deposit.

Here are the tax deduction rules on the interest on a ₹60 Lakh fixed deposit you need to know about:

• The ₹60 Lakh FD interest payout is exempt from TDS deduction if the annual amount does not exceed ₹40,000.

• Senior citizens have a higher TDS exemption limit on interest on a ₹60 Lakh FD of up to ₹50,000.

• The bank or NBFC will deduct TDS at the rate of 10% if you have furnished PAN details

• TDS is levied at 20% in case you fail to submit your PAN card details

• If your annual income is below the basic income tax limit, it is exempt from TDS deductions 

• To avoid TDS, in case your annual income is exempt from taxation, you will have to submit Form 15H/G to the bank or NBFC

With the help of an online FD interest calculator, you can compute the ₹60 Lakh fixed deposit interest per month at various tenures.

• Principal amount

• Investment tenures

• Interest rate

Using an FD calculator may be preferred by many since it is free and easy to use.

Maturity Amount Calculation Example

Here’s how to calculate the monthly interest for a fixed deposit of ₹60 Lakhs at an interest rate of 8.50% p.a. over a period of 3 years (36 months):

• Monthly Interest = Principal × Interest Rate / 12

• Monthly Interest = ₹60,00,000 × 8.50% / 12

• Monthly Interest = ₹60,00,000 × 0.085 / 12

• Monthly Interest = ₹5,10,000 / 12

• Monthly Interest = ₹42,500

Thus, the ₹60 Lakh fixed deposit interest per month earned at 8.50% p.a. would be ₹42,500.

Total Interest Earned Upon Maturity

• Total Interest = Monthly Interest × Number of Months

• Total Interest = ₹42,500 × 36

• Total Interest = ₹15,30,000

The total interest accumulated over the 3-year tenure would amount to ₹15,30,000, with a monthly payout of ₹42,500 

Note: These figures are estimates, and actual amounts may vary based on the bank or NBFC’s specific calculation methods and terms.

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.