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.

If you plan to use the monthly payouts of the FD as an income, knowing the payouts at various rates becomes essential. Check the ₹60 Lakh FD interest per month at different rates over a tenure of 5 years: 

Here are the interest rates that some of the leading banks and NBFCs offer on a deposit of ₹60 Lakhs and the monthly interest on a ₹60 Lakh FD you could earn over 5 years:

Here’s a table detailing the maturity amounts for a ₹60 Lakh FD at an interest rate of 7.00% p.a., with a breakdown across different tenures:

Non-resident Indians (NRIs) can invest large amounts like ₹60 Lakhs FDs through Non-resident External (NRE) and Non-resident Ordinary (NRO) accounts. The table below outlines the interest rates available for NRO and NRE fixed deposits:

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.

Many banks and NBFCs allow premature withdrawal of fixed deposits, but it often comes with certain conditions. The interest rate originally offered on the deposit may be reduced if you withdraw before maturity. Additionally, a premature withdrawal fee is usually charged, which can impact the overall returns on your investment.

FD Premature Withdrawal Example

You invest ₹60 Lakhs in an FD at 7.20% p.a. for 3 years but decided to withdraw after 1 year. The interest rate drops to 6.20% p.a. for the 1-year period. After a 1% penalty, the final rate reduces to 5.20% p.a., resulting in lower returns than 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.