1 Crore FD Interest Per Month – Fixed Deposit
Fixed Deposits are a cornerstone of conservative investment strategies, providing a secure and predictable way to grow wealth. By committing a substantial sum, such as ₹1 Crore, to FDs, investors can benefit from attractive interest rates and enjoy the peace of mind that comes with a stable financial foundation.
However, not all FDs are created equal, and the interest rates offered by banks play a pivotal role in determining the success of your investment journey. A thorough comparison allows investors to identify institutions that consistently offer competitive rates and align with their financial goals. This diligence ensures that your ₹1 Crore investment not only grows but also provides a reliable and attractive monthly income.
In the subsequent sections of this blog, we will delve into the specific interest rates offered by top banks for a ₹1 Crore FD, shedding light on the potential monthly income each bank can generate. This information is invaluable for investors seeking to maximise returns and make strategic decisions based on their unique financial objectives.
Calculation of Monthly Interest Payout for Tenors of 5 and 10 Years: Non-Senior and Senior Citizens
The tenure of a Fixed Deposit (FD) is a critical factor influencing the interest rates and subsequent monthly interest payouts. In general, longer tenures tend to attract higher interest rates, offering investors the potential for greater returns on their ₹1 Crore investment.
Financial institutions often use tenure as a risk management tool, rewarding those willing to commit their funds for an extended period with more favourable interest rates, ultimately impacting the overall success of the investment strategy. Therefore, understanding the interplay between tenure and interest rates is crucial for investors seeking to optimise their returns and align their financial goals with the right FD option.
Let’s begin by examining 1 crore FD interest per month for a tenor of 5 and 10 years, differentiating between non-senior and senior citizens.
| Particulars | When Tenor is 5 Years | When Tenor is 10 Years | ||||||
| Bank/NBFC/HFC | Non-Senior Citizen (p.a.) | Monthly Interest Payout | Senior Citizen (p.a.) | Monthly Interest Payout | Non-Senior Citizen (p.a.) | Monthly Interest Payout | Senior Citizen (p.a.) | Monthly Interest Payout |
| HDFC Bank | 7.00% | 69,130 | 7.50% | 74,991 | 7.00% | 83,466 | 7.50% | 91,862 |
| Axis Bank | 7.00% | 69,130 | 7.75% | 77,974 | 7.00% | 83,466 | 7.75% | 96,214 |
| Bank of Baroda | 6.50% | 63,403 | 7.50% | 74,991 | 6.50% | 75,463 | 7.50% | 91,962 |
| Central Bank of India | 6.25% | 60,589 | 6.75% | 66,250 | 6.25% | 71,603 | 6.75% | 79,417 |
| HSBC Bank | 6.00% | 57,809 | 6.50% | 63,403 | 6.00% | 67,835 | 6.50% | 75,463 |
| Kotak Mahindra Bank | 6.20% | 60,031 | 6.70% | 65,678 | 6.20% | 70,842 | 6.70% | 78,619 |
| Punjab National Bank | 6.50% | 63,403 | 7.30% | 72,630 | 6.50% | 75,463 | 7.30% | 88,456 |
| IDBI Bank | 6.25% | 60,589 | 6.75% | 66,250 | 6.25% | 71,603 | 6.75% | 79,417 |
| State Bank of India | 6.50% | 63,403 | 7.50% | 74,991 | 6.50% | 75,463 | 7.50% | 91,862 |
| RBL Bank | 7.10% | 70,291 | 7.60% | 76,180 | 7.10% | 85,114 | 7.60% | 93,590 |
Top Bank FD Monthly Interest Payout for Deposits of Rs 1 Crore
Now, let’s shift our focus to the banks that offer the best monthly interest payouts for deposits of Rs 1 Crore.
| Bank Name | Interest Rates (%) | Monthly Interest for 1 Crore (₹) |
| Bank of Maharashtra | 7.50 | 62,500 |
| City Union Bank | 7.50 | 62,500 |
| Bank of India | 7.50 | 62,500 |
| Central Bank of India | 7.25 | 60,417 |
| HDFC | 7.75 | 64,583 |
| ICICI | 7.60 | 63,333 |
| RBL Bank | 8.30 | 69,167 |
| Axis Bank | 7.85 | 65,417 |
| Bank of Baroda | 7.75 | 64,583 |
| Indian Overseas Bank | 7.75 | 64,583 |
| Punjab National Bank | 7.75 | 64,583 |
TDS on ₹1 Crore Fixed Deposit
A 1 crore FD interest per month incurs taxation, with interest added to the investor’s total taxable income and taxed according to their applicable slab rates.
Tax Deducted at Source (TDS) is withheld from bank FD interest income exceeding ₹40,000 annually at a rate of 10%. However, this threshold limit is ₹50,000 for senior citizens.
If a PAN card is not submitted, the TDS rate on monthly interest for a ₹1 Crore FD in the bank increases to 20%.
On the other hand, Non-Banking Financial Companies (NBFCs) follow a different TDS structure. They deduct TDS at a rate of 10% for interest income exceeding ₹5,000. It’s essential for investors to be aware of these TDS provisions to effectively manage their tax liabilities on FD returns.
Penalty for Early Withdrawal of FD
If an account holder opts to prematurely close a Fixed Deposit (FD) account before its maturity, financial institutions or banks commonly impose a penalty. This penalty is usually designed to mitigate the impact of early withdrawal on the institution and may lead to a reduction in the interest payout.
The penalty amount can vary but typically ranges between 0.5% to 1% of the principal amount or the interest earned. This deduction is meant to compensate the institution for the loss of expected interest income due to the premature withdrawal of funds.
It’s important for investors to be aware of the terms and conditions related to premature withdrawal specified by the bank or financial institution at the time of opening the FD. Understanding these penalties helps account holders make informed decisions and weigh the potential financial consequences before choosing to close an FD before its maturity date.
Conclusion
Choosing the right fixed deposit for maximising returns on 1 crore FD interest per month will involve careful consideration of interest rates, monthly payouts, and tax implications. By comparing the offerings of various banks and financial institutions, investors can make informed decisions tailored to their financial goals and preferences.
It’s advisable to stay updated on the latest interest rates and regulatory changes to ensure your investments align with your long-term financial objectives. Remember, a well-informed investor is better equipped to navigate the dynamic landscape of fixed deposits and maximise returns.
Team LenDenClub
LenDenClub is India’s largest alternate investment platform which started operations in India in 2015. We have been helping investors diversify their investments beyond traditional investment instruments ever since.