Fixed deposits are popular investment tools that help investors earn safe and guaranteed returns across a specific timeline. However, FD earnings depend on the amount invested, the applicable FD interest rate, and the tenor chosen.
Say an individual books a ₹1 Crore FD; the interest per month they generate will be a sizeable sum. Again, this depends on the type of FD they choose. If they opt for a payout at maturity or a cumulative FD, then their interest earnings will be accrued over the specific tenor.
Alternatively, if investors choose a non-cumulative FD, they can opt for regular interest payouts across monthly, quarterly, half-yearly, or yearly frequencies.
Monthly Interest for a ₹1 Crore FD
See the table to understand the monthly interest payouts across various banks and NBFCs when investors book a ₹1 Crore FD.
| Name of the Financial Institution | Tenor | Regular FD Interest Rates (p.a.) | Monthly Interest Payout | Senior Citizen FD Rates (p.a.) | Monthly Interest Payout |
| Bajaj Finance Limited | 42 months | 8.28% | ₹69,000 | 8.51% | ₹70,917 |
| PNB Housing Finance | 45 months | 7.58% | ₹63,167 | 7.88% | ₹65,667 |
| Mahindra Finance | 42 months | 7.50% | ₹62,500 | 7.75% | ₹64,583 |
| ICICI Bank | 24 months | 7.20% | ₹60,000 | 7.75% | ₹64,583 |
| HDFC Bank | 24 months | 7.00% | ₹58,333 | 7.50% | ₹62,500 |
Disclaimer: The aforementioned interest rates are subject to change at the discretion of the financial institution. Kindly check the latest FD rates on the FD issuer’s website before booking an FD.
An Example Showing the Calculation of Monthly Interest Payouts for a ₹1 Crore FD
When booking a ₹1 Crore FD, the interest per month varies based on the issuer’s interest rate. To understand this better, consider a hypothetical example by comparing monthly interest payouts for a ₹1 Crore FD at various interest rates.
| Interest Rate (p.a.) | Monthly Interest Payout |
| 6.00% | ₹50,000 |
| 6.50% | ₹54,167 |
| 7.00% | ₹58,333 |
| 7.50% | ₹62,500 |
| 8.00% | ₹66,667 |
| 8.50% | ₹70,833 |
| 9.00% | ₹75,000 |
| 9.50% | ₹79,167 |
| 10.00% | ₹83,333 |
Disclaimer: These values have been calculated for illustration purposes.
Key Factors to Consider When Booking an FD
Be it fixed deposits or any other investment avenues, it is crucial that investors factor in their goals and finances before making a decision.
Here are some key pointers that one needs to be aware of:
- Financial Goals
Remember, this is a unique factor that investors need to assess before investing in a fixed deposit. Say an individual has a sizeable sum of ₹1 Crore idle in their savings account. While investing in an FD can generate guaranteed returns, they can also consider other investment options. However, keep one’s risk factor in mind before zeroing in on a suitable investment vehicle.
- Duration of the Investment
The FD tenor is directly linked to one’s interest earnings. Simply put, the longer an individual stays invested, the higher their return on investment. Also, FD issuers offer higher rates if they choose a longer tenor.
They must make sure to opt for a convenient timeline that helps them generate sufficient returns across the tenor.
- FD Interest Rate
While an FD offers assured returns, investors can maximise their earnings by opting for an FD with high interest rates. One must research and compare various issuers and opt for a suitable one providing excellent rates to accumulate a sizeable income.
Investors could also leverage the benefits of senior citizen FD rates by booking an FD in the name of an elderly family member. Most issuers offer an additional 0.30% - 0.65% p.a. on their existing FD rates for senior citizens.
How to Book a ₹1 Crore FD
Whether one needs to invest a huge amount of ₹1 Crore or a small sum of ₹50,000, booking an FD requires some forethought. Here is a list of steps that investors could follow to choose a suitable FD.
Check the Existing FD Rates
Investors must compare the FD rates offered by various banks and NBFCs to choose the right plan that maximises their returns. As the amount involved is quite large, individuals must contact the respective issuer and confirm the process.
Opt for a Convenient Tenor
Check if the FD issuer offers a convenient timeline that aligns with one’s financial goals. For instance, investors could opt for short-term FDs to suit their immediate requirements. However, if they are looking for a long-term investment option, they must choose a longer tenor.
Choose a Suitable Payout Frequency
Based on one’s financial goals, investors can opt for a cumulative or non-cumulative FD. When planning to earn a regular income from a₹1 Crore FD, opt for the monthly or quarterly payout options.
In conclusion, investors should book an FD based on their investment goals and requirements. If they have doubts or require a clearer picture of their returns, they must use the FD calculator.
Simply enter the amount, tenor, and FD rate to check the monthly interest one would likely earn across the tenor. Tools like these simplify planning and help invest effectively and appropriately.
