1 Crore FD Interest Per Month – 1 Crore Fixed Deposit Interest Per Month in Popular Indian Banks 2023

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Updated on May 04, 2023

1 Crore Fixed Deposit (FD) Bank Interest Per Month 2023, India – An Introduction

1 crore FD interest per month sounds like a good proposition, especially for those seeking steady fixed income minus any market fluctuations or volatility. Here is a handy guide towards the same.

While earning 1 crore interest per month would require you to invest a humungous amount (running into numerous zeroes), you can always look up 1 crore fixed deposit how much income per month if that is what you are targeting at retirement.

Key Points worth noting on a 1 Crore FD Interest Per Month Basis

  • In fact, a majority of Indian investors always prefer fixed deposits or FDs since these are safe and secure investment plans with guaranteed returns and regular payouts (monthly/quarterly),while there are tax-saver options available as well.
  • Interest on 1 crore will make for a good salary in itself in India, helping meet various expenses.
  • In some cases, for those who have accumulated the corpus already and then some, interest on 1 crore FD may help them retire early to pursue other passions as well!
  • The income amount will naturally depend on the rates of interest offered by various Indian banks and financial institutions.
  • A higher rate of interest will naturally guarantee a higher monthly payout and so on.
  • Suppose your bank is giving you an interest rate of 5% per month. In this case, your earnings will be INR 5,00,000 per year or roughly INR 41,667 per month.
  • If the bank gives you an interest rate of 6%, then you will get INR 6,00,000 annually or roughly INR 50,000 per month.
  • This is how a small difference in the rate of interest makes a big difference in your monthly income from the FD.

Also Read: Monthly interest for 5 Lakh FD investment

Monthly Interest for Rs 1 Crore Fixed Deposit – 1 Crore FD Interest Calculation Annually and Monthly 2023

1 Crore FD Interest Per Month Annual Income On 1 Crore Fixed Deposit Monthly Interest on 1 Crore FD
7% ₹ 7 Lakhs ₹ 58,333
6.50% ₹ 6.5 Lakhs ₹ 54,167
5.50% ₹ 5.5 Lakhs ₹ 45,833
5% ₹ 5 Lakhs ₹ 41,666

Also Read: Best FD Rates in India

Popular Banks Interest Rate 2023 for 1 Crore FD

There are many queries about pertaining to interest for 1 crore in SBI per month or other banks. Here are the details related to monthly interest for 1 crore in banking and non-banking financial institutions. Note that senior citizens get an extra 0.25-0.75% incentive for interest rates.

Here are the average interest rates at leading banking and financial institutions (note that rates are subject to change).

Name of the Banking Institution Regular Customers (per annum) Senior Citizens (per annum)
ICICI Bank 2.50% to 4.40% 2.50% to 4.40%
State Bank of India 2.90% to 5.40% 3.40% to 6.20%
Punjab National Bank 2.90% to 5.25% 3.50% to 5.75%
HDFC Bank 2.50% to 5.50% 3.00% to 6.25%
Axis Bank 2.50% to 5.75% 2.50% to 6.50%
Canara Bank 2.90% to 5.25% 2.90% to 5.75%
IDFC Bank 2.75% to 5.75% 3.25% to 6.25%
Punjab and Sind Bank 3.00% to 5.30% 3.50% to 5.60%
Bank of Baroda 2.80% to 5.25% 3.30% to 5.75%
Bank of India 2.85% to 5.05% 3.35% to 5.55%

Also Read: Post Office Recurring Deposit (RD) Interest Rate

₹1 crore FD Interest Per Month Offered by NBFCs

NBFC Rate of Interest Interest Amount/Month Maturity Sum
Bajaj Finance FD 7.90% ₹63,583 ₹1,46,25,382
PNB Housing Finance FD 7.75% ₹60,417 ₹1,43,56,293
Mahindra Finance FD 8.00% ₹62,500 ₹1,46,93,281

₹1 Cr FD Interest Per Month Offered by Banks

Bank Name

Rate of Interest

Monthly Interest Paid

Maturity Sum

State Bank of India

7.50%

₹74,991

₹1,44,99,480

HDFC Bank

7.75%

₹77,973

₹1,46,78,429

Punjab National Bank

7.00%

₹69,129

₹1,41,47,782

Axis Bank

7.75%

₹77,973

₹1,46,78,429

Bank of India

6.75%

₹63,752

₹1,39,74,987

IDFC Bank

7.50%

₹74,991

₹1,44,99,480

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Factors that may affect Fixed Deposit Interest Rates

As you plan to open an FD account, certain factors may affect the interest rates. Here are a few of them discussed below:

  • The first is the depositor type. If it is a senior citizen, the depositor will get an additional interest of 0.25% to 0.5% on their fixed deposits
  • The next is the tenure of the deposit. If the tenure is lesser, the interest rate will be lower. If the tenure is medium or more, the interest rate will be higher
  • Last but not the least, is the deposit amount. If the deposit amount is higher, so will be the interest rates.

Also Read: How to double your money

Eligibility Guidelines for 1 Crore FD Investment in India

  • You should be more than 18 years of age.
  • You should complete all KYC procedures while submitting your age, address and identity proof documents.
  • You should have your PAN Card.
  • Minors may have FDs opened for them under the stewardship of their legal guardians.

Also Read: Best pension plan in India

Documents Required for 1 Crore FD Investment

  • Proof of Address- Telephone, Electricity or Mobile Bill, Bank Statement with Cheque, etc.
  • Signature Proof- PAN Card, Passport, Driving License, etc.
  • Identity Proof- PAN Card, Passport, Driving License, Photograph Ration Card, Government Identity Card, etc.
  • Senior citizens are required to submit some extra documents including Form 15 H and their age proof.

Also Read: LIC plan – 5 years double money

Fixed Deposits for Senior Citizens

The features that differentiate senior citizens from the general public are mentioned herein below:

  • At the time of opening an FD account, the depositor should be at least 60 years or above
  • The tenure is 7 days to 10 days
  • Senior citizens can get a loan against their FD account
  • The interest rates are higher for senior citizens by 0.25% to 0.50%. However, it all depends on the bank
  • On premature withdrawals, the penalties for senior citizens are the same as for the general public.

Also Read: Post office gram suraksha scheme calculator

Types of Fixed Deposits in India

As the types of FD is concerned, here are some of its types mentioned below:

  • Normal Fixed Deposits
  • Flexi Fixed Deposits
  • Tax-Saving Fixed Deposits
  • NRI Fixed Deposits
  • Cumulative/Non-Cumulative Fixed Deposits
  • Senior Citizen Fixed Deposits

Also Read: Annuity deposit scheme calculator

Advantages of Fixed Deposits (FD)

Fixed Deposits come with several advantages. Here are some of them discussed:

  • They come with flexible tenures
  • As per RBI, the money you deposit is insured for around INR 1 lakh
  • There is no market risk linked to the returns on the fixed deposits; therefore, it is considered low risk
  • If there is an emergency of funds, you can liquidate your FD
  • You can actually earn on your deposits
  • At quite low-interest rates, you will be able to get loans of up to 90% of your deposit amount
  • According to your needs on a monthly, quarterly, or yearly basis, you would be able to get the interest sum credited
  • As compared to other customers of different age groups, senior citizens get a higher interest rate on their FD
  • On your FD account, you can avail of tax deductions of up to INR 1.5 lakh.

Also Read: Is lic maturity amount taxable

Taxation Aspects of Fixed Deposit Account

There are various tax-related aspects that you should consider in this regard. They include the following:

  • Interest income is completely taxable on your 1 crore fixed deposit (FD).
  • It will be taken as Income from other sources while filing your ITR.
  • If interest income from all your FDs is lower than Rs. 40,000, then TDS will not be deducted by your bank. If it crosses this amount, then 10% TDS will be deducted.
  • If the total income is lower than the minimum taxable sum, then you will not have to pay taxes on your interest income.
  • Yet, there will still be a 10% TDS deduction. In this case, you will then have to provide Forms 15G and 15H to the bank at the start of each financial year for preventing the deduction of the TDS.
  • However, if you are in the 20/30% and higher tax brackets, then you will have to pay the remaining tax amount from your own pocket before filing ITR.

Also Read: Best Fixed-income Investment Options That Offer Guaranteed Returns

TDS on a Monthly Interest for ₹1 crore FD

Most banks in India along with the non-banking financial institutions do not levy TDS on fixed deposits where the interest earned is within INR 40,000. But if the interest earned is beyond 40,000 the FD interest amount is taxable. Hence, if you are investing in an INR 1 crore FD monthly interest, it will be completely taxable.

So, 10% tax would be deducted by banks in the form of TDS on the INR 1 crore FD per month. Further, if the investor comes under the high-income category, as additional pay of taxes would be charged at the time of filing your returns.

Popular General Insurance Companies India, 2023

How to open an FD Account in India – Online and Offline Modes?

Opening an FD is no big deal these days. You can choose to do it either from the comfort of your home or by visiting the nearest bank. Let us discuss both at length.

1. Online

You can access the internet banking facility of a bank with which you have an account. This is mostly available in the form of an app. You just have to fill up an online form and submit it to open your FD account. And since you already have an account in the bank, you would not be required to provide KYC. By using the internet facility, you will be able to transfer funds to the FD account.

2. Offline

You can visit the nearest branch of the bank with which you already have an account. You can ask for an FD form which you have to fill up to open an FD account. Once you have duly filled it out, you have to submit it along with the necessary documents. You also have to deposit the required amount for which you will receive a receipt.

Conclusion

As you can see, 1 crore FD interest per month will help you earn a steady, guaranteed and worry-free income. You can accumulate this corpus and put it into an FD (fixed deposit) for keeping your funds safe while earning enough to cover all your monthly expenses. It may also help you retire early with a safety net, and then follow other passions or entrepreneurial pursuits.

Also Read: Post Office Fixed Deposit Interest Rates 2023

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FAQs: 1 Crore Fixed Deposit Interest Per Month in Popular Indian Banks 2023

Is 1 crore FD interest income taxable?

Yes, the interest earned on an investment in a Fixed Deposit (FD) of Rs. 1 crore is fully liable for income tax payment. In case the monthly income earned from a 1 crore FD is less than Rs. 40,000, no TDS is deducted. However, if it is more than Rs. 40,000, the bank is authorized to deduct 10% TDS.

How to calculate 1 crore FD interest per month?

In order to compute the monthly interest, it is important to determine the rate of FD. The simple way to calculate is that the higher the rate of FD, the higher is the monthly interest.

How much is the monthly 1 crore FD interest if the annual interest rate is 7%?

For an investment of 1 crore, the monthly FD interest at an annual interest rate of 7% would be Rs. 58,333.

What is the interest of 1 crore per month in SBI?

The SBI bank offers a monthly interest of 3.40% - 6.30% on an investment of Rs. 1 crore.

Which is the best type of FD?

The best type of FD is considered to be the NRE Fixed Deposits. The interest you will earn on an NRE Fixed deposit will be tax-free. This means you can get both principals as well as interests.

Is FD considered high-risk?

No, FD is considered low risk as it is not linked to market risk. You can have an idea of the kind of money that you will be getting back and at which rate it is growing.

Is FD for 5 years anyway beneficial?

An FD account for 5 years is also called a Tax-Saving FD. Under Section 80C of the Income Tax Act, 1961, you will be eligible for tax deductions as you have an FD for 5 years.

What is the interest rate offered by banks on FDs?

The interest rates of FDs differ from one bank to the other. For example, the FD interest rate for general customers in HDFC Bank is 5.75%, while for senior citizens is 6.25%. The FD interest for general customers in Kotak Mahindra Bank is 2.75% - 4.50%, while 3.25% - 5.00% for senior citizens.

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Mar 10, 2022
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