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.
1. Interest on 1 crore will make for a good salary in itself in India, helping meet various expenses.
2. 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!
3. The income amount will naturally depend on the rates of interest offered by various Indian banks and financial institutions.
4. A higher rate of interest will naturally guarantee a higher monthly payout and so on.
5. 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.
6. 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.
1 Crore FD Interest / Month
Monthly Interest on 1 Crore FD
7% 6.50% 5.50% 5%
₹ 58,333 ₹ 54,167 ₹ 45,833 ₹ 41,666
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%
1. You should be more than 18 years of age.
2. You should complete all KYC procedures while submitting your age, address and identity proof documents.
3. You should have your PAN Card.
4. Minors may have FDs opened for them under the stewardship of their legal guardians.
1. Proof of Address- Telephone, Electricity or Mobile Bill, Bank Statement with Cheque, etc.
2. Signature Proof- PAN Card, Passport, Driving License, etc.
3. Identity Proof- PAN Card, Passport, Driving License, Photograph Ration Card, Government Identity Card, etc.
There are various tax-related aspects that you should consider in this regard. They include the following:
1. Interest income is completely taxable on your 1 crore fixed deposit (FD).
2. It will be taken as Income from other sources while filing your ITR.
3. 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.
4. If the total income is lower than the minimum taxable sum, then you will not have to pay taxes on your interest income.
5. 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.