Rs. 1 Crore Fixed Deposit (FD) Interest Per Month 2024

7 min read • Published 22 November 2022
Written by Anshul Gupta
1 crore fd interest per month

Are you also curious to know how much FD monthly interest you can generate on the fixed deposit of Rs. 1 Crore? Then, this article is specially made for you. On 1 cr fd, the interest can range between 3-7% depending on the tenure. In most cases, the longer the term, the higher your returns because of the incremental holding period risk. Moreover, if you are a senior citizen, you will be offered an interest rate higher by 0.50-0.75% than a regular FD.

Also Read: Experience financial growth with unmatched Bajaj Finance FD Rates

In this article, you’ll know in detail about the FD interest rate and interest amount you can earn of 1 cr fd in different banks like SBI & HDFC, NBFCs and in the post office.

Points to Know Before Determining the FD Interest on 1 Crore

To calculate the monthly interest on Rs. 1 crore deposits, you must determine the annual interest on your deposit. Now, divide this interest by 12 to get the monthly interest. However, before you do that, here are some points that you need to keep in mind:

  • The senior citizen interest rate is higher. So, if your age is 60 or more or if you open a fixed deposit account in the name of a senior citizen, you will be entitled to a relatively higher rate.
  • The interest rate depends on the deposit tenure. In most cases for longer tenures, the interest rate is higher.
  • Some financial institutions compound the interest quarterly. In such cases, the interest income would increase. So, check the compounding frequency when calculating the Rs.1 crore FD interest per month.
  • Different financial institutions have different rates of interest. So, the interest income will also be dependent on your choice of financial institution at which you would like to park your FD.

1 Crore FD Interest Per Month in 2024

Now, let’s check the Rs.1 crore FD interest per month for a non-senior citizen, using some sample interest rates:

Deposit amountFD Interest rateCompounding frequencyAnnual interest income1 CR FD Monthly interest
Rs.1 crore4.5%AnnualRs.4,50,000Rs.37,500
Rs.1 crore5%Half-yearlyRs.5,06,250Rs.42,187.50
Rs.1 crore5.5%QuarterlyRs.5,61,448Rs.46,787.33

Monthly Interest Rate on 1 CR for Senior Citizens

If you are a senior citizen, your FD interest rate will increase by an additional 0.5%. In that case, the monthly interest would be as follows:

Deposit amountFD Interest rateCompounding frequencyAnnual interest income1 CR FD Monthly interest
Rs.1 crore5%AnnualRs.5,00,000Rs.41,666.67
Rs.1 crore5.5%Half-yearlyRs.5,57,563Rs.46,463.58
Rs.1 crore6%QuarterlyRs.6,13,636Rs.51,136.33

Rs 1 Crore FD Interest Per Month Offered by Indian Banks in 2024

Bank NameRate of Interest1 CR FD Monthly Interest
State Bank of India6.5%₹54,167
HDFC Bank7%₹58,333
Punjab National Bank6.5%₹54,167
Axis Bank7%₹58,333
Bank of India6%₹50,000
IDFC Bank7%₹58,333
Bank NameRate of Interest for Senior Citizens1 CR FD Monthly Interest
State Bank of India7.5%₹62,500
HDFC Bank7.75%₹64,583
Punjab National Bank7.3%₹60,833
Axis Bank7.75%₹64,584
Bank of India6.75%₹56,250
IDFC Bank7.5%₹62,500

Monthly FD Interest on 1 CR by NBFCs in 2024

NBFCRate of InterestInterest Amount/MonthMaturity Sum
Bajaj Finance FD7.90%₹63,583₹1,46,25,382
PNB Housing Finance FD7.75%₹60,417₹1,43,56,293
Mahindra Finance FD8.00%₹62,500₹1,46,93,281

Alternate Method For Calculating Monthly Interest on Rs.1 Cr FD

The interest can be calculated by subtracting the deposited amount from the maturity amount. The following methodology is apt for cumulative FDs.:

A = P (1 + R/N) (T^N)

Here,

A – Maturity amount

P – Deposited amount

R – Interest rate

N – Compounding frequency

T – Deposit term

For example, if you deposit Rs.1 crore for one year at 6% interest compounded quarterly, the amount would be calculated as follows:

A = 1,00,00,000 * (1 + 0.06/4) ^ (1 ^ 4)

= Rs.1,06,13,635.50

You get the annual interest income by deducting the maturity amount from the deposited amount.

So, annual interest = Rs.Rs.1,06,13,635.50 – Rs.1,00,00,000

= Rs.6,13,636

The monthly interest would be Rs.6,13,636/12 = Rs.51,136

Also Read: Inflation Affect Your Retirement Planning

Eligibility Criteria for Rs. 1 CR FD 

The following categories of investors are eligible for the Rs.1 crore FD scheme:

  • Resident Indians or NRIs 18 years or above.
  • Overseas Citizens of India (OCIs) or Persons of Indian Origin (PIOs).
  • HUFs (Hindu Undivided Families).
  • Sole-proprietorship businesses
  • Partnership firms
  • Family trusts
  • Companies, associations, clubs, and societies.

Documents Required for FD Scheme

To open a fixed deposit account for Rs.1 crore, the following documents would be required:

  • A duly-filled account opening application form
  • A valid ID proof like:
    • Aadhaar card
    • PAN card
    • Voter’s ID card
    • Passport
    • Driving licence
    • Government-issued identity card
    • Photo ration card
    • Any other document issued by a recognised authority carrying your photograph
  • Valid address proof like:
    • Aadhaar card
    • Passport
    • Voter’s ID card
    • Driving licence
    • Utility bills like the phone bill, gas bill, etc.
    • Rent agreement
    • Property deed, etc.

Also Read: Tax Saving FD Interest Rates 2024

Types of Fixed Deposits in India

India offers a multitude of Fixed Deposit types, which are as follows:
Regular FDs, Cumulative FDs, Tax-Saver FDs, Senior Citizen FDs, Non-cumulative FDs, Floating FDs, Recurring FDs, Sweep-in FDs, and Corporate FDs.

Final Thoughts

Rs.1 crore fixed deposit can create a regular stream of monthly inflows through its interest income. Since the deposit is considerable, the monthly interest income would also be high. So, knowing how to calculate the Rs.1 crore FD interest per month is crucial. For ease of computing, you can use the online fixed deposit calculators. Depending on your needs, you can choose to accumulate the interest over the deposit tenure or withdraw it periodically. Choose a higher tenure FD scheme for better returns.

FAQs

Do I have to pay tax on my interest income from Rs.1 crore fixed deposits?

If you are below 60, your interest income from Rs.1 crore fixed deposits above Rs. 10,000 would be fully taxable. In this case, the interest gets added to the head ‘income from other sources’ and taxed at your income tax slab rate.
However, interest income up to Rs.50,000 can be claimed as a deduction from your taxable income if you are a senior citizen. This deduction is available under Section 80TTB of the Income Tax Act, 1961. However, if this income exceeds Rs.50,000, it would be taxed in your hands.

Will TDS be deducted from the monthly interest on Rs.1 crore FD?

If you are below 60 years and your aggregate interest income exceeds Rs.40,000 in a financial year, TDS would be deducted from the interest income. The financial institution would deduct TDS at 10% before crediting the income to your account. However, if you are a senior citizen, the limit for TDS deduction is Rs.50,000. If you fall in the higher tax bracket of 20% or 30%, you must pay the differential tax on the interest income when you file your income tax returns.

Will Rs.1 crore FD give any tax benefit on investments?

If you open a 5-year tax-saving FD account with a bank or a post office, the amount you deposit is allowed as a deduction under Section 80C of the Income Tax Act, 1961. However, the deduction limit is Rs.1.5 lakhs. So, if you deposit Rs.1 crore, you can claim a deduction on investments up to Rs.1.5 lakhs only.

Can I close the fixed deposit account prematurely?

Yes, many banks, NBFCs and post offices allow premature closure of the fixed deposit account with penalty. Different financial institutions may apply different penalties for premature closure.

How to open the Rs.1 crore fixed deposit account?

You can open the Rs.1 crore fixed deposit account online or offline. For online deposits, visit the financial institution’s website or mobile app and make the deposit. Offline deposits require a physical application at the branch.

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Anshul Gupta

Co-Founder
IIT Roorkee Alumnus and CFA with experience of structuring debt products worth more than 15000Cr for institutional and retail investors.

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