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1 Crore FD Interest Per Month

Updated on: 21 Dec 2023 | 6 min read

The best part about investing in a Fixed Deposit (FD) is that you enjoy an assured rate of return. The scheme allows you to choose a deposit tenure between seven days and ten years. Once invested, the capital will earn a fixed interest rate for a fixed term, predetermined by you. FDs offer a significantly greater rate of interest in comparison to savings accounts while having comparable associated risks and thus serve as an ideal choice for risk-averse investors.

The financial institutions fix the rate depending on the deposit amount and chosen deposit tenure. Depending on the nature of the interest payout, FDs can be segregated into cumulative and non-cumulative. In the cumulative scheme, the interest gets accumulated and compounded alongside the principal and paid on maturity. In other words, the interest in your FD will earn interest, thus taking your corpus higher. Alternatively, you can choose the non-cumulative FD scheme wherein the interest is paid at periodic intervals – monthly, quarterly, bi-annually, or annually – as per your preference.

For higher value deposits like Rs.1 crore, 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.
Through this article, let’s try and understand what would be Rs.1 crore FD interest per month.

Comparison of Top 20 Scheduled Banks based on FD Rates

BanksHighest FD rate (% p.a.)1-year FD rate (% p.a.)3-year FD rate (% p.a.)5-year FD rate (% p.a.)Additional interest rate for senior citizens (% p.a.)
Unity Small Finance Bank97.357.657.650.5
Shivalik Small Finance Bank8.658.1870.5
Fincare Small Finance Bank8.617.658.1180.6
Suryoday Small Finance Bank8.66.858.68.250.5
Equitas Small Finance Bank8.
Jana Small Finance Bank8.588.57.250.5
ESAF Small Finance Bank8.566.756.250.5
Utkarsh Small Finance Bank8.588.57.50.6
SBM Bank8.
Ujjivan Small Finance Bank8.
AU Small Finance Bank86.7587.250.5
DCB Bank7.
Bandhan Bank7.857.257.255.850.50-0.75
Induslnd Bank7.857.
RBL Bank7.877.17.10.5
IDFC First Bank7.756.57.2570.5
YES Bank7.
Punjab & Sind Bank7.46.4660.5
Punjab National Bank7.256.7576.50.5
Bank of Baroda7.256.757.256.50.50-1.00

Monthly Interest for Rs. 1 Cr FD

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


For Individuals below 60 years

Deposit amountInterest rateCompounding frequencyAnnual interest incomeMonthly interest income
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


For Individuals above 60 years

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 amountInterest rateCompounding frequencyAnnual interest incomeMonthly interest income
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

An alternate method of 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)


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

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.

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.

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.


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.

Will there be a penalty for early withdrawal of an FD?

Recently, RBI has released a circular increasing the non-penalty withdrawal amount from 15 lakhs to 1 crore. So, you can prematurely withdraw your FDs up to 1 crore. If you withdraw more than that, the penalty will result in a lower interest payout, ranging from 0.5% to 1%

Can I take a loan against my 1 crore Fixed Deposit?

Yes, you can take a loan against FD if you urgently require funds. Banks generally offer loans ranging from 60% to 90% of the deposited amount.

What is the minimum amount I can invest in an FD?

The minimum investment amount for FD varies from bank to bank. However, it usually begins with Rs 5000.

What is the maximum amount I can invest in an FD?

The maximum investment amount for FD also varies from bank to bank. However, it is generally capped at Rs.1 crore.

What is the minimum and maximum tenure for investing in an FD account?

The minimum tenure for a fixed Deposit is seven days, and the maximum is 10 years


Top Banks FD Rates

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