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# Monthly Interest on 10 Lakh Fixed Deposit

Updated on: 31 Oct 2023 | 5 min read

Have you ever imagined having the flexibility to earn interest on your substantial investment every month? Our 10 Lakh Fixed Deposit scheme offers just that – a significant investment option with monthly interest payouts. In this blog, we will deep dive into the details of this attractive financial instrument, explore the enticing interest rates it provides, and discuss how it can become your pathway to financial stability and growth.

## Monthly Interest for 10 Lakhs in FD 2023

*The interest is calculated using the Simple Interest formula
Interest on FD= Amount invested x Interest rate x (Duration/12 months)

## Calculating Monthly Interest on a ₹ 10 Lakh FD - Alternate Method

To calculate interest for cumulative FDs, you can use the following formula:
A = P (1 + R/N)^(N*T)

Where:
A – Maturity amount
P – Deposited amount
R – Interest rate
N – Compounding frequency
T – Deposit term

For instance, if you deposit ₹ 10,00,000 for one year at a 6% interest rate compounded quarterly:
A = ₹ 10,61,364/-
To find the annual interest, subtract the maturity amount from the deposited sum:
Annual interest = ₹ 61,364/-
For monthly interest, divide the annual interest by 12:
Monthly interest = ₹5,114/-

## Eligibility Criteria for FD

Following are the people eligible for FD

• Resident Indian
• Overseas Citizen of India or Person of Indian Origins
• HUFs
• Sole-proprietorship
• Partnership firms
• Family Trusts
• Companies, associations, clubs and societies
• NRIs 18 years or above

## Documents required for FD

Following are the documents that are required to open FD

• A completed account opening application form.
• A valid ID proof, which can include: an Aadhaar card, PAN card, Voter's ID card, Passport, Driving licence,
• Government-issued identity card, Photo ration card, or Any other official document with your photograph.
• A valid address proof, which can include: an Aadhaar card, Passport, Voter's ID card, Driving licence, Utility bills like phone or gas bills, Rent agreement, Property deed etc.

## FAQs

What happens if I need to prematurely withdraw my 10 lakh FD with monthly interest?

In case of a financial emergency, you can withdraw your FD prematurely, it's just that it will come with a penalty and reduced interest rate.

Can I withdraw the interest amount monthly or does it accumulate?

Investors can choose any of the options as both options are available. They can either withdraw the interest monthly or accumulate it with a principal amount.

Is there any security available on 10 Lakh FD?

DICGC gives insurance to banks of ₹ 5 lakh per bank per individual. So in the case of 10 lakh FD, only 5 lakh is secured under DICGC insurance.

What is 10 lakh FD monthly interest?

The monthly interest on 10 lakh FD starts from ₹ 5,000/- and goes up to ₹8,000/- depending upon the bank/financial institution the investor chooses.

What is the minimum and maximum tenure available for FD investment?

FD investment starts from 7 days to 10 years. Investors can choose the tenure based on their financial goals and risk appetite.

Dec 6, 2023

Dec 5, 2023