Monthly Interest on 5 Lakh Fixed Deposit

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

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 ₹ 5,00,000 for one year at a 6% interest rate compounded quarterly:
A = 5,00,000 * (1 + 0.06/4)^(4*1)
=  ₹ 5,30,682/-
To find the annual interest, subtract the maturity amount from the deposited sum:
Annual interest = ₹ 30,682/-
For monthly interest, divide the annual interest by 12:
Monthly interest = ₹ 2,557/-

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, association, clubs and societies
• NRIs 18 years or above

Following are the documents that are required to open FD

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