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Updated on: 28 Dec 2023 | 6 min read
Imagine you have saved a significant amount from your hard-earned money, say ₹ 50 lakh. Now you want to invest this money in FDs but are not sure which bank provides what interest rate and how much interest monthly will you earn in absolute terms. Well, we are here to do this research for you.
In this blog, we have extensively researched and tabulated the interest rates provided by various banks and other financial institutions and also worked out the corresponding amount of monthly interest based on the same.
Public Sector Bank
| Bank Name | Interest rate (Regular) | ₹ 50 Lakh FD interest monthly | Interest rate (Senior Citizen) | ₹ 50 Lakh FD interest monthly |
|---|---|---|---|---|
| Punjab National Bank | 7.25% | 30,208/- | 7.75% | 32,292/- |
| Indian Overseas Bank | 7.25% | 30,208/- | 7.75% | 32,292/- |
| Indian Bank | 7.25% | 30,208/- | 7.75% | 32,292/- |
| State Bank of India | 7.10% | 29,583/- | 7.60% | 31,667/- |
| Union Bank of India | 6.70% | 27,917/- | 6.95% | 28,958/- |
Private Sector Bank
| Bank Name | Interest rate (Regular) | ₹ 50 Lakh FD interest monthly | Interest rate (Senior Citizen) | ₹ 50 Lakh FD interest monthly |
|---|---|---|---|---|
| DCB Bank | 7.90% | 32,917/- | 8.50% | 35,417/- |
| Bandhan Bank | 7.85% | 32,708/- | 8.35% | 34,792/- |
| RBL Bank | 7.80% | 32,500/- | 8.30% | 34,583/- |
| YES Bank | 7.75% | 32,292/- | 8.25% | 34,375/- |
| IndusInd Bank | 7.25% | 30,208/- | 8.25% | 34,375/- |
NBFC FDs
| NBFC | Interest rate (Regular) | ₹ 50 Lakh FD interest monthly | Interest rate (Senior Citizen) | ₹ 50 Lakh FD interest monthly |
|---|---|---|---|---|
| Shriram Finance | 8.18% | 34,083/- | 8.68% | 36,167/- |
| Bajaj Finance Limited | 8.05% | 33,542/- | 8.28% | 34,500/- |
| PNB Housing Finance Limited (Non-cumulative option) | 7.58% | 31,583/- | 7.88% | 32,833/- |
| Mahindra Finance Limited (Non-cumulative option) | 7.50% | 31,250/- | 7.75% | 32,292/- |
| LIC Housing Finance | 7.25% | 30,208/- | 7.50% | 31,250/- |
Small Finance Bank
| Bank Name | Interest rate (Regular) | ₹ 50 Lakh FD interest monthly | Interest rate (Senior Citizen) | ₹ 50 Lakh FD interest monthly |
|---|---|---|---|---|
| Unity Small Finance Bank | 9.00% | 37,500/- | 9.50% | 39,583/- |
| Suryoday Small Finance Bank | 8.60% | 35,833/- | 9.10% | 37,917/- |
| Fincare Small Finance Bank | 8.51% | 35,458/- | 9.11% | 37,958/- |
| Ujjivan Small Finance Bank | 8.25% | 34,375/- | 8.75% | 36,458/- |
| AU Small Finance Bank | 8.00% | 33,333/- | 8.50% | 35,417/- |
*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 Rs. 50,00,000 for one year at a 6% interest rate compounded quarterly:
A = ₹ 53,06,818/-
To find the annual interest, subtract the maturity amount from the deposited sum:
Annual interest = ₹ 3,06,818/-
For monthly interest, divide the annual interest by 12:
Monthly interest = ₹ 25,568/-
Following are the people eligible for FD
Following are the documents that are required to open FD
What is the penalty for early withdrawal of a 50 lakh FD?
If an investor decides to withdraw the FD before the completion of tenure then the bank may charge a penalty for the same.
Can I get a loan against 50 lakh FD?
Yes, investors can get the loan against 50 lakh FD in case of a financial emergency. Banks offer loans ranging from 60% to 90% of the deposited amount. Also, the rate of interest is lower as compared to regular loans.
Can I make a 50 lakh fixed deposit in the name of a minor alone?
Yes, it is possible to deposit in the name of a minor. However, the minor must be represented by their natural or legal guardian. The application form for the deposit must be signed by the guardian on behalf of the minor. All communication regarding the deposit will be addressed to the guardian.
Can I get monthly interest on my Fixed Deposit?
Yes, you can get monthly interest on a non-cumulative fixed deposit. Financial institutions offer the option of monthly, quarterly and annual payouts, allowing you to have a fixed source of income.
