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Monthly Interest on 50 Lakh Fixed Deposit

Updated on: Oct 31st, 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.

Monthly Interest for 50 Lakhs in FD 2023

BanksIndividualSenior Citizen
Interest rate₹ 50 Lakh FD interest monthlyInterest rate₹ 50 Lakh FD interest monthly
Public Sector Bank    
Punjab National Bank7.25%30,208/-7.75%32,292/-
Indian Overseas Bank7.25%30,208/-7.75%32,292/-
Indian Bank7.25%30,208/-7.75%32,292/-
State Bank of India7.10%29,583/-7.60%31,667/-
Union Bank of India6.70%27,917/-6.95%28,958/-
Private Sector Bank    
DCB Bank7.90%32,917/-8.50%35,417/-
Bandhan Bank7.85%32,708/-8.35%34,792/-
RBL Bank7.80%32,500/-8.30%34,583/-
YES Bank7.75%32,292/-8.25%34,375/-
IndusInd Bank7.25%30,208/-8.25%34,375/-
Shriram Finance8.18%34,083/-8.68%36,167/-
Bajaj Finance Limited8.05%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 Finance7.25%30,208/-7.50%31,250/-
Small Finance Bank    
Unity Small Finance Bank9.00%37,500/-9.50%39,583/-
Suryoday Small Finance Bank8.60%35,833/-9.10%37,917/-
Fincare Small Finance Bank8.51%35,458/-9.11%37,958/-
Ujjivan Small Finance Bank8.25%34,375/-8.75%36,458/-
AU Small Finance Bank8.00%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)

Calculating Monthly Interest on a ₹ 50 Lakh FD - Alternate Method

To calculate interest for cumulative FDs, you can use the following formula:

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

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/-

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.


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.

Earn once in a decade
returns on FD

Lock in returns as high as
8.61% before they go down

Top Banks FD Rates

Understanding Fixed Deposit