When planning to invest a fairly significant amount, a thorough analysis across different FD issuers is essential. This is because your eventual earnings will depend on the investment tenure and applicable FD rates. Let’s understand this better with an example. Suppose you decide to open a ₹10 lakh fixed deposit account, offering a 7.25% interest rate per annum for 3 years. In this case, you will receive a monthly interest payout of ₹6,042 and the total interest earned over the entire investment period will be ₹2,17,500.
Monthly Interest on a ₹10 Lakh Fixed Deposit
The table below outlines potential interest yields for a 5-year ₹10 lakh fixed deposit:
Interest Rate (p.a.) | Interest Payout Per Month (in ₹) |
| 6.00% | 5,000 |
| 6.50% | 5,417 |
| 7.00% | 5,833 |
| 7.50% | 6,250 |
| 8.00% | 6,666 |
| 8.50% | 7,083 |
| 9.00% | 7,500 |
| 9.50% | 7,916 |
| 10.00% | 8,333 |
Note: Your actual monthly returns from a fixed deposit account are most likely to vary depending on your provider. The above-mentioned payouts are merely indicative.
₹10 Lakh Fixed Deposit Interest Provided by Top Banks and NBFCs in 2024
The monthly interest earnings vary due to individual bank or NBFC policies. Below, you may review the potential payouts over a 5-year time frame.
| Bank/NBFC | Interest Rate (p.a.) for General Citizens | Monthly Payout (in ₹) in case of General Citizens | Interest Rate (p.a.) for Senior Citizens | Monthly Payout (in ₹) in case of Senior Citizens |
| Bajaj Finance | 7.91% | 6,591 | 8.65% | 7,208 |
| Paytm Payments Bank | 7.25% | 6,041 | 7.75% | 6,458 |
| Axis Bank | 7.00% | 5,833 | 7.50% | 6,250 |
| Punjab National Bank | 7.25% | 6,041 | 7.75% | 6,458 |
| HSBC Bank | 7.70% | 6,416 | 8.00% | 6,666 |
| Ujjivan Small Finance Bank | 7.20% | 6,000 | 7.70% | 6,416 |
| State Bank of India | 6.50% | 5,416 | 7.50% | 6,250 |
| YES Bank | 7.25% | 6,041 | 8.00% | 6,666 |
| IndusInd Bank | 7.25% | 6,041 | 7.75% | 6,458 |
| Kotak Mahindra Bank | 6.20% | 5,166 | 6.70% | 5,583 |
Note: These listed FD interest rates for a 5-year fixed deposit account can change later on at the discretion of the concerned institution.
Yearly Interest on a ₹10 Lakh FD Account
With a ₹10 lakh fixed deposit earning 8.05% interest per year, the earnings breakdown for various time frames would be:
| Investment Term | Annual Payout (in ₹) |
| 12 months or 1 year | 10,80,500 |
| 24 months or 2 years | 11,67,480 |
| 36 months or 3 years | 12,61,462 |
| 48 months or 4 years | 13,63,010 |
| 60 months or 5 years | 14,72,732 |
Note: These figures are aimed to help explain FD yields but actual payouts can vary depending on the bank or NBFC you choose.
TDS on a ₹10 Lakh Fixed Deposit
Fixed deposit holders must pay TDS on their profit or interest earned if the amount crosses a specific threshold. Thus, it is crucial to be aware of the tax norms before investing in fixed deposits.
Here are some key details:
- You do not need to worry about TDS deductions if the annual return from your FD does not cross ₹40,000. For senior citizens, this upper limit has been set to ₹50,000.
- Beyond the predetermined limit, you need to furnish a 10% TDS amount.
- Fixed deposit account holders who do not submit their PAN card details, need to bear 20% TDS on their yearly profits.
Penalty for Withdrawing a ₹10 Lakh Fixed Deposit Before Maturity
Although many financial organisations allow premature withdrawals to their FD customers, in some cases you may have to bear a penalty. Typically, the penalty charges are paired with reduced interest charges which in turn lowers your estimated returns by 0.5%-1%. Here, the interest rate is determined by the tenure that you have already completed before deciding to withdraw your funds.
Important Things to Consider Before Investing ₹10 Lakh in a Fixed Deposit
Before investing a substantial corpus of ₹10 lakh in an FD, ensure you consider the following three pointers:
Interest Rate
Different FD providers offer distinct interest rates over varying tenures. Therefore, depending on your financial goals, you should look for various available options online and eventually pick an institution that guarantees a highly competitive yearly rate of interest.
Premature Withdrawal Clause
When a customer decides to close their FD account before the end of term such a scenario is referred to as premature withdrawal. Situations may arise where you may need your FD funds during an emergency. Thus, it is suggested that you check how your preferred bank or NBFC can charge penalties if you ever make a premature withdrawal.
Loan Against Fixed Deposit
Fixed deposit holders can avail secured loans against their investments at reasonable rates. Your bank can provide up to 90% of your principal as the loan amount. Therefore, if you are preparing for emergencies, consider participating in an FD that offers generous interest rates.
