50 Lakh Fixed Deposit Interest Per Month 

A ₹50 lakh fixed deposit (FD) helps investors earn a high monthly interest payout. However, the amount of interest payout varies based on the bank, NBFC, their offered interest rate and the tenure of the FD booked. One must also note that the FD rates fluctuate based on the repo rate of the Reserve Bank of India. An increase in the repo rate results in an increase in the FD interest rates offered by banks and NBFCs. 

Monthly Interest on a ₹50 Lakh Fixed Deposit

The following are the interest rates and monthly interest payouts on a ₹50 lakh fixed deposit for 5 years:

Monthly Interest on a ₹50 Lakh Fixed Deposit Offered by Banks and NBFCs

Here are the interest rates offered by various banks and NBFCs to senior and non-senior citizens on an FD of ₹50 lakh for a 5-year tenure:

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Monthly Interest Payout on a ₹50 Lakh Fixed Deposit 

Here is the monthly interest payout on a fixed deposit of ₹50 lakh booked for a tenure of 5 years at the rate of 8.20%:

Principal: ₹50,00,000

Interest Rate: 8.20%

Monthly Interest Earned (interest payable monthly): ₹34,166

Total Amount Received on Maturity after 5 Years: Principal + Interest = ₹50,00,000 + ₹20,50,000 = ₹70,50,000

TDS on a ₹50 Lakh Fixed Deposit

Interest income on fixed deposits attracts TDS (Tax Deducted at Source) at the rate of 10% if PAN card details are submitted. However, if PAN card details are not submitted, it attracts a 20% TDS. Here are the conditions when TDS applies to interest income:

• If the total annual interest from FD exceeds ₹40,000 for non-senior citizens, TDS will apply. To avoid TDS deduction, depositors need to submit Form 15G to the bank or the NBFC at the beginning of the financial year.
• For senior citizens, TDS is applicable if the total interest earned in a year exceeds ₹50,000. To prevent TDS deduction, you need to submit Form 15H to your preferred bank or NBFC.

Penalty for Withdrawing a ₹50 Lakh Fixed Deposit Before Maturity

Banks charge a penalty of 1% on the interest rate for premature withdrawal of fixed deposits. On the other hand, NBFCs might charge premature withdrawal fees on the interest amount. For instance, if you book an FD of ₹50,00,000 for 3 years at the rate of 8.20% and liquidate the FD after 1 year for premature withdrawal, the effective interest rate for 1 year will apply along with the penalty. 

Consider the table below as an illustration:

A ₹50 lakh fixed deposit can help depositors earn a hefty interest payout based on the interest rate and the tenure of FD booking. However, premature withdrawal of FD results in a loss of interest and a penalty of 1% applies. To avoid penalties for premature withdrawal, choose a tenure that best suits your goal. Choosing a bank or NBFC offering the highest interest rate for a given tenure can help maximise your interest income.

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