₹5 Lakh Fixed Deposit Interest Per Month

Investing in a ₹5 lakh fixed deposit (FD) is a great way to secure regular monthly interest. It offers a steady income while keeping your principal safe. With competitive interest rates, FD investments provide a risk-free option to grow wealth.

The FD interest is calculated monthly, quarterly or annually. To save time, you can also use an FD calculator to calculate the maturity amount easily. For instance, if you invest ₹5,00,000 at 6.5% p.a. For 5 years, the estimated monthly returns will be ₹2,708 and the total value will be ₹6,62,500. 

Monthly Interest Payout for ₹5 Lakh Fixed Deposit 

The following table illustrates the ₹5 lakh fixed deposit interest rates per month over a 5-year tenure:

Monthly Interest for ₹5 Lakh Fixed Deposits Offered by Major Banks & NBFCs 2025

The table below provides current interest rates and monthly interest income from ₹5 lakh FD across popular banks and NBFCs:

Note: The rates may vary and may change at the discretion of a bank or any concerned financial institution. 

TDS on a ₹5 Lakh Fixed Deposit 

Here is a table outlining the Tax Deducted at Source (TDS) on FD of ₹5 lakh:

Penalty for Withdrawing a ₹5 Lakh Fixed Deposit Before Maturity 

If you withdraw your ₹5 lakh FD before maturity, you may have to incur a penalty and yield lower returns. For instance, if you invested the amount at 7.5% p.a. but withdraw after 1 year, the applicable interest rate will be 6.5%. However, after incurring a 1% penalty for premature withdrawal, the final interest rate will be 5.5% p.a., resulting in lower returns. 

Important Things to Consider Before Investing ₹5 Lakh in a Fixed Deposit 

Here are a few things that you must consider before you invest in a ₹5 lakh fixed deposit: 

1. Interest Rates: If you are looking for a regular income on monthly, quarterly or annually, you can select non-cumulative schemes. If you are looking for long-term returns, you can opt for cumulative schemes. However, it is important to remember that the interest rates are subject to change at the company’s discretion. 
2. Premature Withdrawal Penalty: Before you invest a lump sum amount, check the premature withdrawal penalties of your bank. It may so happen that you need to withdraw during an emergency. Thus, it is always advisable to have prior information. 
3. Nomination: If you are the sole depositor, ensure that you use the nomination option in a fixed deposit. In case of any unfortunate event, your nominee will be eligible to claim the amount along with interest. 

A fixed deposit of ₹5 lakh can provide a reliable monthly income with competitive interest rates. Use an online FD calculator or consult your bank for precise estimates based on current rates and tenures to understand the tax implications and applicable withdrawal penalties to your FD.

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