Monthly FD Interest on ₹1 Crore

What is Monthly FD Interest?

Monthly interest on FD stands for the interest earned on a Fixed Deposit (FD) account every month. When you put money in an FD scheme, the bank pays you interest regularly, typically on a monthly basis. This interest is calculated based on the amount you deposit and the FD interest rates offered by the bank. It is a simple way to earn a little extra income from your savings each month.

Monthly Interest on ₹1 Crore FD in Different Banks

The monthly interest earned on a ₹1 crore Fixed Deposit (FD) varies based on the bank and its offered rates. Here’s a general overview of the potential earnings across different banks, based on their prevailing FD interest rates across different tenures:

*Disclaimer: The FD interest rates mentioned above are effective as of July 2026 and are subject to revision at the discretion of the issuing bank or financial institution at any time.

Monthly Interest for ₹1 Crore in FD for Different Interest Rates

The monthly interest you can earn on a ₹1 crore Fixed Deposit (FD) largely depends on the interest rate offered by the bank. To give you a clearer picture, let’s assume you have a 5-year FD of ₹1 crore with the State Bank of India (SBI). Based on SBI’s prevailing interest rates, here’s how your monthly payouts could look:

Note: This is an approximate monthly equivalent.

Benefits of Investing in an FD

Fixed deposits (FDs) are a popular investment option in India, especially for risk-averse investors. Here are some of the key benefits of investing in FDs:

• Assured Returns: Unlike stocks or mutual funds, FDs offer a fixed rate of interest that is predetermined at the time of investment. This provides stability and predictability to your investment.
• Safety and Security: FDs are considered a safe investment option. Deposits up to ₹5 lakh (including principal and accrued interest) per depositor per bank are insured by the Deposit Insurance and Credit Guarantee Corporation (DICGC).
• Flexible Tenure: FDs offer tenures ranging from 7 days to 10 years. This allows you to choose an investment period that aligns with your financial goals.
• Liquidity: While FDs offer fixed tenure, some options provide liquidity. You can typically withdraw your money before maturity by paying a penalty. This can be helpful in case of emergencies.
• Higher Interest Rates than Savings Accounts: FDs typically offer higher interest rates than regular savings accounts. This allows you to grow your money at a faster pace.
• Loan Facility: Many banks allow you to take a loan against your FD. This can be a convenient way to access funds without having to break your deposit.
• Tax Benefits: You can claim a deduction of up to ₹1.5 lakh per financial year on the amount you invest in a Tax Saving FD under Section 123 of the Income-tax Act, 2025 (earlier Section 80C), provided the taxpayer has opted for the old tax regime and satisfies the prescribed conditions.
• Taxation of FD Interest: The interest earned on any Fixed Deposit, including Tax-Saving FDs, is treated as income from other sources and is fully taxable. Banks also deduct Tax Deducted at Source (TDS) if the annual interest exceeds ₹50,000 for general citizens and ₹1,00,000 for senior citizens.

Using FD Calculator to Estimate the Returns

An FD calculator, also known as a Fixed Deposit calculator, is an online financial tool that helps estimate the maturity value of your fixed deposit investment. It calculates the total amount you are likely to receive at the end of the chosen tenure based on the deposit amount, interest rate, tenure, and interest payout option.

The maturity amount includes both the principal invested and the interest earned during the deposit period. Instead of performing manual calculations, an FD calculator provides quick and accurate estimates, making it easier to compare different FD interest rates, evaluate investment options, and plan your finances with confidence.

TDS for Fixed Deposit Interest on ₹1 Crore

TDS (Tax Deducted at Source) on a ₹1 crore fixed deposit depends on the institution, total interest earned during the financial year, your age, and whether you have furnished your PAN. For bank fixed deposits, TDS is deducted at 10% if the total FD interest credited or paid during a financial year exceeds ₹50,000 for non-senior citizens or ₹1,00,000 for senior citizens. 

If PAN is not furnished, TDS may be deducted at 20% or the applicable higher rate. For NBFC FDs, 10% TDS applies on interest exceeding ₹5,000. Final tax liability depends on your income tax slab.

Key Takeaways

Investing in a monthly fixed deposit with a principal amount of ₹1 crore can yield significant interest returns, providing a steady source of interest income. Comparing FD rates, payout options and tenure can help investors choose a suitable deposit based on their financial requirements.