Fixed Deposit is a stable investment option and one of the most favored financial instruments in India. You can invest in Fixed Deposits in banks, post offices, and many NBFCs that offer a range of products under the umbrella category. Fixed Deposits represent a low-risk investment vehicle with assured returns aiding wealth creation and growth to meet your financial goals. You can invest in the scheme either through a lumpsum payment of less than or equal to Rs 5 lac.Read more
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Fixed Deposit is your lump-sum investment for a specific period to earn interest at a rate higher than idle funds in a savings account. The returns are guaranteed regardless of the changes in the interest rate.
By calculating monthly interest on 5 Lac Fixed Deposit, you can also look for different ways to maximize your returns.
Fixed Deposits are broadly classified as non-cumulative and cumulative, depending on how the accrued interest is deployed.
Monthly interest for 5 Lac non-cumulative FD is paid in a fixed frequency. On the other hand, the accrued monthly interest for 5 Lac cumulative FD is reinvested that helps earn extra interest.
The compounding effect helps your money grow till maturity letting you receive a hefty corpus. Banks offer a range of products within the ambit of this broad classification. Let us take a closer look.
Short Deposit: Fixed Deposits contracted for tenors starting from seven days to six months are termed short deposits.
Monthly/ Quarterly Income Deposit: They are Fixed Deposits of varying tenors from one year to ten years where you receive accrued interest payouts either monthly or quarterly. You receive the principal amount on maturity in the non-cumulative Fixed Deposit.
Double Benefit Deposit: The contracted tenor for the cumulative Fixed Deposit is one year to ten years, where you receive the principal plus the accumulated compounded interest as a maturity benefit.
Fixed deposit interest rates in banks, post offices, and NBFCs differ to an extent. Take a closer look to know their comparative rates.
|Fixed Deposit Interest Rates
|Interest Rates in %
|271 days< 1 year
|>1 year < 2 years
|>2 years< 3 years
|>3 years< 5 years
|5 years-10 years
|Legend: *For PO Monthly Income Scheme for Oct to December quarter 2021 #Effective from 16/12/2020 for deposits below Rs.2 Cr for non-senior citizens. Senior citizens 0.50% over the above card rates.
Note: In the above grid, the interest rates for banks are uniform across maturity buckets regardless of the Fixed Deposit class – non-cumulative or cumulative.
However, since banks compound interest quarterly, maturity buckets below three months are deprived of the compounding benefit. On the other hand, the POMIS interest rate is exclusive to the scheme.
|NBFC Interest Rates in Fixed Deposits
|Legend Tenor in months: Interest rates in % All interest rates for non-senior citizens. Senior citizens earn 0.25% higher than the above card rates.
|Source: Bajaj Finserv Effective from 12 May 2021
Note: Interest is compounded in the NBFC annually. Thereby interest rates described for each frequency are unique for the maturity brackets. However, the annual interest payout and the cumulative interest rate are the same, thereby bearing the annual interest compounding regimen.
Banks offer a flexible interest payment schedule to their customers in the non-cumulative Fixed Deposit class. Therefore, you can quantify the interest amount in banks for 5 Lac Fixed Deposit calculated at the stated rates.
|Interest amount in Banks for 5 Lac Fixed Deposit
|1 year 6 months
|3 years to 10 years
|Legend: Card rate in% Interest amount in INR
The Post Office Monthly Income Scheme locks your funds for 5 years, and the current interest rate is 6.6% per annum. Thus, you earn Rs 2,750 per month in interest and the total interest payout per year is Rs 33,000 for a 5 Lac Fixed Deposit.
It is not out of place to mention that the cumulative 5 Lac Fixed Deposit earns interest at 6.7% per annum with a maturity value of Rs 6,97,033. The total interest payout is Rs 1,97,033 compared to Rs 1,65,000 for the same tenor in the non-cumulative monthly interest payout 5 Lac Fixed Deposit.
|Interest amount in NBFC for 5 Lac Fixed Deposit
|Legend: Card rate in% Interest amount in INR
Investors look for monthly interest payout schemes to sustain their livelihood or supplement their income to meet various financial obligations. Retired individuals seek to invest their superannuation benefits in a lump sum to earn higher returns. Monthly interest for 5 Lac Fixed Deposits is ideal for their financial freedom without depending on their children. Learn more about your scheme from a professional before the final investment.
|FD Interest Rates
|SBI FD Interest Rates
|HDFC FD Interest Rates
|ICICI FD Interest Rates
|Axis Bank FD Interest Rates
|Canara FD Interest Rates
|Yes Bank FD Interest Rates
|Kotak Mahindra FD Interest Rates
|Bandhan Bank FD Interest Rates
|Union Bank of India FD Interest Rates
|Indusind Bank FD Interest Rates
|PNB FD Interest Rates
|Bank of Baroda FD Interest Rates
|IDFC Bank FD Interest Rates
|Indian Bank FD Interest Rates
|RBL Bank FD Interest Rates
|UCO Bank FD Interest Rates
|Karnatka Bank FD Interest Rates
|Bank of India FD Interest Rates
|IDBI Bank FD Interest Rates
|Central Bank of India FD Interest Rates
|Bank of Maharashtra FD Interest Rates
|Citi Bank FD Interest Rates
|Allahabad Bank FD Interest Rates
|Indian Overseas Bank FD Interest Rates
|Andhra Bank FD Interest Rates
|Corporation Bank FD Interest Rates
|DBS Bank FD Interest Rates
|Syndicate Bank FD Interest Rates
|Dena Bank FD Interest Rates
|Vijaya Bank FD Interest Rates
|State Bank of Travancore FD Interest Rates
|State Bank of Mysore FD Interest Rates
|State Bank of Hyderabad FD Interest Rates
*All savings are provided by the insurer as per the IRDAI approved
insurance plan. Standard T&C Apply
+ Trad plans with a premium above 5 lakhs would be taxed as per applicable tax slabs post 31st march 2023
#Discount offered by insurance company
~Source - Google Review Rating available on:- http://bit.ly/3J20bXZ
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