Monthly Interest for 5 Lakh Fixed Deposit

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
Maximum returns Offered by Guaranteed

6.5%**

Fixed Deposits

(by SBI bank)

(5-10 Years)

7.1%***

Public Provident Fund

(other popular options)

(15 Years)

Get Guaranteed returns up to 7.1%*
Fully Tax-Free* (unlike FD), Life Cover Included
+91
Secure
We don’t spam
View Plans
Please wait. We Are Processing..
Your personal information is secure with us
Plans available only for people of Indian origin By clicking on "View Plans" you agree to our Privacy Policy and Terms of use #For a 55 year on investment of 20Lacs Tax benefit is subject to changes in tax laws
Get Updates on WhatsApp
We are rated++
rating
10.5 Crore
Registered Consumer
51
Insurance Partners
5.3 Crore
Policies Sold

What is Monthly Interest for a 5 Lac Fixed Deposit?

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.

Information About
Fixed Deposits, Guaranteed Return Plans & Debt Mutual Fund
Guaranteed Return Plans, Fixed Deposits &
Debt Mutual Fund
Guaranteed Return Plans
Returns Before Tax
7.1% (TAX-FREE)
Returns After Tax
7.1%
Guaranteed Returns
Yes
Life Cover
Yes
Tax on Profit
Tax Free*
Risk
No Risk
Fixed Deposits
Returns Before Tax
7% (TAXABLE)
Returns After Tax
4.8%
Guaranteed Returns
Yes
Life Cover
No
Tax on Profit
Taxable
Risk
Low Risk
Debt Mutual Fund
Returns Before Tax
8% (TAXABLE)
Returns After Tax
5.5%
Guaranteed Returns
No
Life Cover
No
Tax on Profit
Taxable
Risk
High Risk
VIEW PLANS
*For annual premium upto ₹5 Lacs

Classification Impacting Monthly Interest for 5 Lac Fixed Deposit

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. 

Interest Rates for 5 Lac Fixed Deposit

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
Tenors Interest Rates in %
Bank Post Office
7-45 days 2.80
45-180 days 3.70
181-270 days  4.30
271 days< 1 year 4.40
1 year  4.90
>1 year < 2 years 5.00
>2 years< 3 years 5.10
>3 years< 5 years 5.25
5 years 5.25 6.6*
5 years-10 years  5.25
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. 
Source:
  1. Bank of Baroda
  2. IndiaPost

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. 

fd return beater

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
Tenor Cumulative Non-cumulative
Maturity Monthly Quarterly Half-yearly Annual
12-23 5.65 5.51 5.53 5.57 5.65
24-35 6.10 5.94 5.97 6.01 6.10
36 6.50 6.31 6.35 6.40 6.50
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. 

Monthly Interest for 5 Lac Fixed Deposit in Banks

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  
Tenors Card Rate Monthly Interest Quarterly Interest
1 year 4.90 2033.33 6126.00
1 year 6 months 5.00 2074.65 6250.00
2 years 5.10 2115.97 6.375.00
3 years to 10 years 5.25 2177.93 6562.50
Legend: Card rate in% Interest amount in INR

Monthly Interest for 5 Lac Fixed Deposit in Post Offices

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. 

FD interest rates India have fallen consistently over the last 12 years.
Invest in Plans that offer Guaranteed Returns for over 25 Years

Monthly Interest for 5 Lac Fixed Deposit in NBFC

Interest amount in NBFC for 5 Lac Fixed Deposit  
Tenors Monthly Payout  Quarterly Payout 
Card Rate Interest Amount  Card Rate Interest Amount 
12-23 months 5.51 2285.29 5.53 6912.50
24-35 months 5.94 2462.75 5.97 7462.50
36 months 6.31 3615.34 6.35 7937.50
Legend: Card rate in% Interest amount in INR

In Conclusion

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.

Allahabad Bank FD Rates

Allahabad Bank FD Rates

Andhara Bank FD Rates

Andhara Bank FD Rates

Assam Gramin Vikash Bank FD Rates

Assam Gramin Vikash Bank FD Rates

AU Small Finance Bank FD Rates

AU Small Finance Bank FD Rates

Axis Bank FD Rates

Axis Bank FD Rates

Bajaj Finance FD Rates

Bajaj Finance FD Rates

Bandhan Bank FD Rates

Bandhan Bank FD Rates

Bangiya Gramin Vikash Bank FD Rates

Bangiya Gramin Vikash Bank FD Rates

Bank of Baroda FD Rates

Bank of Baroda FD Rates

Bank of Ceylon FD Rates

Bank of Ceylon FD Rates

Bank of Maharashtra FD Rates

Bank of Maharashtra FD Rates

Baroda Gujarat Gramin Bank FD Interest Rates

Baroda Gujarat Gramin Bank FD Interest Rates

BOI FD Interest Rates

BOI FD Interest Rates

Canara Bank FD Rates

Canara Bank FD Rates

Capital Small Finance Bank FD Rates

Capital Small Finance Bank FD Rates

Central Bank of India FD Rates

Central Bank of India FD Rates

Citi Bank FD Rates

Citi Bank FD Rates

City Union Bank FD Rates

City Union Bank FD Rates

Corporation Bank FD Rates

Corporation Bank FD Rates

Dakshin Bihar Gramin Bank FD Rates

Dakshin Bihar Gramin Bank FD Rates

DBS Bank FD Rates

DBS Bank FD Rates

Dena Bank FD Rates

Dena Bank FD Rates

Dhanlaxmi Bank FD Rates

Dhanlaxmi Bank FD Rates

Equitas Bank FD Rates

Equitas Bank FD Rates

ESAF Small Finance Bank FD Rates

ESAF Small Finance Bank FD Rates

HDFC FD Interest Rates

HDFC FD Interest Rates

HSBC FD Rates

HSBC FD Rates

ICICI Bank FD Rates

ICICI Bank FD Rates

IDBI Bank FD Rates

IDBI Bank FD Rates

IDFC Bank FD Rates

IDFC Bank FD Rates

Indian Bank FD Rates

Indian Bank FD Rates

Indian Overseas Bank FD Rates

Indian Overseas Bank FD Rates

IndusInd Bank FD Rates

IndusInd Bank FD Rates

Jana Small Finance Bank FD Rates

Jana Small Finance Bank FD Rates

Karnataka Bank FD Rates

Karnataka Bank FD Rates

Kerala Bank FD Interest Rates

Kerala Bank FD Interest Rates

Kotak FD Rates

Kotak FD Rates

Lakshmi Vilas Bank FD Rates

Lakshmi Vilas Bank FD Rates

Muthoot Capital FD Rates

Muthoot Capital FD Rates

Nainital Bank FD Rates

Nainital Bank FD Rates

Odisha Gramya Bank FD Rates

Odisha Gramya Bank FD Rates

Paschim Banga Bank FD Rates

Paschim Banga Bank FD Rates

Paytm FD Rates

Paytm FD Rates

PNB FD Interest Rates

PNB FD Interest Rates

Prathama UP Gramin Bank FD Rates

Prathama UP Gramin Bank FD Rates

RBL Bank FD Rates

RBL Bank FD Rates

Saurashtra Gramin Bank FD Interest Rates

Saurashtra Gramin Bank FD Interest Rates

SBI FD Interest Rates

SBI FD Interest Rates

Shriram Finance FD Rates

Shriram Finance FD Rates

State Bank of Hyderabad FD Rates

State Bank of Hyderabad FD Rates

State Bank of Mysore FD Rates

State Bank of Mysore FD Rates

State Bank of Travancore FD Rates

State Bank of Travancore FD Rates

Syndicate Bank FD Rates

Syndicate Bank FD Rates

Tamil Nadu Grama Bank FD Interest Rates

Tamil Nadu Grama Bank FD Interest Rates

Telangana Grameena Bank FD Rates

Telangana Grameena Bank FD Rates

Tripura Gramin Bank FD Interest Rates

Tripura Gramin Bank FD Interest Rates

UCO Bank FD Rates

UCO Bank FD Rates

ujjivan small finance bank fd rates

ujjivan small finance bank fd rates

Union Bank FD Rates

Union Bank FD Rates

Uttar Bihar Gramin Bank FD Rates

Uttar Bihar Gramin Bank FD Rates

Uttarakhand Gramin Bank FD Interest Rates

Uttarakhand Gramin Bank FD Interest Rates

Vijaya Bank FD Rates

Vijaya Bank FD Rates

Yes Bank FD Rates

Yes Bank FD Rates

Expand

FAQs

  • Is the monthly interest for 4 Lac Fixed Deposits taxable?

    Your interest income from Fixed Deposits is liable to taxation if the amount exceeds Rs 40,000 annually. The senior citizen’s limit is Rs50, 000.
  • What is the TDS rate applied in banks for interest on Fixed Deposits?

    Banks apply TDS at 10% of the accrued interest when disbursed if you have submitted your PAN card for records. Otherwise, you pay 20% of the accrued interest as TDS. 
  • Can you save on income tax by investing in Fixed Deposits?

    Yes, every bank offers a tax saving Fixed Deposits which allows you tax deduction up to Rs.1.5 Lac in a financial year. However, the investment is locked for five years. (*Tax benefit is subject to changes in tax laws.)
  • When should you submit the 15G or 15H Form for exemption from TDS?

    You must submit the 15G or the 15H Form for TDS exemption at the beginning of the financial year if your gross income is below the income tax amount threshold. (*Tax benefit is subject to changes in tax laws.)

*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 ˜Top 5 plans based on annualized premium, for bookings made in the first 6 months of FY 24-25. Policybazaar does not endorse, rate or recommend any particular insurer or insurance product offered by any insurer. This list of plans listed here comprise of insurance products offered by all the insurance partners of Policybazaar. For a complete list of insurers in India refer to the Insurance Regulatory and Development Authority of India website, www.irdai.gov.in

FD Calculator

Total Investment

₹500 ₹30L
Enter Total Investment

Rate of Interest (Yearly)

1% 15%
Rate of Interest (Yearly)

Time Period

1 Year 15 Years
Enter Time Period
Interest Earned
Maturity Amount

FD Rates articles

Recent Articles
Popular Articles
ICICI Bank FD Premature Withdrawal

07 Jul 2025

ICICI Bank FD premature withdrawal is allowed in case of a
Read more
AU Small Finance Bank Credit Card Against FD

01 Jul 2025

AU Small Finance Bank credit card against FD offers a credit
Read more
DCB Bank Credit Card Against FD

01 Jul 2025

DCB Bank credit card against FD offers a credit limit of up to
Read more
Karur Vysya Bank Credit Card Against FD

01 Jul 2025

Karur Vysya Bank credit card against FD requires a minimum fixed
Read more
Kotak Mahindra Bank Credit Card Against FD

01 Jul 2025

Kotak Mahindra Bank credit card against FD offers a credit limit
Read more
Best Savings Bank Accounts in India in 2025
  • 07 May 2025
  • 5053
Choosing the right savings bank account is important for managing your finances efficiently. In 2025, several
Read more
SBI Fixed Deposit Monthly Income Scheme
  • 04 Apr 2022
  • 44091
The SBI Fixed Deposit Monthly Income Scheme, commonly called the SBI Annuity Deposit Scheme, is a specialised
Read more
Application for Withdrawal of Fixed Deposit
  • 03 Dec 2021
  • 76002
An Application for Withdrawal of Fixed Deposit is a formal request to withdraw the Fixed Deposit (FD) amount from
Read more
SBI Credit Card on FD - Eligibility and Benefits
  • 20 May 2025
  • 5213
Using an SBI credit card against an FD is an intelligent and safe way of enjoying credit-card benefits for
Read more
SBI Fixed Deposit Double Scheme
  • 18 Feb 2022
  • 28949
The SBI Fixed Deposit Double Scheme is primarily an investment scheme offered by the State Bank of India that
Read more

top
Close
Download the Policybazaar app
to manage all your insurance needs.
INSTALL