Monthly Interest for a ₹5 Lakh Fixed Deposit (FD)

Posted on Wednesday, November 27th, 2024 | By IndusInd Bank

Planning to invest ₹5 lakh in a fixed deposit? This is a smart move as investing in a fixed deposit offers a combination of safety, predictability, and stable returns. What makes FDs even more appealing is their ability to provide a regular monthly interest payout.  

But how much would you earn on a substantial amount like ₹5 lakh? It’s crucial to understand this because it helps you estimate your future income and plan your finances effectively.  

Let’s break down the potential monthly earnings from a ₹5 lakh FD and explore why choosing IndusInd Bank Fixed Deposits for this substantial investment could be a good decision. 

₹5 Lakh FD Interest per Month | Calculation Simplified

The easiest way to calculate the monthly interest for a ₹5 lakh fixed deposit is by using an FD calculator. This simple tool requires only three inputs, i.e., the principal amount, the interest rate, and the tenure. By entering these details, you can quickly determine how much you will earn each month. 

Let’s go through an example calculation, assuming the interest rate is 7.75% per annum: 

• Principal amount: ₹5,00,000 -H3 

• Interest rate: 7.75% per annum -H3 

• Tenure: 1 year -H3 

So, with an interest rate of 7.75% per annum, a ₹5 lakh FD interest per month would be about ₹3,324. 

Why Choose IndusInd Bank Fixed Deposits for Your Hard-Earned ₹5 Lakh?  

Here are some key benefits of choosing IndusInd Bank for your ₹5 lakh FD: 

High Interest Rates  

With IndusInd Bank Fixed Deposits, you earn the best-in-class interest rates. For a ₹5 lakh FD, even a slight increase in the interest rate can lead to a noticeable rise in the monthly payout, which means more funds to cover expenses or reinvest. This can be highly beneficial for retirees who depend on fixed deposit interest rate as a key source of income. 

A 100% Digital Process  

You can open a fixed deposit account from the convenience of your home or any location you prefer. The only documents you need are your PAN and Aadhaar, which makes the entire process quick and hassle-free. This digital convenience eliminates the need for multiple visits to the branch and saves you valuable time. 

Flexible Tenure Options  

Flexibility in tenure (7 days to 10 years) is a key advantage you get. Whether you prefer a short-term tenure for liquidity or a long-term tenure for growth, you can pick an FD tenure that perfectly matches your financial strategy. 

Easy Online Management  

The IndusMobile app and IndusNet banking provide 24/7 access to your FD accounts. You can monitor your investments, check interest earned, renew, or close your FD at your convenience and conduct other banking transactions efficiently. 

Additional Benefits for Senior Citizens

Senior citizens enjoy higher interest rates, typically an additional 0.50% above the regular rates. The higher rate is especially beneficial for elders relying on fixed income sources, as they get a more substantial income stream from their FDs.  

Option to Book a Tax-Saver FD  

Looking to earn higher returns and save taxes simultaneously? The IndusInd Bank Tax-Saver FD is an ideal option. By booking an FD for a tenure of five years, you can avail tax deductions under Section 80C of the Income Tax Act, 1961. The five-year tenure also helps you build a disciplined approach to savings and stick to your financial plan while enjoying tax benefits. 

Also Read: Tax Planning with Fixed Deposits: A Comprehensive Guide 

Ready to Invest Your ₹5 Lakh? Learn How to Book an FD in 4 Steps  

To book an FD online, the following steps work for both IndusInd and non-IndusInd bank customers: 

Now you will start earning interest as per the chosen terms. 

Key Takeaways

Investing ₹5 lakh in an FD with a monthly payout is a smart financial decision. You get a reliable and steady income stream, which is ideal for covering regular expenses or reinvesting in other opportunities. Furthermore, your original investment remains protected and unaffected. 

To earn an attractive interest rate on your hard-earned money, choose IndusInd Bank Fixed Deposits. You can select from various FD options, including a regular FD, tax-saver FD, and senior citizens FD. The flexibility extends to how you receive your interest, with options for monthly, quarterly, half-yearly, and annual payouts. The entire FD booking process is 100% digital, which means no bank visits or physical documentation is needed. Book NOW! 

Disclaimer: The information provided in this article is generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. Hence, you are advised to consult your financial advisor before making any financial decision. IndusInd Bank Limited (IBL) does not influence the views of the author in any way. IBL and the author shall not be responsible for any direct/indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information.