Fixed Deposit Interest: How Much Will I Get Per Month from 10 Crores?

The Monthly Interest You Can Earn from a Fixed Deposit (FD) Depends on the Interest Rate Offered by the Bank. In India, the typical interest rate for an FD ranges between 5 to 7 per annum. Let's delve into the calculations and understand how much you can potentially earn per month from a 10 crore FD.

Calculation

Convert the Annual Interest Rate to a Monthly Rate

For a 5 annual interest rate:

Monthly Interest Rate 5/12 0.4167

For a 7 annual interest rate:

Monthly Interest Rate 7/12 0.5833

Calculate the Monthly Interest for 10 Crores (100,000,000 INR)

For 5%:

Monthly Interest 100,000,000 * 0.004167 41,667 INR

For 7%:

Monthly Interest 100,000,000 * 0.005833 58,333 INR

Summary

At 5% per annum, you'll earn approximately 41,667 INR per month.

At 7% per annum, you'll earn approximately 58,333 INR per month.

It's important to check with your bank for the specific interest rate they offer on fixed deposits to get an accurate amount.

Considerations for 3 Crores in an FD

If you're thinking about parking 3 crores (30,000,000 INR) in a fixed deposit with a bank, it's crucial to understand the returns you can anticipate. The interest payout from an FD is akin to the reliable churning of lassi – steady, predictable, and smooth.

Interest Rate

While the interest rate on FDs varies across banks and tenure, in India, a typical interest rate for a regular fixed deposit is around 6% per annum. For senior citizens, the rate is usually slightly higher.

Interest Payout Frequency

Banks usually offer various interest payout options – monthly, quarterly, half-yearly, or annually. For this scenario, we consider a monthly interest payout.

Calculation

Interest per month Principal x Annual Interest Rate / 12 months

Interest per month 30,000,000 INR x 6/100 / 12 15,000 INR per month

Therefore, for a fixed deposit of 3 crores at an assumed interest rate of 6% per annum, you can expect to earn around 15,000 INR per month in interest.

Additional Considerations

It's crucial to remember a couple of things:

First, the actual interest might be a bit less due to the compounding effect if you choose reinvestment. Secondly, the interest earned from FDs is subject to Tax Deduction at Source (TDS) and is taxable according to your income tax slab.

While FDs offer safety and predictability, they may not always provide the best post-tax returns. If wealth growth is your primary aim, it might be worth diversifying and considering other financial instruments. As someone who advocates the Roots and Wings philosophy, I encourage a blend of stability and growth. Some exposure to equities in your investment portfolio can enhance your returns.

Financial Advice

A SEBI Registered Investment Advisor can guide you in crafting a strategy tailored to your financial aspirations. If you're seeking a trusted advisor, Jama Wealth's services might be a suitable avenue to explore.