1 Crore Fixed Deposit Monthly Interest in 2024

Investing ₹1 crore in a fixed deposit (FD) can secure a steady monthly income, making it an attractive option for those seeking a low-risk financial plan. However, the monthly interest varies across banks, and tax implications should be considered to maximize returns. Here’s everything you need to know about earning monthly interest on a ₹1 crore FD in 2024.

Monthly Interest for ₹1 Crore FD Across Banks

The interest earned depends on the bank, tenure, and applicable rates. Here’s a comparison of the monthly interest offered by popular banks for a ₹1 crore FD over a 5-year tenure:

Bank Name	Interest Rate	Monthly Interest (₹)
Bank of Maharashtra	5.80%	₹48,333
City Union Bank	6.25%	₹52,083
Central Bank of India	6.25%	₹52,083
State Bank of India (SBI)	6.50%	₹54,167
Punjab National Bank	6.50%	₹54,167
Indian Overseas Bank	6.50%	₹54,167
Axis Bank	7.00%	₹58,333
RBL Bank	7.10%	₹59,167
HDFC Bank	7.40%	₹61,667
ICICI Bank	7.60%	₹63,333

Tax Deducted at Source (TDS) on ₹1 Crore FD

• Taxation of Interest: The interest earned on an FD is added to the investor’s total taxable income and taxed as per their income tax slab.

• TDS Applicability:

  • Banks deduct 10% TDS on interest income exceeding ₹40,000 annually (₹50,000 for senior citizens).

  • If the investor fails to submit a valid PAN, TDS is deducted at 20%.

  • For NBFCs, TDS is deducted at 10% for interest income exceeding ₹5,000.

Documents Required for Opening a ₹1 Crore FD

1. Identity Proof: Aadhaar, Passport, Voter ID, or Driving License.

2. Address Proof: Utility bills, Aadhaar card, or bank statements.

3. PAN Card: Essential for tax compliance.

4. Form 15H/15G: For senior citizens and individuals eligible for exemption from TDS.

5. Senior Citizen Proof: Age verification for availing higher interest rates.

Benefits of a ₹1 Crore FD

1. Steady Income: Ensures regular payouts, making it ideal for retirees or those seeking predictable returns.

2. Safety: Backed by reputed banks, FDs are a secure investment with minimal risk.

3. Loan Facility: Avoid breaking the FD prematurely by taking a loan (up to 90% of the FD amount).

4. Customizable Tenures: Choose a tenure that aligns with your financial goals.

Tips to Maximize Returns

1. Compare Rates: Different banks offer varying interest rates, so research thoroughly.

2. Submit PAN: Avoid higher TDS deductions by providing a valid PAN.

3. Consider Tax-Saving FDs: If eligible, invest in tax-saving FDs for additional benefits.

4. Plan Withdrawals: Avoid premature withdrawals to maximize returns.

Investing ₹1 crore in an FD can be a cornerstone of financial stability. By selecting the right bank and understanding the tax implications, you can enjoy consistent and reliable monthly income tailored to your needs.