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Investing in FDs with a significant amount, like 5 lakhs, can help you secure a regular monthly income and achieve your financial objectives. Make sure to research the various options available, compare interest rates, and choose a trusted bank or financial institution to enjoy a stress-free investment journey.

Monthly Interest for 5 Lakhs in FD 2024

The following table lists the Monthly Interest for a 5 Lac Fixed Deposit for different banks:

Bank NameInterest RatesMonthly Interest for 5 Lakh
Central Bank of India 7.25%Rs. 3,021
City Union Bank 7.50%Rs. 3,125
Bank of Maharashtra 7.50%Rs. 3,125
Post Office 7.50%Rs. 3,125
Bank of India 7.50%Rs. 3,125
ICICI 7.60%Rs. 3,167
State Bank of India 7.60%Rs. 3,167
HDFC 7.75%Rs. 3,229
Punjab National Bank 7.75%Rs. 3,229
Indian Overseas Bank 7.75%Rs. 3,229
Bank of Baroda 7.75%Rs. 3,229
Axis Bank 7.85%Rs. 3,271
LIC 8.00%Rs. 3,333
RBL Bank 8.30%Rs. 3,458
AU Small Finance Bank 8.50%Rs. 3,542
Shriram Finance 8.68%Rs. 3,617
Fincare Small Finance 9.11%Rs. 3,796

What are the Documents Required for a ₹5 Lakh Fixed Deposit?

Individual depositors must submit the following documents for a ₹5 Lakhs fixed deposit:

  • Proof of Identity: Aadhaar card, driving licence, PAN card, voter’s ID, etc. 
  • Proof of Address: Utility bills, passport, registered rent agreement, bank passbook with photo, etc. 

Entities – like a Company or HUF must submit the following documents for a ₹5 Lakhs fixed deposit:

  • HUF deed
  • Certificate of registration
  • Articles and memorandum of association
  • Partnership deed

What is the Eligibility Criteria for a ₹5 Lakh Fixed Deposit?

The following are eligible for FD for a ₹5 Lakh fixed deposit:

  • Resident Indian above 18 years
  • Overseas Citizen of India or Person of Indian Origins
  • HUFs
  • Sole-proprietorship
  • Partnership firms
  • Family Trusts
  • Companies, associations, clubs and societies
  • NRIs 18 years or above

Frequently Asked Questions

How does investing 5 lakhs in FD generate monthly income?

You can opt for a monthly interest payout option to generate a monthly income from your FD. When you invest 5 lakhs in FD, you can choose to receive the interest earned per month, which can serve as a regular source of income.

Can you save on income tax by investing in Fixed Deposits?

Yes. Banks offer tax-saving fixed deposits with a 5-year tenure. These tax savings FDs qualify for income tax exemption under Section 80C of the Income Tax Act, 1961.

Do senior citizens have any benefit from investing in a 5 lakh FD?

Senior citizen depositors enjoy higher interest rates on FD. Also, they enjoy higher TDS deductions compared to regular citizens. Furthermore, senior citizens have the option to submit Form 15H if they do not possess a taxable income. This allows them to avail an exemption from TDS deductions.

What is the minimum and maximum tenure for investing in an FD account?

The minimum tenure for a Fixed Deposit is usually seven days, while the maximum tenure can extend up to 10 years.

Will there be a penalty for early withdrawal of an FD?

Yes, if you choose to close your Fixed Deposit account before its maturity, your bank or financial institution may charge a penalty. Typically, the penalty results in a lower interest payout, ranging from 0.5% to 1%.

What is interest on 5 lakh FD for 1 year?

The interest on 5 lakh FD for 1 year is INR 34,877 (compounded quarterly). The maturity value of the investment at the end of 1 year will be INR 5,34,877.

Fixed Deposit Interest Per Month