Clickable arrow icon In this article
3 Mins

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 5 lakh FD interest per month for different banks over a tenor of 5 years for general public:

Monthly Interest for 5 LakhBank NameInterest Rates
Rs. 2,417 Bank of Maharashtra 5.80%
Rs. 2,604 City Union Bank 6.25%
Rs. 2,604 Central Bank of India 6.25%
Rs. 2,708 State Bank of India 6.50%
Rs. 2,708 Punjab National Bank 6.50%
Rs. 2,708 Indian Overseas Bank 6.50%
Rs. 2,708 Bank of Baroda 6.50%
Rs. 2,708 Bank of India 6.50%
Rs. 2,917 Axis Bank 7.00%
Rs. 2,958 RBL Bank 7.10%
Rs. 3,021 AU Small Finance Bank 7.25%
Rs. 3,021 Fincare Small Finance 7.25%
Rs. 3,083 HDFC 7.40%
Rs. 3,125 Post Office 7.50%
Rs. 3,167 ICICI 7.60%
Rs. 3,229 LIC 7.75%
Rs. 3,529 Shriram Finance 8.47%

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