5 Lakh FD Monthly Interest Per Month

Updated on 24 May, 2024

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

Monthly Interest for 5 Lakh	Bank Name	Interest 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.