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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:
| Monthly Interest for 5 Lakh | Bank Name | Interest Rates |
| Rs. 3,021 | Central Bank of India | 7.25% |
| Rs. 3,125 | 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. 3,167 | ICICI | 7.60% |
| Rs. 3,167 | State Bank of India | 7.60% |
| Rs. 3,229 | 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. 3,271 | Axis Bank | 7.85% |
| Rs. 3,333 | LIC | 8.00% |
| Rs. 3,458 | RBL Bank | 8.30% |
| Rs. 3,542 | AU Small Finance Bank | 8.50% |
| Rs. 3,617 | Shriram Finance | 8.68% |
| Rs. 3,796 | Fincare Small Finance | 9.11% |
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
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.
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.
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.
The minimum tenure for a Fixed Deposit is usually seven days, while the maximum tenure can extend up to 10 years.
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%.
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.
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