Rs. 1 Crore Fixed Deposit (FD) Interest Per Month 2024

Are you also curious to know how much FD monthly interest you can generate on the fixed deposit of Rs. 1 Crore? Then, this article is specially made for you. On 1 cr fd, the interest can range between 3-7% depending on the tenure. In most cases, the longer the term, the higher your returns because of the incremental holding period risk. Moreover, if you are a senior citizen, you will be offered an interest rate higher by 0.50-0.75% than a regular FD.

Also Read: Experience financial growth with unmatched Bajaj Finance FD Rates

In this article, you’ll know in detail about the FD interest rate and interest amount you can earn of 1 cr fd in different banks like SBI & HDFC, NBFCs and in the post office.

Points to Know Before Determining the FD Interest on 1 Crore

To calculate the monthly interest on Rs. 1 crore deposits, you must determine the annual interest on your deposit. Now, divide this interest by 12 to get the monthly interest. However, before you do that, here are some points that you need to keep in mind:

• The senior citizen interest rate is higher. So, if your age is 60 or more or if you open a fixed deposit account in the name of a senior citizen, you will be entitled to a relatively higher rate.
• The interest rate depends on the deposit tenure. In most cases for longer tenures, the interest rate is higher.
• Some financial institutions compound the interest quarterly. In such cases, the interest income would increase. So, check the compounding frequency when calculating the Rs.1 crore FD interest per month.
• Different financial institutions have different rates of interest. So, the interest income will also be dependent on your choice of financial institution at which you would like to park your FD.

1 Crore FD Interest Per Month in 2024

Now, let’s check the Rs.1 crore FD interest per month for a non-senior citizen, using some sample interest rates:

Monthly Interest Rate on 1 CR for Senior Citizens

If you are a senior citizen, your FD interest rate will increase by an additional 0.5%. In that case, the monthly interest would be as follows:

Rs 1 Crore FD Interest Per Month Offered by Indian Banks in 2024

Monthly FD Interest on 1 CR by NBFCs in 2024

Alternate Method For Calculating Monthly Interest on Rs.1 Cr FD

The interest can be calculated by subtracting the deposited amount from the maturity amount. The following methodology is apt for cumulative FDs.:

A = P (1 + R/N) (T^N)

Here,

A – Maturity amount

P – Deposited amount

R – Interest rate

N – Compounding frequency

T – Deposit term

For example, if you deposit Rs.1 crore for one year at 6% interest compounded quarterly, the amount would be calculated as follows:

A = 1,00,00,000 * (1 + 0.06/4) ^ (1 ^ 4)

= Rs.1,06,13,635.50

You get the annual interest income by deducting the maturity amount from the deposited amount.

So, annual interest = Rs.Rs.1,06,13,635.50 – Rs.1,00,00,000

= Rs.6,13,636

The monthly interest would be Rs.6,13,636/12 = Rs.51,136

Also Read: Inflation Affect Your Retirement Planning

Eligibility Criteria for Rs. 1 CR FD 

The following categories of investors are eligible for the Rs.1 crore FD scheme:

• Resident Indians or NRIs 18 years or above.
• Overseas Citizens of India (OCIs) or Persons of Indian Origin (PIOs).
• HUFs (Hindu Undivided Families).
• Sole-proprietorship businesses
• Partnership firms
• Family trusts
• Companies, associations, clubs, and societies.

Documents Required for FD Scheme

To open a fixed deposit account for Rs.1 crore, the following documents would be required:

• A duly-filled account opening application form
• A valid ID proof like:
  • Aadhaar card
  • PAN card
  • Voter’s ID card
  • Passport
  • Driving licence
  • Government-issued identity card
  • Photo ration card
  • Any other document issued by a recognised authority carrying your photograph
• Valid address proof like:
  • Aadhaar card
  • Passport
  • Voter’s ID card
  • Driving licence
  • Utility bills like the phone bill, gas bill, etc.
  • Rent agreement
  • Property deed, etc.

Also Read: Tax Saving FD Interest Rates 2024

Types of Fixed Deposits in India

India offers a multitude of Fixed Deposit types, which are as follows:
Regular FDs, Cumulative FDs, Tax-Saver FDs, Senior Citizen FDs, Non-cumulative FDs, Floating FDs, Recurring FDs, Sweep-in FDs, and Corporate FDs.

Final Thoughts

Rs.1 crore fixed deposit can create a regular stream of monthly inflows through its interest income. Since the deposit is considerable, the monthly interest income would also be high. So, knowing how to calculate the Rs.1 crore FD interest per month is crucial. For ease of computing, you can use the online fixed deposit calculators. Depending on your needs, you can choose to accumulate the interest over the deposit tenure or withdraw it periodically. Choose a higher tenure FD scheme for better returns.

FAQs