• 10 Lakh FD Interest Per Month

    Fixed deposit (FD) is a financial product which you can avail to maximise your savings so that you can meet your future financial needs. One of the ways through which you can better utilise fixed deposit is opting for the monthly interest for a fixed deposit of Rs.10 lakh as you can enjoy higher returns. Investing in this option means you will receive a regular stream of income rather than witnessing long-term money growth which will allow you to meet your immediate financial needs.

    Reasons to opt for monthly interest for an FD of Rs.10 lakh

    Some of the reasons why opting for monthly interest for an FD of Rs.10 lakh can be a feasible option are given below:

    • Returns are high: Compared to other saving instruments, the returns you will get on investing in a fixed deposit will be higher.
    • Flexible tenure: Based on your requirement, you can choose a tenure ranging between seven days and ten years based on which you will receive applicable interest on your deposits.
    • Preferential rates: The option of monthly interest for an FD of Rs.10 lakh is suitable for senior citizens or retired individuals as they will most likely earn an extra 0.50% interest on their deposits.
    • Returns are guaranteed: Fixed deposits are low risk financial tools. Also, investing in a fixed deposit will ensure returns regardless of any changes in the interest rates.

    Fixed deposit interest rates comparison between a bank, NBFC, and post office

    Given below is the difference between the rate of interest for fixed deposit for a bank, NBFC, and post office

    Maturity Tenors Interest Rates (%)
    Bank Post Office NBFC
    Between 7 days and 29 days 2.50 -- --
    Between 30 and 90 days 3.00 -- --
    Between 91 days and 6 months 3.50 -- --
    Between 6 months 1 day and 9 months 4.40 -- --
    Between 9 months 1 day and 1 year 4.40 -- --
    1 year 5.00 5.5 --
    Between 1 year 1 day and 2 years 5.00 5.5 5.51 to 6.22
    Between 2 years 1 day and 3 years 5.20 5.5 6.22 to 6.60
    Between 3 years 1 days and 5 years 5.45 6.7 6.60%
    5 years 5.45 -- --
    Between 5 years 1 day and 10 years 5.60 -- --

    The source taken to make this comparison table is from HDFC Bank, India Post, and Bajaj Finserv.

    Senior citizens will receive an additional interest rate of 0.50% for investing in a bank FD, and 0.25% for investing in an FD scheme offered by an NBFC.

    Frequently Asked Questions (FAQs)

    1. Is TDS applied?

      TDS will be applied if annual interest exceeds Rs.40,000.

    2. What is the frequency of compounding of interest?

      The interest is compounded on a quarterly basis.

    3. What is the tenure if I opt for a tax-saving fixed deposit scheme?

      The tenure for a tax saving fixed deposit scheme is five years.

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