10 Lakh FD Interest Per Month

FAQs on 10 Lakh FD Rates

• What charges apply if a Fixed Deposit (FD) is closed prematurely within seven days of opening?

  In the case of a premature withdrawal within seven days of deposit, no interest will be paid, and no charges for premature closure will be levied.

• What are the different types of Fixed Deposits?

  The different types of FDs are Cumulative FDs, Traditional FDs with Quarterly interest pay out options, Traditional FDs with Monthly interest pay out options, and Short-Term FDs. 

• What is the duration of a Fixed Deposit?

  Banks offer Fixed Deposits with a minimum deposit of Rs 10,000 for general customers and Rs 2,000 for Fixed Deposits for minors. There are two investment plans to choose from: Traditional Plan: Under this plan, you can earn interest monthly or quarterly, according to your preference. The maturity period ranges from 7 days to 10 years. Reinvestment Plan: This plan allows you to earn interest compounded quarterly and reinvested with the principal amount. The maturity period for these FDs may range from 6 months to 10 years. 

• What is the minimum deposit amount needed to open a Money Multiplier Deposit, Flexible Fixed Deposit (FFD), or Linked FD?

  The minimum amount required to open a Money Multiplier Deposit, FFD, or Linked FD is Rs. 5,000. At the time of creation, the savings account should have a minimum available balance of Rs. 15,000. The deposit will be made in multiples of Rs. 5,000, over and above Rs. 10,000, in the savings account. 

• How often will I get paid interest on my FD?

  The frequency of the payment of interest depends on the FD plan chosen. With a reinvestment plan, interest is paid along with the principal at maturity. However, with a traditional FD, the interest pay out can be monthly, quarterly, or at other periodic intervals as per the customer's preference.

• Can TDS be deducted from the interest earned on term deposits?

  TDS is not applicable on the interest earned up to Rs. 10,000 for Fixed Deposits, Money Multiplier Deposits, and Recurring Deposits, as per Section 194A. However, if the interest received or expected to be received during the financial year exceeds Rs. 10,000, TDS will be applicable. Customers, who are not companies, firms, co-operative societies or non-residents, and who do not have taxable income can submit a self-declaration in Form 15G/15H to claim TDS exemption under Section 193 and Section 194A of the Act, in accordance with the provisions of Section 197A.

• How is the interest calculated on a Fixed Deposit (FD)?

  The rate of interest on an FD is calculated on the basis of the tenure of the FD and the existing interest rate at the time of opening the FD. The calculation of interest varies depending on the type of FD. 

• How is interest calculated for Cumulative FDs?

  Interest for Cumulative FDs is calculated for the quarter and compounded or reinvested with the principal amount. Interest for the next quarter is then calculated on the accumulated amount. 

• Are senior citizens eligible for any additional benefits on FDs?

  Yes, senior citizens are eligible for additional benefits in the form of a higher rate of interest on their FDs.