Yes, you can deposit ₹10 lakh (1 million) in a Fixed Deposit (FD) in India. There is no maximum limit on the total amount you can invest in an FD, making it a secure option for large sums. However, for cash deposits of ₹10 lakh or more in a financial year, banks are required to report this to the income tax authorities, so you must be prepared to provide proof of the source of funds.
When considering investing ₹10 lakhs in a fixed deposit, there are a few factors to evaluate: Returns: The returns on FDs on ₹10 lakhs may range from 4% to 8% or more, depending on the financial institution and tenure opted for. This would mean an interest income of ₹50,000 to ₹70,000 per annum.
Typically, the minimum deposit amount ranges from Rs 1,000 to Rs 10,000, depending on the bank. On the other hand, there is no maximum limit for FDs, allowing investors to park substantial amounts. Tenure and Premature Withdrawal: FDs are known for their fixed tenures, ranging from 7 days to 10 years or more.
If you deposit more than ₹10 lakhs in cash in your savings account in a year, it gets reported to the Income Tax Department. You'll need to provide your PAN for such deposits. Too many large cash deposits might lead to a tax notice. Banks are required to inform the government about these big transactions.
10 Lakh FD are taxable. The interest is subject to 10% TDS, and the financial organisation where you hold the FD account will deduct the tax amount before crediting the interest amount to your account. However, the TDS is applicable only if the interest earned from your FD is more than Rs. 40,000 in a financial year.
So, if you are looking to invest Rs. 20 Lakh in FD with a high interest rate, you can consider opening an FD account with Mahindra Finance. Our interest rate on FD starts from 7.20% per annum, and if you are a senior citizen, you can get an additional interest of 0.25%.
Fixed deposits can be a great way for you to earn stable returns on your investments, especially when investing large amounts such as ₹2 Crores. You need to compare the interest rates across issuers and choose a suitable tenure. Your interest earnings depend on the tenure you choose and the FD rate.
To earn Rs. 50,000 per month from an FD, you need to consider the interest rate offered. For example, at an 8% annual interest rate, you'd need an FD of around Rs. 75 lakhs.
Options Available to Invest 10 Lakh Rupees
The FD vs stocks comparison highlights even starker differences in risk and return potential: Return potential: Stocks have historically delivered 12-15% annual returns over long periods compared to 6-8% for FDs. Volatility: Stock prices can fluctuate dramatically daily, while FD returns remain fixed.
For a ₹1 crore FD, the annual interest of ₹7.75 lakh would be added to your total income and taxed as per your applicable slab rate. Key Points: TDS (Tax Deducted at Source): Banks deduct TDS at 10% if the interest exceeds ₹40,000 (₹50,000 for senior citizens) in a financial year.
The cash deposit limit in savings accounts as per income tax is ₹10 Lakh during a financial year. All banks or financial institutions must declare large cash deposits according to Section 114B of the Income Tax Act, 1962.
FDs that let your investment grow by 100% in 10 years:
Since the rate of return is higher than 7.18 per cent, your investment will grow by more than double. Suppose you invest ₹1 lakh, your investment will grow to ₹2.06 lakh in a decade.
If it's around ₹5 crore, 💰 You fall in the Rich category. If it's up to ₹2 crore, 🏡 You're Upper Middle Class.
The 7-3-2 rule is a financial strategy for wealth building, suggesting it takes 7 years to save your first major financial goal (like a crore), then accelerating to achieve the next goal in 3 years, and the third goal in just 2 years, leveraging compounding and disciplined, increased investments (like a 10% annual SIP hike). It highlights how returns compound faster over time, drastically reducing the time needed for subsequent wealth targets, emphasizing patience and consistent, growing contributions.
There are mainly two types of modes of receiving the interest. One is the cumulative option where the interest is compounded quarterly, paid on the maturity of the FD/ auto-renewed. The other is a non-cumulative option, which is paid in the form of monthly interest or quarterly or on maturity.
The SBI Amrit Vrishti Scheme 2026 (also known as the SBI 444 Days FD) is a special fixed deposit product from State Bank of India offering a fixed tenure of 444 days with competitive interest rates. As of December 19, 2025, the scheme offers 6.45% p.a. to regular investors.
In many cases, bank deposits aren't reported to the IRS. However, banks do report deposits over $10,000. This is required as part of the Bank Secrecy Act (BSA).
The best way to deposit large amounts of cash is to visit a branch in person. It's safer, and a banker can count the money in front of you in a more private area to ensure you agree on the deposit amount.
The IRS "10k rule" primarily refers to the requirement for businesses and financial institutions to report cash transactions over $10,000 by filing Form 8300 (for businesses) or a Currency Transaction Report (CTR) (for banks), under the Bank Secrecy Act. This rule helps combat money laundering, tax evasion, and terrorist financing, requiring reporting for single transactions or related transactions totaling over $10,000 in cash within a year, with penalties for non-compliance.