A ₹1 crore fixed deposit (FD) for 5 years can yield between ₹35 lakh and over ₹47 lakh in total interest, depending on interest rates ranging from 6% to over 8% p.a.. For instance, a 5-year FD at 8.15% p.a. can generate interest of ₹47,95,212. Common terms for this investment include cumulative fixed deposit, non-cumulative FD, secured deposit, or long-term bank deposit.
For a tenure of 5 years, the ₹1 Crore FD interest per month can go up to approximately ₹66,666 at an interest of 8%, yielding ₹46.9 Lakhs as total interest earned.
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.
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.
In short, FDs are simpler, more secure and less liquid. Bonds, particularly corporate bonds, can offer higher returns but carry credit and market risk. Government bonds are generally considered very safe but offer lower yields. Learn more about what a bond is with Capital.com.
The National Savings Time Deposit Account (popularly known as Post Office Fixed Deposit) opened for 5-year tenure also qualifies for the same deduction. However, depositors should note that the interest income on FD is taxable and is taxed under “Income from other sources” in the IT return.
50 Lakh Fixed Deposit (FD) Scheme Interest Rate for 1 Year. Fixed Investment Plan up to 7.65%* p.a. Interest rates. Grow your savings with FD interest rates as high as 8.15%* p.a.
Shriram Finance offers one of the highest fixed deposit interest rates to help you grow your investment securely. Get up to 8.15%* p.a. on your Shriram FD, (including an additional benefit of 0.50%* p.a.
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.
Where Can I Invest 1 Crore to Get Monthly Income in India?
Tax on Interest Earned from ₹1 crore FD
Banks automatically deduct TDS at 10% if your total FD interest across all accounts with them exceeds ₹40,000 annually (₹50,000 for senior citizens aged 60+). With a ₹1 crore deposit earning 7% annually, your interest would be ₹7 lakhs, making TDS deduction inevitable.
The amount will depend on the returns from your investments. For instance, if you aim for a return of 15% per annum, you would need to invest approximately ₹1.3 to 1.5 lakhs per month to reach ₹1 Crore in 5 years. A financial tool calculator can help determine the exact amount based on your expected returns.
A Fixed Deposits (FD) is a popular investment option for non-resident Indians (NRIs) looking to earn a fixed return on their money. Along with the advantage of a guaranteed interest rate, they offer the stability and security of investing with a bank or financial institution.
Key Takeaways
Use an FD when interest rates are relatively high and expected to drop, so you lock in better returns before the rate falls. Compare bank FD rates and terms, check for premature withdrawal penalties and then deploy funds in an FD to secure capital and earn steady interest.
Loss of Interest: When an individual withdraws before maturity, they must know that they will not get the exact amount based on the rate of interest and duration of the fixed deposit because it has withdrawn before the tenure that was decided on the date of booking the FD.