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Monthly Interest for 5 Lakh Fixed Deposit

Keeping your savings in a bank account may seem safe, but it is not the best financial strategy to grow your money. When you park your savings in a bank account, your money earns only a minimal interest and loses its value due to inflation and the increasing cost of living. So, it is vital that you invest your savings in schemes like Fixed Deposits (FD) that yield high returns.

FD is one of the safest investment options in India. It safeguards your principal amount and also assures guaranteed returns at a fixed rate of interest, ensuring that your money keeps growing. Thus, FDs are the most practical investment option to grow your money steadily without taking any risks.

You can open an FD account with us at Mahindra Finance and get the most competitive fixed deposit interest rates of up to 8.05% p.a.

Rate of Interest on Monthly Income FD

At Mahindra Finance, we offer higher interest rates for fixed deposits as compared to other NBFCs, along with the 100% safety and security of your capital, i.e., the principal amount you invest in a fixed deposit account. As an investor, you can invest Rs. 5 Lakh in FD and earn monthly returns.

The 5 Lakh FD interest per month returns you get may vary based on the investment tenure you choose. Generally, you get higher returns if you choose a longer investment term. You can easily calculate the 5 Lakh FD monthly interest or 5 lakh FD interest for 1 year by using our FD interest calculator.

It is an easy-to-use online tool that allows you to compute the exact interest you can earn and the overall maturity amount you get after maturity. All you have to do is input certain values in the calculator, and it will automatically do the calculations and show you the results instantly.

Monthly Interest on Rs. 5 Lakh FD for Senior Citizens

At Mahindra Finance, we offer an additional interest rate of 0.25% on Samruddhi Fixed Deposits and 0.10% per annum additional interest on Dhanvruddhi Fixed Deposits to senior citizens, i.e., people how are aged 60 years or more.

The following tables show the interest on 5 Lakh FD offered per month for different durations offered by Mahindra Finance to senior citizen investors, i.e., people who are aged more than 60 years.

Dhanvruddhi Cumulative Scheme (upto 5 crore)

Period (Months) Minimum Amount (Rs.) Amount Payable (Rs.) Interest p.a (yearly) Effective Yield p.a
15 5000 5492 7.75% 7.86%
30 5000 6051 7.90% 8.41%
42 5000 6561 8.05% 8.92%

Dhanvruddhi Non-Cumulative Scheme (upto 5 crore)

Period (Months) Interest p.a #(Monthly) Interest p.a # (quarterly) Interest p.a #(Half yearly) Interest p.a *# (yearly)
15 7.25% 7.35% 7.50% 7.75%
30 7.40% 7.50% 7.65% 7.90%
42 7.50% 7.60% 7.80% 8.05%

Samruddhi Cumulative Scheme (upto 5 crore)

Period (Months) Minimum Amount (Rs.) Amount Payable(Rs.) Interest p.a* (yearly) Effective Yield p.a **
12 5000 5380 7.60% 7.60%
24 5000 5805 7.75% 8.05%
36 5000 6307 8.05% 8.72%
48 5000 6815 8.05% 9.08%
60 5000 7364 8.05% 9.45%

Samruddhi Non-cumulative Scheme (upto 5 Crore)

Period (Months) Interest p.a #(Monthly) Interest p.a # (quarterly) Interest p.a #(Half yearly) Interest p.a *# (yearly)
12 7.20% 7.25% 7.35% 7.60%
24 7.25% 7.35% 7.50% 7.75%
36 7.50% 7.60% 7.80% 8.05%
48 7.50% 7.60% 7.80% 8.05%
60 7.50% 7.60% 7.80% 8.05%

The additional interest rate on 5 Lakh FD offered to senior citizens is applicable only on deposits up to Rs. 5 Crore.

Benefits of Monthly Income Fixed Deposits

Fixed Deposits are one of the most popular and trusted investment options in India as they offer a wide range of benefits, which are mentioned below:

It lets you save and invest for a specific period of time and grow your money.

When you open a fixed deposit 5 Lakh account with Mahindra Finance, you get the flexibility to choose the interest credit period and get regular returns. You can choose to get the interest credited on a monthly, quarterly, half-yearly or annual basis.

Compared to the regular savings account, the 5 lakh FD interest per month is much higher, allowing you to grow your savings faster and accumulate a sizeable corpus.

At Mahindra Finance, you get 0.25% higher 5 Lakh FD interest for 1 year if you are a senior citizen.

You get complete security of your investment amount and assured returns.

Rate of Interest on Monthly Income FD

Fixed Deposit accounts typically pay a higher interest rate than savings bank accounts, and the interest rate, once fixed at the time of deposit, does not fluctuate till the end of the investment term. At Mahindra Finance, we offer the best interest rates for all, starting from 7.20% per annum.

The interest rate varies depending on the type of FD account you open (cumulative FD or non-cumulative FD), the interest credit period, and the overall investment tenure you choose.

Additionally, if you are a senior citizen, you get a higher interest rate of up to 0.25% than the interest offered to regular investors.

TDS of Rs. 5 Lakh Fixed Deposit

While you invest in an FD, it is paramount to understand its tax implications. The monthly interest you get on a Rs. 5 Lakh fixed deposit investment is a taxable income as per the Income Tax Laws. The tax you pay depends on your tax bracket.

The financial organisation would effectively deduct a 10% TDS (Tax Deducted at Source) if the annual interest on your fixed deposit of Rs. 5 Lakh is more than Rs. 40,000 (for regular investors) and Rs. 50,000 (for senior citizens). However, if the interest is less than the said amount, there are no tax deductions.

Additionally, if you don’t have a PAN Card, the financial organisation will levy a 20% TDS on the interest earned on Rs. 5 Lakh fixed deposit.

Frequently Asked Questions

What is the interest on Rs. 5 Lakh FD for 1 year?

How does investing 5 lakh in FD generate monthly income?

Do senior citizens have any benefit from investing in a 5 lakh FD?

What are the documents required for a Rs. 5 lakh deposit?

What are the eligibility criteria for a Rs. 5 Lakh fixed deposit?