Calculate Monthly Interest for 10 Lakh FD
Building a financial portfolio can be tough. But the hardest decision that you will need to make is regarding the instruments that you should select for building your financial portfolio. Most investment plans are tailored to meet specific life goals and this is why it is vital to have a safe and risk-free investment as part of your plan as well. One such plan is commonly known as the Fixed Deposit (FD).
Understanding Fixed Deposits
In fixed deposits, individuals can invest a lump sum amount of money for a predetermined rate of investment. This is done for a fixed period. It is possible for investors to customize their fixed deposit returns on a monthly, quarterly, half-yearly, and annual basis depending on their needs and requirements. This option is also available when it comes to 10 lakh fixed deposit interest.
Investors also have the option to invest their funds in a cumulative or non-cumulative fixed deposit. With a cumulative fixed deposit, the interest amount is compounded over the term of the deposit. It is paid full at the time of maturity. On the other hand, with a non-cumulative fixed deposit, the interest amount is payable in a monthly, quarterly, half-yearly, or annual fashion.
If you have chosen a monthly interest of 10 lakh in the bank, then that is a great investment decision. This 10 lakh interest per month will provide you with the financial stability that you need with time.
Most investors think of fixed deposits as prudent and secure investment options that can give excellent 10 lakh FD interest per month. However, it should be noted that the interest rates of fixed deposits can differ from one bank to another. In order to understand the benefits of investing in a fixed deposit, let’s look at the monthly interest rate of a fixed deposit worth INR 10 lakh.
What is the Monthly Interest on an INR 10 Lakh Fixed Deposit?
In the case of a non-cumulative fixed deposit with a tenure of 12 months, an individual can receive an interest of 5.65% per annum on the investment of INR 10 lakh. This rate of interest is quite good and will fetch an individual INR 4,708.33 per month. This means that on a quarterly basis, one will make INR 14,125. On a half-yearly basis, this value will be INR 28,250 and on a yearly basis, the value will be INR 56,500.
However, what if the interest rate in your bank is not 5.65%? In that case, the monthly interest value will also vary. For example, if the bank offers a monthly interest between 2.7% and 5.5%, then the interest rate will change according to that value.
Why Should You Invest INR 10 Lakh in a Fixed Deposit?
There are several reasons why you should consider investing in a fixed deposit. Some of those reasons are:
- Higher Interest Rates: In comparison to the interest rates of a savings account, the interest rates of fixed deposits are significantly higher. This means that you can get a better return on your money if you put it in a fixed deposit.
- Assured Returns: The best benefit of investing in a fixed deposit scheme is that investors would get fixed and guaranteed returns. There is virtually no risk and this investment option is completely safe.
- Flexibility: Investing in a fixed deposit scheme can be very flexible for an investor. One has complete say over the tenure and the amount that one wants to select for a fixed deposit scheme.
- Better Interest Rates for Senior Citizens: Individuals over the age of 60 years get an additional 0.25% – 5% interest rates on their fixed deposit schemes. This is a great feature that allows senior citizens to get maximum returns on their investments.
- Comfort of Investing: Investors can invest in fixed deposits from the comfort of their homes. In some cases, investors also receive an additional 0.10% of interest rate when they are applying for their fixed deposit schemes online.
The Fixed Deposit Payout Structure
In India, the fixed deposit payout structure is also quite flexible. Investors can opt for fortnightly, monthly, quarterly, or annual interest payouts. These payouts are available with most non-cumulative fixed deposit schemes in India. If you want to know more about the fixed deposit interest rates offered by your bank, then you should visit your bank’s nearest branch office.
Opting for Fixed Deposits
Currently, it’s no surprise that the economy of the country does not look very good. The market movements are unpredictable at best and it can be very challenging for an individual to navigate all of this without any sense of financial certainty and assurance. This is why it is a good idea to invest in a fixed deposit scheme.
Fixed deposit schemes help you understand what you are getting into from the first moment. The investor has control over the tenure and amount of the fixed deposit. Further, there is a pre-decided interest rate that one can clearly see before investing in a fixed deposit scheme. There are no surprises along the way and it allows the investor to plan his or her future in a better manner.
At the end of the day, one should remember that it’s important to have a diverse investment portfolio. Depending on your age and life stage, you might want to have a good mixture of risk and risk-free investment options that will give you guaranteed results in the long run. In this manner, you and your family can have a safe and secure financial future.