5 Lakhs FD Calculator

₹5 Lakh Fixed Deposit: Interest Per Month

If you are searching for 5 lakhs FD interest per month, this is the figure you want. At an illustrative 7% a year, ₹5 Lakh generates ₹35,000 of interest annually — which works out to ₹2,917 a month, or ₹8,750 a quarter if you take it quarterly instead.

One condition attaches to that number, and it matters: you only receive it monthly if you open a non-cumulative deposit, where interest is credited out to your savings account as it falls due. Five lakh is the largest deposit that still sits entirely inside deposit insurance, which is why it is such a common single-bank ceiling.

Or Leave It In: What ₹5 Lakh Grows To

The alternative is a cumulative deposit, where nothing is paid out along the way. The interest stays in and compounds quarterly, and you receive one payment at the end. You give up the monthly income; in exchange the total is higher, because interest starts earning interest.

This is what the calculator at the top of the page computes. If you came here for the monthly figure, the number in the maturity box is answering the other question — both are shown below so you can weigh them against each other.

Read the last two columns against each other and the cost of the monthly route becomes visible: over five years compounding adds ₹32,389 more on the same ₹5 Lakh.

Five lakh is where the monthly option starts to be worth considering rather than automatic — roughly three thousand a month covers a utility bill or an insurance premium, which is a real use rather than a rounding error.

TDS on a ₹5 Lakh Fixed Deposit

At 7%, ₹5 Lakh generates about ₹35,000 of interest a year, which sits below the ₹50,000 threshold at which banks deduct TDS under Section 194A. On this deposit alone, no tax is deducted at source.

The threshold applies to your combined interest at that bank, though, not to this deposit in isolation — other deposits and accounts count toward the same figure. Adding a second deposit at the same bank can push you over it even when this one alone would not. TDS is not the final tax either way: it is an advance credit against your total liability, and interest remains taxable at your slab rate whether or not tax was withheld.

Is ₹5 Lakh Safe in One Bank?

DICGC insurance covers ₹5,00,000 per depositor per bank, principal and accrued interest together. ₹5 Lakh sits inside that limit, so this deposit is fully insured in a single bank — provided you hold no other balances there pushing the combined total over the line.

Because accrued interest counts toward the insured limit, a deposit opened at exactly five lakh drifts slightly over it as interest builds. Depositors who care about staying strictly inside the cover usually open at a little under.

Compare Before You Commit

Rates differ by bank and by tenure slab, and the gap over a deposit this size is worth checking rather than assuming. Compare lenders on the master FD calculator, or if you want a monthly cheque from a government-backed scheme instead, the Post Office MIS calculator covers that structure — though it is capped at ₹9 lakh single and ₹15 lakh joint, which may accommodate a deposit of this size.