How much money do we get monthly by depositing 20 lakhs as a fixed deposit?
1 Like
Type the same thing in Google.
Tip: you may copy paste the text as well.
1 Like
If u put 20 lacks at 6.25 percent you will get
20,00,000x6.25/100 = 125,000 for one year
Divide this by 12 month and you will get monthly 10,416 per month
However please note that when you place fd, with a bank and opt for monthly payment snd slthough the amount is 10416 per month you will get slightly lower amount due to some discount factor.
Hence always opt for quarterly interest payment when u choose fd. If you chose quarterly you will get
10416x3 = 31,250. The full amount every quarter. Few banks follow calendar quarter ie 31 mar 30 jun 30 sept and 31 dec every year to credit the interest payment. Many others follow 3 months from the date you open the fd such as. If u open fd on 10 of jan, your first interest payment will be on 10 april and so on
Just change the interest percentage as each bank offers different rate but calculation is the same
Do note the difference when u chose monthly payment
As interest rates might increase, you could park your money in sb account of the bank. In such case the bank will calculate the interest on the daily balance you maintain with the interest rate and credit the interest on a quarterly basis
Idfc is one of few bank who pays out interest on sb account on a monthly basis
You can look into their website for interest rate and do note most banks have a tired rates structure for sb account except for yes bank
Tired rates mean upto 1 lack it is xx rate over 1 lack upto 5 lack yy and so on so forth
Currently rbl offers 6.50 on fd for 3 years
Yes bank 6.25 for 10 years
3 Likes
Depends on
-for how many years ?
-at what interest rates ? (banks rates are different).
PS: There are tons of calculators available online
Finally reduce it by the tax you end up paying ( depending on other incomes).
Go and google
Better to put it in glit funds and MF backed by govt bonds or psu bonds. FD has TDS in its component.
I really do not understand as to why FD is so disliked by many because of tds. Taxes are as applicable for stocks as well, but still fd are so disliked. For me individually this is a bedrock or the first thing to do before starting venturing into stocks etc
Today the market fell by 800 odd points. I am still smiling as i know my FD will always be at my side when i need them the most….(hopefully hope there is no yes bank kind of cases)
Disc. Purely my personal view. Rach one to their own, no quarrels on this…
TDS for stocks is at a lower rate. For high salaried professionals, TDS for FD is at highest slab.
It really depends on your money management. I don’t know your money management whether you are 100% in FD or 55% in index fund with 15% in cash(operating cash) and rest In FD. It really depends on your MM.
FD works to with compounding year to year but has too much issues with TDS , interest rates and it’s slow inefficient. Nobody wants to hold FD in long run or use it as investment vehicle.
Besides you can completely write off LTGC with tax harvest which bank FD doesn’t have.
That sounds like you have not set any funds set aside for emergency or any funds you need at any given point.
Besides 800 points down is just another day for crypto traders 
.
Due to Deposit Insurance, keeping upto Rs.5Lacs per bank seems safe.
Any more than Rs.5lacs, one should maybe use a different bank,
or maybe one should invest in the secured/insured senior bonds of the bank,
Right?..
1 Like
you can get the same from a debt mutual fund and I might argue that it is safer and more tax-efficient than FD as it is diversified among hundreds of bonds and there is no need to take it out and reinvest the money, unlike FD.
Are you saying that debt mutual fund is safer than FD??. How can anyone compare FD of Banks (apart from small finance Banks) to a debt Mutual Fund with regard to safety. Leave aside Bharath bond and Gilts where there is sovereign guarantee. I am referring to Corporate Bonds.
Tax efficiency solely depends on how each individual is able to manage their portfolio. If you are a NRI, there is absolutely zero tax for that person if she parks the money in NRE FD. For Her, NRE FD is the best product. If a resident family has many members, upto the exception amount, FD can be placed. As an example, at current rate of 6.25%, a person can place a FD upto 40 lacks in each members name as the total interest amount will be 2.5 lacks. If I have many members in my family, money can be spread in their names as well. Hence it is not ok to paint one brush on FD as tax in efficient. Tax efficiency and in efficiency depends on the particular individual.
I am surprised people talk about deposit insurance when it comes to bank FD (all of a sudden they become risk conscious) whilst they are comfy in investing in debt mutual fund. Do individuals who invest in debt mutual fund even know to which companies or corporates, this money is going to. How many times have Government come out to bail out Mutual Fund and how many times have depositors money been safeguarded by tax payers money i.e yours (you guys do pay capital gain tax I suppose) when it comes to Banks. How many times have PSU banks being recapitalized for survival. Want to know if there is any such feature for a debt mutual fund. When FT folded up few funds, nothing happened, investors cried and went to court but when Yes Bank was on the brink of closure, many private sector banks came in to save it as it was systemically important bank.
I have no quarrels on any one investing in any product. Live and Let Live, and each one to their own, as each product caters to different sections of the society and not to one section.
Discl: These are my personal views and FD falls into MY strategy perfectly. Each one has the right to have different views, all products are good as long as it meets individual strategy.
The amount of money you would get monthly by depositing 20 lakhs as a fixed deposit (FD) would depend on the interest rate offered by the bank. Generally, the higher the interest rate, the higher the monthly payout.
For example, if the bank offers an annual interest rate of 6%, the monthly interest payout would be (20 lakhs x 6%)/12 = 10,000 rupees. However, if the bank offers an annual interest rate of 7%, the monthly interest payout would be (20 lakhs x 7%)/12 = 11,667 rupees.