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A ₹1 crore fixed deposit can generate a sizeable stream of predictable income. At a 6.5% annual interest rate, for example, the simple monthly equivalent is about ₹54,167 before tax. At 7.25%, it rises to approximately ₹60,417, while an 8.1% rate takes it to ₹67,500. But a ₹1 crore FD isn’t simply about finding the highest rate. At this corpus size, tenure, monthly payout calculations, taxation, deposit insurance, and concentration risk all become important.
There is also a wider question: should the entire ₹1 crore sit in one FD at all? Depending on the investor’s objective, a combination of bank deposits, bonds, and other fixed-income instruments may offer a more suitable structure.
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₹1 Crore FD Monthly Interest Across Banks in 2026
The table below uses selected current rates for deposits below ₹3 crore. Because the rates apply to different tenures, this is an illustrative comparison, not a ranking of banks.
| Bank | Illustrative tenure | Rate | Simple monthly equivalent on ₹1 crore* |
| SBI | 2 years to <3 years | 6.40% | ₹53,333 |
| HDFC Bank | 18 months to 3 years | 6.45% | ₹53,750 |
| ICICI Bank | 3 years 1 day to 5 years | 6.50% | ₹54,167 |
| Kotak Mahindra Bank | 2 years to <3 years | 6.80% | ₹56,667 |
| YES Bank | 18 months 1 day to <24 months | 7.25% | ₹60,417 |
| Suryoday Small Finance Bank | 30 months | 8.10% | ₹67,500 |
Simple calculation: ₹10,000,000 × annual interest rate ÷ 12. The actual monthly payout may be lower because banks can apply a discounted rate when interest is paid monthly.
SBI’s current retail schedule shows 6.40% [1] for 2 years to less than 3 years, while HDFC Bank’s August 2026 schedule shows 6.45% [2] for the relevant 18-month to 3-year buckets. ICICI Bank currently offers 6.50% [3] for 3 years 1 day to 5 years for general customers. YES Bank’s rate for 18 months and 1 day to less than 24 months is 7.25% [4]. Kotak’s current schedule shows 6.80% [5] for the relevant 2- to 3-year tenure, while Suryoday SFB offers 8.10% [6] on its 30-month FD for regular customers.
How Much Monthly Interest Does ₹1 Crore Earn at Different FD Rates?
A quick calculation gives you a useful estimate: Monthly interest ≈ ₹100,000,000 × interest rate ÷ 12
| FD rate | Annual interest on ₹1 crore | Simple monthly equivalent |
| 5.00% | ₹500,000 | ₹41,667 |
| 6.00% | ₹600,000 | ₹50,000 |
| 6.50% | ₹650,000 | ₹54,167 |
| 7.00% | ₹700,000 | ₹58,333 |
| 7.50% | ₹750,000 | ₹62,500 |
| 8.00% | ₹800,000 | ₹66,667 |
| 8.50% | ₹850,000 | ₹70,833 |
These figures are before tax and are best treated as estimates. A monthly-payout FD doesn’t necessarily credit exactly one-twelfth of the annual interest every month. Banks can discount the interest for monthly payments. For investors who don’t need regular cash flow, a cumulative FD may produce a different maturity value because interest is reinvested rather than paid out.
Latest Fixed Deposit Updates:
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₹1 Crore FD Interest After Tax: What Do You Actually Keep?
The headline interest rate doesn’t tell you the investor’s actual income. At 7%, ₹1 crore generates ₹7 lakh of annual interest on a simple basis. That’s approximately ₹58,333 a month before tax. The post-tax amount depends on the investor’s overall taxable income and applicable tax provisions.
This distinction matters more at ₹1 crore because the annual interest itself can be substantial. An investor should therefore compare post-tax income, not just the advertised FD rate. TDS, meanwhile, is not the same thing as the final tax liability. It is a tax collected at source when the applicable conditions are met.
Should You Put the Entire ₹1 Crore in One FD?
This is arguably the more important question at this corpus size. DICGC insures eligible bank deposits for principal and interest up to ₹5 lakh per depositor per bank. Deposits held across branches of the same bank are aggregated for this purpose. So a ₹1 crore FD is far above the statutory deposit insurance limit.
That doesn’t automatically make a ₹1 crore FD inappropriate. It does mean an investor should think carefully about bank concentration rather than treating the entire amount as insured. One possible approach is to divide the deposit across multiple banks, subject to the investor’s objectives, eligibility, and the terms offered by each institution. The decision should also consider premature withdrawal rules and liquidity rather than being based solely on interest rates.
₹1 Crore FD for Senior Citizens
Eligible senior citizens generally receive an additional interest rate on bank FDs, although the premium differs between banks and tenures. For example, HDFC Bank’s current schedule shows 7.10% for senior citizens on the 3 years 1 day to less than 4 years 7 months bucket, compared with 6.50% for general customers. ICICI Bank also offers 7.10% on selected senior-citizen tenures.
At a 7.10% annual rate, the simple monthly equivalent on ₹1 crore would be approximately ₹59,167 before tax. Again, the actual monthly payout can differ from this calculation.
Monthly Payout FD vs Cumulative FD
The right FD structure depends largely on what the ₹1 crore is supposed to do. A monthly-payout FD can provide regular cash flow and may suit an investor using the corpus to meet expenses. A cumulative FD reinvests the interest until maturity, allowing compounding to work over the tenure. It can make more sense when the investor doesn’t need the income immediately.
Before choosing, consider:
- whether monthly income is actually required;
- how long the money can remain invested;
- premature-withdrawal conditions; and
- whether the investor needs to preserve liquidity.
₹1 Crore FD vs Bonds: Are There Smarter Alternatives?
For an investor with ₹1 crore available for fixed income, bank FDs are only one possible route. Bonds can provide a defined coupon and maturity structure, but they come with issuer credit risk, liquidity risk, and market price risk if sold before maturity. A higher yield therefore needs to be assessed alongside the issuer’s credit quality and the terms of the instrument.
For example, an investor could compare the post-tax cash flow from an FD with the coupon and yield-to-maturity of an appropriately selected bond. But the two shouldn’t be treated as identical products.
₹1 Crore FD vs Debt Mutual Funds
Debt mutual funds are another alternative, but they operate differently from FDs. An FD locks in an interest rate according to its terms, whereas a debt fund’s NAV can move as bond prices and interest rates change. A debt fund therefore doesn’t provide the same predetermined maturity value as an FD. The trade-off is greater portfolio flexibility and diversification across debt securities.
For money that must be available at a known value on a known date, an FD can serve a different purpose from a debt fund. For a longer-term fixed-income allocation where some market-value fluctuation is acceptable, the comparison becomes more relevant.
₹1 crore FD Monthly Interest: Frequently Asked Questions
Yes. FD interest is generally taxable at the applicable income-tax rate. The monthly amount credited by the bank should therefore not be treated as the investor’s final post-tax income.
A monthly-payout FD is useful when you need regular cash flow. A cumulative FD reinvests interest and can produce a higher maturity value through compounding. The better choice depends on whether you need income now or are building a corpus.
Investors with a large FD corpus may consider diversifying across banks rather than concentrating the entire amount with one institution. This can also allow more of the deposits to fall within separate DICGC insurance limits, subject to the applicable aggregation rules.
Premature withdrawal may be allowed, but the bank can apply a penalty or revise the interest payable. Check the specific terms before locking such a large amount into a long-term FD.
Check the interest rate, tenure, monthly payout, tax impact, senior-citizen benefit, premature-closure rules, auto-renewal terms, and DICGC coverage. For a ₹1 crore corpus, diversification across banks and comparing FD alternatives can also be important.
Sources
- SBI — Retail Domestic Term Deposit Rates
- HDFC Bank — FD Interest Rates
- ICICI Bank — FD Interest Rates
- YES Bank — FD Interest Rates
- Kotak Mahindra Bank — FD Interest Rates
- Suryoday Small Finance Bank — Fixed Deposits
Disclaimer
Fixed returns do not constitute guaranteed or assured returns. Investments in corporate debt securities and municipal debt securities/securitized debt instruments are subject to credit risks, market risks, and default risks, including delay and/or default in payment. Read all the offer-related documents carefully. This blog/article should not be construed as financial advice or as an offer or recommendation to buy or sell any security or any products/services of/on GoldenPi or any product/services of its third-party client(s). For a detailed calculation of YTM, visit our website. T&C’s Apply.
