If you’re thinking about parking a sizeable sum like 3 crores in a fixed deposit (FD) with a bank, it’s crucial to understand the returns you can anticipate. The interest payout from an FD is akin to the reliable churning of lassi – steady, predictable, and smooth.
- Interest Rate: While the interest rate on FDs varies across banks and tenure, as of recent trends in India, let’s assume a ballpark interest rate of 6% per annum for a regular fixed deposit. Do note that senior citizens usually enjoy a slightly higher rate.
- Interest Payout Frequency: Banks typically offer various interest payout options – monthly, quarterly, half-yearly, or annually. For this scenario, we’re considering a monthly interest payout.
- Calculation:Interest per month = (Principal x Annual Interest Rate) / 12 months= (3,00,00,000 INR x 6/100) / 12= 1,50,000 INR per month
So, for a fixed deposit of 3 crores at an assumed interest rate of 6% p.a., you’d earn around 1.5 lakh INR per month as interest.
But, it’s essential to remember a couple of things. First, the actual interest might be a bit less due to the compounding effect if you choose reinvestment. Secondly, the interest earned from FDs is subject to TDS and is taxable according to your income tax slab.
While FDs offer safety and predictability, they may not always provide the best post-tax returns. If wealth growth is your primary aim, it might be worth diversifying and considering other financial instruments. As someone who champions the Roots and Wings philosophy, I advocate for a blend of stability and growth (some exposure to equities) in one’s investment portfolio. A SEBI Registered Investment Advisor can guide you in crafting a strategy tailored to your financial aspirations. If you seek a trusted advisor, Jama Wealth’s services might be a suitable avenue to explore.
