How much interest per month can I get if put 5 crore INR as a fixed deposit in India? I’ve been running a hotel business since 1990. I want to put some of my money in a fixed deposit. How much money can I get per month in interest?

Running the hectic hotel business since 1990, you’ve truly come a long way. Just like ensuring guests have the best stay, parking your hard-earned money in the right financial avenue is equally critical.

1. Interest Rates and Earnings: As of now, fixed deposit interest rates for large amounts in prominent Indian banks hover around 5% to 7% annually. Let’s work with an average of 6% for our calculation. On a ₹5 crore deposit, this would translate to an annual interest of ₹30 lakh. Monthly, you’re looking at approximately ₹2.5 lakh in interest.
2. Tax Implications: Interest earned on fixed deposits is taxable. Depending on your overall income, you could fall into one of the income tax slabs in India, which range from 10% to 30%. Engaging with a tax consultant will give clarity on the post-tax earnings.
3. Senior Citizen Advantage: If you’re 60 or above, many banks offer an additional 0.5% interest on fixed deposits. That little extra can mean a lot over time.
4. Reinvestment: Instead of just taking out the monthly interest, another approach could be to reinvest the interest in instruments like mutual funds or equities. Using the Roots and Wings philosophy can be beneficial, seeking companies with strong balance sheets (Roots) and consistent growth prospects (Wings). This can potentially offer better returns in the long run.
5. Alternative Options: While fixed deposits are safe, they might not offer the best returns, especially considering inflation. Collaborating with a SEBI Registered Investment Advisor can provide insights into alternative investment avenues that might be more lucrative.
6. Stay Updated: FD rates change, often influenced by the RBI’s monetary policies and other economic factors. It’s always good to keep an eye out and be in the know.

To sum up, parking ₹5 crore in a fixed deposit can provide a comfortable monthly interest. But it’s always worth exploring if this traditional path provides the most efficient returns for your hard-earned wealth. Remember what the iconic investor Benjamin Graham once said, “The individual investor should act consistently as an investor and not as a speculator.” If you seek a trusted guide on this journey, consider Jama Wealth’s PMS services and associate investment advisory services.