50 Lakh FD Interest Per Month

Let’s be honest—figuring out the monthly interest for a 50 lakh FD is not just a math exercise. It is about real goals: building a steady income, creating a safety net, or simply making your savings work harder. 

The numbers matter, but so does the peace of mind you get from knowing exactly what to expect from each type of bank. 

With interest rates shifting every few months, and every bank offering its own mix of tenures and perks, the landscape can feel like a maze.

That is why we have pulled together, bank-by-bank breakdown of 50 lakh fix deposit interest per month across national, state, and district banks. 

You will see actual rates, side-by-side comparisons, and the tenure options that could change your monthly payout by thousands of rupees.

If you are looking for a way to turn 50 lakh into a reliable monthly income, or just want to see which bank gives you the best deal, you are in the right place.

The tables below are packed with up-to-date data, so you can compare, calculate, and choose your next step with confidence.

Ready to see how much your 50 lakh FD could earn every month?

Let’s get into the details.

How Is Interest Calculated on a 50 Lakh Fixed Deposit?

When you put ₹50 lakh into a fixed deposit, the monthly interest you earn depends on a few simple but important factors: the interest rate offered by the bank, the tenure you choose, and how often the interest is paid out. 

Let’s break down exactly how banks calculate your monthly FD interest—so you know where every rupee comes from.

The Core Formula

Banks use a straightforward formula to calculate monthly interest on a fixed deposit:

Monthly Interest = Principal × Interest Rate (p.a.) / 12×100

So, if you deposit ₹50 lakh at an annual rate of 7%, your monthly interest would be:

50,00,000 × 7 / 12×100 = ₹29,167

This payout lands in your account every month, giving you a steady, predictable income stream.

What Actually Affects Your Monthly Interest?

• Principal Amount: Here, it is ₹50 lakh. The higher the principal, the higher the interest.
• Interest Rate: This varies by bank, tenure, and whether you are a senior citizen.
• Tenure: Longer tenures sometimes fetch better rates, especially with NBFCs and small finance banks. For example, a 10-year FD at Mahindra Finance can go up to 8.55% for regular and 8.80% for seniors.
• Payout Frequency: Most banks let you choose monthly, quarterly, or annual payouts. For monthly income, select the ‘monthly payout’ option when booking your FD.

50 Lakh FD Interest Per Month: National, State, and District Banks

Comparing the monthly interest you can earn on a 50 lakh FD across national, state, and district banks gives you a clear edge when picking where to invest your money. 

Each category of bank comes with its own set of interest rates, tenure options, and payout rules, which can make a real difference in your monthly income. 

Let’s break down exactly what each type of bank offers for a 50 lakh fixed deposit, so you can see where your money works hardest.

Monthly Interest on Fifty Lakh FD in National Banks

State Banks and Their Monthly Interest on Fix Deposit of 50 Lakh

50 Lakh FD Interest Income in District & Regional Banks

Note: District banks may have deposit caps and insurance limits. Always check before making a large deposit.

Small Finance Banks & Housing Finance Companies

TDS on 50 Lakh Fixed Deposit: What You Need to Know

When you earn interest on a 50 lakh fixed deposit, the bank doesn’t just hand over the entire interest amount—there is tax in the picture. This tax is called TDS, or Tax Deducted at Source. 

Here’s how it works, what the rules are, and what you can do to manage your tax outgo.

How Much TDS Will Be Deducted on Interest Income on FD of 50 Lakh?

• If your total FD interest in a financial year crosses ₹40,000, banks will deduct TDS at 10% from your interest payout. For senior citizens, this threshold is higher at ₹50,000 per year.
• If you haven’t provided your PAN to the bank, the TDS rate jumps to 20%.

What If You Have FDs in Multiple Branches or Banks?

• TDS is calculated per bank, not per branch. So, if your total FD interest with one bank exceeds the threshold, TDS will be deducted—even if your FDs are split across branches.
• If you have FDs in different banks, each bank will apply TDS only if your interest with them crosses the threshold.

How Does TDS Affect Your 50 Lakh FD?

• With a 50 lakh deposit, your annual interest will almost always cross the TDS threshold, no matter which bank you choose.
• For example, at 7% interest, you earn ₹3,50,000 per year—well above the ₹40,000/₹50,000 limit. So, TDS will be deducted every year on your interest income.

Is TDS the Final Tax?

• TDS is not the final tax. The interest you earn on your 50 lakh FD is added to your total income and taxed as per your income tax slab.
• If your total tax liability is higher than the TDS already deducted, you’ll need to pay the difference when you file your tax return.
• If your tax slab is lower, you can claim a refund for the extra TDS.

TDS for NBFCs and Housing Finance Companies

• For NBFCs and housing finance companies, TDS is deducted at 10% if your annual interest exceeds ₹5,000. This is a much lower threshold, so even small deposits can attract TDS.

How to Avoid or Reduce TDS?

• If your total income is below the taxable limit, you can submit Form 15G (for non-senior citizens) or Form 15H (for senior citizens) to the bank. This tells the bank not to deduct TDS.
• But remember, this is only if your total taxable income is below the exemption limit.

If you’re planning a 50 lakh fixed deposit, factor in TDS and your overall tax slab. 

It is a good idea to keep your paperwork in order and talk to your tax advisor if you are unsure about the best way to handle your FD interest income.

Alternative Investments to 50 Lakh FD for Higher Returns

A 50 lakh fixed deposit is safe, but it may not always deliver the growth you want, especially with interest rates hovering between 6% and 7.5%. 

If you are aiming for higher returns and are willing to step a bit outside your comfort zone, there are several alternative investments worth considering. 

Each comes with its own risk and reward profile, so it is important to match your choice with your financial goals and risk appetite.

1. Peer-to-Peer (P2P) Lending

P2P lending platforms, such as LenDenClub, let you lend money directly to borrowers and earn interest that often beats traditional FDs. 

Returns can reach up to 12%–15% per annum, and you can choose tenures from 1 to 5 years.

The process is 100% digital, and you get regular monthly repayments, making it a solid option for those seeking higher monthly income. 

Do keep in mind, though, that P2P lending carries higher risk compared to FDs, since returns depend on borrowers’ repayment performance.

2. Mutual Funds

Mutual funds pool money from investors and invest in stocks, bonds, or a mix of both. 

Large-cap mutual funds have delivered average annual returns of around 12% in recent years. 

Debt funds and hybrid funds offer a balance between risk and return, with less volatility than equity funds. 

You can invest lump sums or set up SIPs, and there’s no lock-in for most open-ended funds. 

Keep in mind, mutual funds are market-linked, so returns can fluctuate.

3. Corporate Deposits

Corporate deposits, offered by NBFCs and large companies, provide fixed interest rates—sometimes as high as 9%–12% per annum. These work like FDs but are not covered by deposit insurance, so check the company’s credit rating before investing. 

Tenures are flexible, and payouts can be monthly, quarterly, or at maturity. 

Corporate deposits are a good pick for those comfortable with a bit more risk in exchange for better returns.

4. Real Estate

Real estate can offer both capital appreciation and rental income. While property prices and rents can go up and down, long-term investors have often seen strong returns, especially in growing cities. 

Real estate requires a higher initial investment and comes with its own set of risks—like liquidity and market cycles—but it can be a strong wealth-building tool for patient investors with 50 lakh rupees.

5. National Savings Certificate (NSC) and Public Provident Fund (PPF)

If you want government-backed safety but higher returns than a bank FD, NSC and PPF are worth a look. 

NSC currently offers around 7.7% per annum, and PPF offers 7.1% (as of April 2025). 

Both come with tax benefits under Section 80C, though PPF has a 15-year lock-in. 

These are great for conservative investors looking for stable, long-term growth.

6. Monthly Income Plans (MIPs) and Debt Funds

Monthly Income Plans are hybrid mutual funds that invest mostly in debt and a small portion in equity. They aim to provide steady monthly payouts, with returns typically higher than FDs. 

Debt funds, on the other hand, invest in bonds and government securities and offer 8%–10% returns with moderate risk.

7. Gold

Gold is a classic hedge against inflation and currency swings. You can invest in physical gold, gold ETFs, or sovereign gold bonds. 

Over the long run, gold has delivered returns that sometimes outpace FDs, especially during uncertain times. 

It is a good way to diversify your portfolio and add a layer of safety.

Conclusion

You’ve seen the numbers, compared the banks, and explored alternatives. Now it is time to put your plan into action. 

Start by listing your priorities—whether it’s monthly income, safety, or growth—and match them with the banks and products that fit best. 

If steady monthly interest on a 50 lakh FD is your goal, pick the bank and tenure that gives you the payout you want, and don’t forget to factor in TDS and your actual post-tax returns.

If you’re open to higher returns, split your investment—put a portion in FDs for security, and try options like P2P lending or mutual funds for growth.

Don’t just stop at the first rate you see. Call or visit a few banks, ask for special senior citizen rates if you qualify, and use online FD calculators to double-check your monthly interest. 

Your 50 lakh can work harder for you, if you take a few minutes to compare, calculate, and act.

So, grab your numbers, pick your bank, and get started.

The sooner you move, the sooner your money starts earning for you.