Monthly Interest on a Fixed Deposit of Rs. 10,000

As a working professional or business owner, building a sizable corpus is crucial for financial security.

By investing a sum like Rs. 10,000 in a fixed deposit (FD), you can benefit from regular interest payouts, turning your idle funds into a reliable income stream. Fixed deposits are a popular choice due to their stability and the attractive interest rates they offer, which can help you earn a consistent monthly return on your investment.

Investors seeking regular monthly income can benefit from non-cumulative fixed deposits, where interest is paid out at regular intervals. With a Rs. 10,000 FD, you can expect a modest yet steady interest income, which varies depending on the interest rate offered by the bank or financial institution.

To book a Fixed Deposit (FD), you’ll typically need proof of identity, proof of address, passport-sized photographs, PAN card, and existing bank account details. Senior citizens may require proof of age.

Please note that the documents required for booking a Fixed Deposit may vary depending on the financial institution. It is advisable to check with your bank for specific requirements.

Reinvestment or cumulative FD

Reinvestment or cumulative fixed deposits are popular among those who prefer to receive their interest earnings at maturity rather than periodically. This option allows the interest to be compounded annually, enhancing the total returns over the deposit period. It's particularly beneficial for long-term investments, as the power of compounding can significantly increase the final payout.

Taxation on the monthly interest payout on an FD of Rs. 10,000

Based on your income tax bracket, here are some taxation rules on the interest per month on an FD of Rs. 10,000 based on various conditions:

• If the monthly interest payout remains below Rs. 40,000, you need not pay tax
• 10% TDS is applicable on interest earnings exceeding Rs. 40,000 in a year for regular citizens
• Senior citizens need to pay TDS if the interest earnings surpass Rs. 50,000
• 20% TDS is applicable if you fail to provide PAN card details

Conclusion

Investing in a fixed deposit of Rs. 10,000 is a secure and reliable option for both senior citizens and individuals aged below 60. With varying interest rates and the option to reinvest, you can select a tenure that aligns with your financial goals and maximise your returns. For precise calculations, you can use a Bajaj Finance fixed deposit interest calculator to estimate your earnings based on different tenures and interest rates.