Fixed Deposit Interest for 30 Lakhs

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How much is the Fixed Deposit interest per month on an INR 30 Lakh FD?

Key Takeaways

• Fixed Deposits are the most popular investments among conservative investors.
• You can invest a sum of your choice for a specified period at a predetermined rate of interest.
• You can opt for either compound interest or regular interest pay-out.
• FDs are safe, low-risk investments that offer capital protection.
• 30 lakhs Fixed Deposit interest per month can serve as an additional income source.

A Fixed Deposit, or FD, is a popular way to invest money in India. It is offered by both, banks and Non-Banking Financial Companies (NBFC). With an FD, you can invest your money without taking on high risks. You can invest your funds for a pre-decided period, choosing tenures ranging from 7-14 days to 10 years. Plus, you can also earn additional income at a predetermined rate of interest. Depending on the bank or financial institution you choose, the interest rates offered will vary. So, how can you determine the INR 30 lakh Fixed Deposit interest per month? Read on to know more.

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INR 30 Lakhs Fixed Deposit interest – How it Works

If you choose to invest an amount of Rs 30 lakhs in a Fixed Deposit, you can rest assured that you will receive the invested sum upon maturity. Along with the initial sum of INR 30 lakhs, you will also receive the interest income. The interest earned depends on your chosen tenure. E.g., banks offer lower interest rates on shorter term FDs. Moreover, you can select the mode of interest amount payment from two broad categories.

Cumulative Fixed Deposits

If you opt for Cumulative interest FDs, the annual interest you earn is reinvested in the FD. Thus, when the FD matures, your maturity amount will comprise both the initial investment of INR 30 lakhs along with the interest earned over the term. This type of FD lets you reap the benefits of compound interest, with the principal amount increasing with each reinvestment. In turn, the interest earned increases as well, and the cycle continues until the end of the tenure.

Non-Cumulative Fixed Deposits

Alternatively, with a Non-Cumulative interest FD, you will receive interest at fixed intervals and enjoy a regular stream of income. The interest calculated works on the basic simple interest formula, and you can choose to receive it on a monthly, quarterly, half-yearly, or annual basis.

How to Calculate 30 lakhs Fixed Deposit interest per month?

The interest calculation on an FD depends on various factors like the amount invested, interest rate, and investment tenure. You can manually calculate the 30 lakhs Fixed Deposit interest per month with the below formula:

Interest on FD = Amount Invested x Interest Rate x (Duration/ 12 months)

However, you can also use Fixed Deposit Calculators to get accurate figures regarding the 30 lakhs Fixed Deposit interest per month. These FD calculators are freely available online tools that eliminate manual calculation errors and provide 100% accurate results.

Documents Required for Opening a Rs. 30 lakh FD

The account opening process with DBS Bank is fully paperless and doesn’t require a signature. To open an online Fixed Deposit (FD), you only need a DBS Bank Savings Account with enough balance for the FD. Have your Aadhaar card and PAN ready for verification when opening your account.

Here’s a quick guide to get started:

• Open the digibank app and tap on ‘Deposits’ from the home screen.
• Choose ‘Fixed Deposit’ and enter the amount you wish to invest.
• Select a tenure from the available options or click ‘Show All Plans’ to pick a custom tenure.
• Proceed to add Maturity Instructions, Nominee details, and a Deposit name.
• Review and agree to the terms and conditions for the FD.
• Your FD account will be activated, and you’ll receive confirmation by the next business day. You can view or download this in the ‘Certificates’ section under ‘Menu’ on your dashboard.

These steps can also be followed when opening an FD via Internet Banking.

Final Note

FDs are ideal for senior citizens and low-risk investors looking for safe capital protection. You can also invest in government-backed schemes like Post Office FDs and Tax-savings FDs with fixed five-year tenures as safe investment avenues. If you cannot spare a lump sum amount for a term deposit like an FD, you can opt for a Recurring Deposit to invest money regularly in small amounts.

If you prefer to save time and effort, and open an FD account remotely, then download the digibank by DBS app right away and even open your savings account with us!

Frequently Asked Questions (FAQs)

1. How much interest will I get on a fixed deposit of ₹30 Lakhs?

   Your Rs. 30 lakh fixed deposit's interest rate will vary based on the duration you select and the current DBS Bank interest rates available. Periodically, interest rates may change.

2. Is there a tax applicable on the interest on an FD of ₹30 Lakhs?

   In general, interest received on fixed deposits is taxed. However, depending on your unique situation and the type of FD, there can be tax exemptions or deductions available.

3. Is there a penalty for withdrawing a fixed deposit of ₹30 Lakhs before maturity?

   Yes, taking money out of a fixed deposit before it matures usually has a penalty. Among other things, the penalty changes based on how many days are left till maturity.

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*Disclaimer: This article is for information purposes only. We recommend you get in touch with your income tax advisor or CA for expert advice.