Which bank gives highest FD return for ₹10 lakh?

Small finance banks often provide higher rates (8% to 9%), while large banks like SBI, HDFC, and ICICI generally offer around 6.8% to 7.5% depending on tenure and customer type.

Do senior citizens get higher FD rates?

Yes. Most banks offer an additional 0.25% to 0.50% interest to senior citizens, improving total maturity amount.

Is FD interest taxable in India?

Yes, FD interest is taxable as per your income slab. Banks may deduct TDS if annual interest crosses threshold limits.

Should I choose FD or SIP for long-term goals?

FD is suitable for capital safety and predictable returns. SIP is generally better for long-term wealth creation with higher return potential but market-linked risk.

FD & SavingsMarch 30, 20266 min read

₹10 Lakh FD Interest Per Month in 2026: SBI, HDFC, ICICI & Post Office Comparison

Q: How much monthly interest does ₹10 lakh FD give?

At 7% annual rate, ₹10 lakh FD gives around ₹5,833 per month in simple-interest terms. Effective annual yield may vary with compounding frequency.

A ₹10 lakh fixed deposit is a popular choice for conservative investors and retirees. This guide compares interest income and maturity values across major Indian banks and schemes.

₹10 Lakh FD Interest Comparison (5-Year Tenure)

Institution	Regular Rate	Senior Rate	Maturity Value	Total Interest
SBI	6.80%	7.30%	₹13,96,100	₹3,96,100
HDFC Bank	7.00%	7.50%	₹14,14,780	₹4,14,780
ICICI Bank	7.00%	7.50%	₹14,14,780	₹4,14,780
PNB	6.80%	7.30%	₹13,96,100	₹3,96,100
Post Office Time Deposit	7.50%	7.50%	₹14,62,020	₹4,62,020
Small Finance Bank (avg)	8.50%	9.00%	₹15,20,950	₹5,20,950

Monthly Interest on ₹10 Lakh FD

At 6.8%: ~₹5,667 per month
At 7.0%: ~₹5,833 per month
At 7.5%: ~₹6,250 per month
At 8.5%: ~₹7,083 per month

These are simple-interest equivalents for monthly planning. Actual credited payout depends on product type, compounding, and payout option (cumulative vs non-cumulative).

Use our FD Calculator for exact maturity and year-wise projections.

FD Tax and Practical Considerations

Tax: FD interest is taxable as per slab.
TDS: Banks deduct TDS above threshold interest limits.
Safety: DICGC insurance covers up to ₹5 lakh per depositor per bank.
Liquidity: Premature withdrawal can attract penalties.
Diversification: Split large deposits across banks for risk management.

FD vs SIP: Which One Should You Choose?

For short-term goals and capital protection, FD works well. For long-term goals like retirement and wealth creation, SIP usually has higher return potential. Many investors use both: FD for stability, SIP for growth.

Read SIP vs FD comparison for a detailed strategy.

Frequently Asked Questions

How much monthly interest does ₹10 lakh FD give?

At 7% annual rate, it is approximately ₹5,833 per month in simple-interest terms.

Which bank gives highest FD return in 2026?

Small finance banks generally offer higher rates than large banks, though risk and terms differ.

Do senior citizens get better FD rates?

Yes, most banks provide 0.25% to 0.50% additional rate to senior citizens.

Is FD interest taxable?

Yes, FD interest is taxable as per your income slab and may be subject to TDS.