FD Calculator: How Much to Deposit for Rs 10,000 Monthly Income
Fixed Deposits (FDs) continue to be one of the most trusted investment options for Indians. They offer capital protection, assured returns, and predictable income, making them especially popular among retirees and conservative investors.
If you want your FD to generate a monthly income of ₹10,000, you need to earn ₹1.2 lakh in interest every year. This is possible through a non-cumulative FD, where the interest is paid out monthly instead of being reinvested.
How Much Should You Invest?
The amount you need to deposit depends entirely on the interest rate offered by the bank.
Why Non-Cumulative FDs Are Ideal for Monthly Income
In a non-cumulative FD, the bank pays interest at regular intervals, monthly, quarterly, or annually. This makes it an excellent choice for those who want a steady income without touching the principal amount.
Retirees often use this option to meet routine expenses while keeping their savings safe.
Where Can You Get Higher FD Rates?
Small finance banks generally offer higher interest rates than large public and private sector banks. However, investors should always check the bank’s credibility and deposit insurance coverage before investing.
Senior citizens usually receive an additional interest benefit of up to 0.50% over regular FD rates, which helps them generate better monthly income with a lower investment.
Tax Rules on FD Interest
The interest earned from FDs is fully taxable under the head “Income from Other Sources.” It is added to your total income and taxed according to your income tax slab.
Tax Benefits Available
Under the old tax regime, senior citizens can claim a deduction of up to ₹50,000 on interest income under Section 80TTB.
A 5-year tax-saving FD qualifies for deduction of up to ₹1.5 lakh under Section 80C.
When Does the Bank Deduct TDS?
Banks deduct Tax Deducted at Source (TDS) if your annual FD interest crosses the prescribed limit.
For FY 2025-26:
General investors: TDS applies if interest exceeds ₹50,000
Senior citizens: TDS applies if interest exceeds ₹1 lakh
If PAN is provided, TDS is generally deducted at 10%.
How to Avoid TDS
If your total taxable income is below the basic exemption limit, you can submit the appropriate declaration form to the bank to prevent TDS deduction.
Form 15G: For eligible individuals below 60 years
Form 15H: For eligible senior citizens
To earn ₹10,000 per month from an FD, you will need to invest between ₹15 lakh and ₹17.14 lakh, depending on the interest rate. For those seeking a safe and reliable source of regular income, especially after retirement, non-cumulative FDs remain a simple and effective solution.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. Please consult a certified financial advisor before making any decisions. NewsPoint is not responsible for any gains or losses arising from this information.
If you want your FD to generate a monthly income of ₹10,000, you need to earn ₹1.2 lakh in interest every year. This is possible through a non-cumulative FD, where the interest is paid out monthly instead of being reinvested.
How Much Should You Invest?
The amount you need to deposit depends entirely on the interest rate offered by the bank. - 7.00% interest: Invest around ₹17.14 lakh
- 7.25% interest: Invest around ₹16.55 lakh
- 7.50% interest: Invest around ₹16 lakh
- 8.00% interest: Invest around ₹15 lakh
Why Non-Cumulative FDs Are Ideal for Monthly Income
In a non-cumulative FD, the bank pays interest at regular intervals, monthly, quarterly, or annually. This makes it an excellent choice for those who want a steady income without touching the principal amount. Retirees often use this option to meet routine expenses while keeping their savings safe.
Where Can You Get Higher FD Rates?
Small finance banks generally offer higher interest rates than large public and private sector banks. However, investors should always check the bank’s credibility and deposit insurance coverage before investing. Senior citizens usually receive an additional interest benefit of up to 0.50% over regular FD rates, which helps them generate better monthly income with a lower investment.
Tax Rules on FD Interest
The interest earned from FDs is fully taxable under the head “Income from Other Sources.” It is added to your total income and taxed according to your income tax slab. Tax Benefits Available
Under the old tax regime, senior citizens can claim a deduction of up to ₹50,000 on interest income under Section 80TTB.You may also like
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A 5-year tax-saving FD qualifies for deduction of up to ₹1.5 lakh under Section 80C.
When Does the Bank Deduct TDS?
Banks deduct Tax Deducted at Source (TDS) if your annual FD interest crosses the prescribed limit.
For FY 2025-26:
General investors: TDS applies if interest exceeds ₹50,000 Senior citizens: TDS applies if interest exceeds ₹1 lakh
If PAN is provided, TDS is generally deducted at 10%.
How to Avoid TDS
If your total taxable income is below the basic exemption limit, you can submit the appropriate declaration form to the bank to prevent TDS deduction.Form 15G: For eligible individuals below 60 years
Form 15H: For eligible senior citizens
To earn ₹10,000 per month from an FD, you will need to invest between ₹15 lakh and ₹17.14 lakh, depending on the interest rate. For those seeking a safe and reliable source of regular income, especially after retirement, non-cumulative FDs remain a simple and effective solution.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. Please consult a certified financial advisor before making any decisions. NewsPoint is not responsible for any gains or losses arising from this information.
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