What is the return per month if I invest 1000000 in fixed deposit?What is the govt tax and interest?



I don’t have any other source of income and have only planned to live on the interest ?

What is the return per month if I invest 1000000 in fixed deposit?What is the govt tax and interest?
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5 Replies to “What is the return per month if I invest 1000000 in fixed deposit?What is the govt tax and interest?”

  1. The interest on a five year fixed deposit is @9% per annum. This means annual return is Rs 90000 and per month it is Rs 7500.

    If you have no other income, other than this interest, then there is no tax liability. You can declare no tax liability in a form (15G) prescribed by the Income tax Act to the bank and based on this they will not deduct tax.


  2. Normaly 7to 8% p.a. it comes around 5,800/ to 6600/- in banks, LIC Pension scheme, and post office PPF Schemes. For senior citizens get more 1/2 %. You give proper tax relief forms (Form 15 G) to not deduct TDS. unless you lose some % of income in TDS.


  3. U Can deposit your money in special fixed deposit scheme in which u’ll be getting interest either monthly,quarterly,half-yly or yearly as per rules of the bank in which u r investing and u can fill form 15 G and also submit PAN Card’s copy alongwith it. If ur sr.Citizen u’ll be getting benefit of both Tax and Interest from the bank on ur investment.So no tax liability u’ll face. and around 6-7thousand u’ll be get monthly which u can again deposit in PPF a/c in which there is limit of 1 lac which is tax exempted. Secondly, u can also bifurgate ur investment in NSC,PPF also so that the ratio of Interest gets decreased.


  4. Existing rate of returns are as follows
    1. Nationalised bank – Max. 9%
    2. Co-operative banks- Max.10.5%
    3. Company deposit – Max. 11.5%
    Now if you invest @9% , then you will get Rs7500 per month. You need not pay anything as income tax as your income is below 2 lacs.
    You may increase your returns by investing your money in combination of above avenues.






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