₹10 Lakh Fixed Deposit (FD)

When you're considering where to invest a substantial amount like ₹10 lakh fixed deposit, Airtel Finance offers compelling advantages that traditional banking channels often can't match. The platform simplifies your investment journey through its fully digital process, allowing you to open and manage your deposit directly from the Airtel Thanks App without the hassle of visiting bank branches or handling extensive paperwork.

Airtel Finance partners with established and regulated financial institutions, including Bajaj Finserv, Suryoday, Utkarsh Small Finance Bank, and South Indian Bank, ensuring your investment benefits from their credibility whilst enjoying potentially competitive rates.

Your ₹10 lakh FD remains fully protected under the Deposit Insurance and Credit Guarantee Corporation (DICGC) scheme up to ₹5 lakh per depositor per bank. Additionally, Airtel Finance makes fixed deposits accessible to customers across urban and rural areas, promoting financial inclusion whilst maintaining the highest standards of security and transparency.

A ₹10 lakh fixed deposit represents a significant investment that comes with substantial benefits designed to protect and grow your wealth. The primary advantage lies in principal safety—your entire investment amount is guaranteed.

Key benefits include:

• Guaranteed returns with interest for ₹10 lakh fixed deposit rates reaching up to 8.75% per annum.
  • Flexible tenure options ranging from 7 days to 10 years, allowing you to align your investment with financial goals,
  • Premature withdrawal facility available after 7 days, providing liquidity when needed.
  • No market volatility risk—your returns remain unaffected by economic fluctuations.
  • Tax benefits under Section 80C for tax-saving FDs (though with a 5-year lock-in).

Airtel Finance's partner banks offer competitive ₹10 lakh FD interest rates that can significantly enhance your returns compared to traditional savings accounts. The rates vary across different partner institutions, with some offering enhanced rates for women and senior citizens.

Current interest rate ranges:

These rates are particularly attractive when compared to major commercial banks, which typically offer 5.5% to 7% for similar tenures.

Senior citizens (60 years and above) and women depositors often receive preferential rates, with additional interest ranging from 0.10% to 0.50% per annum. The exact rate depends on your chosen tenure, with longer-term deposits generally offering higher returns.

Understanding your ₹10 lakh FD interest per month helps you plan your finances effectively. Most Airtel Finance partner banks offer flexible payout options, including monthly, quarterly, half-yearly, annual, or maturity-based interest payments.

Monthly interest calculation examples:

For monthly payouts, the interest for a ₹10 lakh fixed deposit is calculated using the simple interest method on the principal amount. However, remember that choosing monthly payouts typically results in slightly lower effective returns compared to cumulative options, as you lose the benefit of compound interest.

You can also choose to reinvest these monthly payouts into additional FDs or other investment instruments to maximise your overall returns. Tax implications apply to interest earnings above ₹40,000 per annum (₹50,000 for senior citizens), so factor this into your planning.

Selecting the appropriate ₹10 lakh fixed deposit type depends on your financial goals, risk appetite, and liquidity requirements. Airtel Finance's partner banks offer various FD variants, each designed for specific investor profiles and objectives.

FD types to consider:

• Regular FD: Standard option with flexible tenure and competitive rates, ideal for general wealth preservation
  • Tax-saving FD: 5-year lock-in period with Section 80C benefits up to ₹1.5 lakh, suitable for tax planning
  • Senior citizen FD: Enhanced rates for investors aged 60+, perfect for retirement income
  • Cumulative FD: Interest compounds quarterly, maximising returns for long-term investors
  • Non-cumulative FD: Regular interest payouts for those needing steady income
  • Flexi FD: Allows partial withdrawals whilst maintaining higher interest rates on the remaining balance

The interest for a ₹10 lakh fixed deposit varies based on the bank you choose, the tenure you select, and current market conditions.

Let's examine some realistic scenarios for your ₹10 lakh FD interest:

Senior citizens typically receive an additional 0.25% to 0.75% above standard rates, which can significantly boost their interest on a ₹10 lakh FD. Small finance banks often offer competitive rates, sometimes reaching up to 8.80% per annum for certain tenures.

The ₹10 lakh FD interest per month would depend on your chosen compounding frequency. With quarterly compounding at 7% annually, you'd earn approximately ₹17,500 monthly on average over 5 years.

Understanding how to calculate your ₹10 lakh fixed deposit returns empowers you to make informed investment decisions.

For simple interest calculation, use this formula: Interest = (Principal × Rate × Time) ÷ 100.

However, compound interest provides better returns, as it calculates interest on both your principal and accumulated interest from previous periods.

The compound interest formula is: A = P (1 + r/n)^(nt), where:
• A = Future value including interest
• P = Principal amount (₹10 lakh)
• r = Annual interest rate (as decimal)
• n = Compounding frequency per year
• t = Investment tenure in years

Using an FD calculator simplifies the complex mathematics involved in determining your ₹10 lakh FD interest across different scenarios. These digital tools instantly compute your returns based on varying interest rates, tenures, and compounding frequencies.

Online calculators allow you to experiment with different parameters:
• Principal amount (₹10 lakh in your case)
• Interest rate (input current market rates)
• Tenure (from 7 days to 10 years)
• Compounding frequency (quarterly/annually)

Most calculators provide detailed breakdowns showing your ₹10 lakh FD interest per month, quarterly earnings, and total maturity amount. They also display year-wise growth, helping you visualise how compound interest accelerates your wealth creation over time.

Opening a ₹10 lakh fixed deposit requires meeting specific eligibility requirements that vary slightly between banks.

Basic Eligibility Requirements:

• Age: Typically 18-80 years for regular FDs
  • Residency: Indian residents (NRIs have separate FD schemes)
  • Minimum Deposit: Most banks accept FDs starting from ₹1,000, so your ₹10 lakh deposit easily meets this requirement
  • Documentation: Valid KYC documents including PAN card and Aadhaar

Special Categories:

Senior citizens (60+ years) often receive preferential interest rates and may have relaxed documentation requirements. Minors can open FDs through guardians, while joint FDs allow multiple account holders.

Understanding the tax on FD interest income is crucial when investing in a ₹10 lakh fixed deposit, as the interest earned is subject to taxation under Indian income tax laws.

Tax Deducted at Source (TDS):

• Banks deduct TDS at 10% if your annual FD interest exceeds ₹40,000 (₹50,000 for senior citizens)
  • With a ₹10 lakh FD interest per month scenario, you'll likely cross this threshold
  • TDS applies to interest earned, not the principal amount

Income Tax Implications:

The interest for a ₹10 lakh fixed deposit gets added to your total taxable income and taxed according to your income tax slab:

Yes, you can withdraw your ₹10 lakh fixed deposit before maturity, though this premature withdrawal comes with certain conditions and penalties that affect your interest.

Premature Withdrawal Rules:

• Minimum Lock-in: Most banks require FDs to be completed in 7 days before allowing premature withdrawal
  • Penalty Charges: Banks typically deduct 0.5% to 1% from the applicable interest rate
  • Partial Withdrawal: Some banks allow partial premature withdrawal, though this feature isn't universally available

Impact on Returns:

When you withdraw your ₹10 lakh FD interest early, banks recalculate your interest based on:

• The actual period your money remained deposited
  • Reduced interest rate after penalty deduction
  • Applicable TDS on the revised interest amount

Opening an Airtel Finance fixed deposit offers a streamlined digital experience with competitive returns on your ₹10 lakh fixed deposit investment.

Simple Application Process:

• Download: Install the Airtel Thanks app on your smartphone. (Or you can visit the Airtel Finance website.)
  • Registration: Complete your profile using your Airtel mobile number
  • KYC Verification: Upload PAN and Aadhaar documents for instant verification
  • Amount Selection: Choose ₹10 lakh as your deposit amount and preferred tenure
  • Partner Bank Selection: Select from Airtel Finance's partner banks offering the best ₹10 lakh FD interest rates

Key Benefits of Airtel Finance Fixed Deposit:

• High Returns: Earn up to 8.75% per annum on your interest for a ₹10 lakh fixed deposit
  • Digital Process: Complete application within minutes without visiting any branch
  • Flexible Tenure: Choose from various tenure options to maximise your ₹10 lakh FD interest per month
  • DICGC Insurance: Your deposit remains protected up to ₹5 lakh under deposit insurance

The entire process takes just a few minutes, and your FD becomes active immediately upon successful payment transfer, allowing you to start earning interest on ₹10 lakh FD right away