Can I invest ₹50 lakhs in an FD?

Yes, you can invest ₹50 lakhs in fixed deposits (FDs). However, here are some key factors to consider:

1. Interest rates: Interest rates on Fixed Deposits vary significantly between different financial institutions and depend on the tenure and depositor category. As of May 2025, most public and private sector banks offer rates between 3.5% and 7.15% per annum for regular citizens, with senior citizens typically receiving a slightly higher rate. Some NBFCs may offer higher rates, especially for longer tenures. Always compare the latest rates across institutions, as they are subject to change and may differ based on the amount and tenure of your deposit.
2. Tenure: The tenure of your FD plays an important role in the interest rate offered. Longer tenures (5 years or more) generally attract better rates. Be sure to check if any special FD schemes offer higher rates for larger investments, like ₹50 lakh. Institutions may have different policies when it comes to the best interest rates for specific tenures.
3. Taxation: There are income tax and TDS implications beyond a threshold annual interest earning that you must consider and account for.