What is the interest rate for a ₹10 crore fixed deposit?

The interest rate for a ₹10 crore fixed deposit (FD) in India can vary significantly depending on several factors: the specific bank or financial institution, the tenure of the deposit, and whether you are a general customer or a senior citizen. For such a high deposit amount, often categorised as a bulk deposit, banks may offer slightly different interest rates compared to smaller retail deposits.

To calculate the interest on a ₹10 crore Fixed Deposit (FD) at a 7% annual interest rate for 3 years, let's consider both simple and compound interest.

Scenario 1: Simple Interest

• Principal (P): ₹10,00,00,000
• Rate of Interest (R): 7% per annum (0.07)
• Time (T): 3 years

Calculation: Simple Interest (SI) = P × R × T SI = ₹10,00,00,000 × 0.07 × 3 SI = ₹2,10,00,000

Maturity Amount: Amount = Principal + Simple Interest Amount = ₹10,00,00,000 + ₹2,10,00,000 = ₹12,10,00,000

Scenario 2: Compound Interest (Annual Compounding)

• Principal (P): ₹10,00,00,000
• Rate of Interest (R): 7% per annum (0.07)
• Time (T): 3 years
• Compounding Frequency (n): 1 (annually)

Calculation: Amount (A) = P (1 + R/n)^(nT) A = ₹10,00,00,000 (1 + 0.07/1)^(1*3) A = ₹10,00,00,000 (1.07)^3 A = ₹10,00,00,000 × 1.225043 A ≈ ₹12,25,04,300

Compound Interest (CI): CI = Amount - Principal CI = ₹12,25,04,300 - ₹10,00,00,000 = ₹2,25,04,300