In an era of rising inflation, having a secondary source of income is no longer a luxury but a necessity. Many people aspire to invest their hard-earned savings in a way that generates a steady monthly cash flow. If your goal is to earn a guaranteed monthly interest of ₹50,000, you need to understand the correlation between the principal amount and the prevailing bank interest rates.

Currently, major Indian banks are offering interest rates ranging from 7% to 7.5% for general citizens, while senior citizens enjoy a slight premium, often up to 8%. To earn ₹50,000 per month (which totals ₹6 lakh annually), with an interest rate of 7.5%, you would need to create a Fixed Deposit (FD) of approximately ₹80 Lakhs. If the interest rate drops to 7%, the required principal would increase to around ₹85.72 Lakhs. For senior citizens at an 8% rate, a deposit of ₹75 Lakhs would be sufficient to hit the target.

However, investors must account for Tax Deducted at Source (TDS). Since interest income is taxable based on your income slab, the actual “in-hand” amount might be lower than ₹50,000. To ensure you receive exactly 50k after taxes, you might need to park a slightly higher amount in the bank. While options like Mutual Fund SWPs (Systematic Withdrawal Plans) offer higher potential returns, Fixed Deposits remain the safest bet for those looking for zero-risk monthly earnings.