Monthly Interest Payout for a Fixed Deposit of ₹16 Lakhs

Deposit Amount

Interest Rate

Tenure

Months

Interest Payout

At Maturity
At Maturity
Monthly
Quaterly
Half Yearly
Yearly

Investment Amount

Interest Rate

Total Interest Amount

Total Payout (Principal + Interest)

Get Returns up to 9.40%* p.a.

Investing ₹16 Lakhs in a fixed deposit provides a reliable way to earn regular monthly payouts while keeping your capital secure. Compare interest rates from various banks and Non-banking Financial Companies (NBFCs). Choose the most favourable terms to maximise returns and meet your financial goals, whether short-term or long-term.

Monthly Interest Payout on a Fixed Deposit of ₹16 Lakhs

The monthly returns you earn on an FD depend on the applicable interest rate. Check out the following table for interest earned per month on ₹16 Lakhs invested in fixed deposits for 5 years at different interest rates.

Deposit Amount

Interest Rate (p.a.)

Monthly Interest Payout

₹16 Lakhs

6.00%

₹8,000

₹16 Lakhs

6.50%

₹8,667

₹16 Lakhs

7.00%

₹9,333

₹16 Lakhs

7.50%

₹10,000

₹16 Lakhs

8.00%

₹10,667

₹16 Lakhs

8.50%

₹11,333

₹16 Lakhs

9.00%

₹12,000

₹16 Lakhs

9.50%

₹12,667

₹16 Lakhs

10.00%

₹13,333

Note: These values are indicative and may vary based on the invested amount and chosen tenure.

Interest on an FD of ₹16 Lakhs Offered by Banks and NBFCs

Check out the table below for interest on an FD of ₹16 Lakhs for 5 years from different banks and NBFCs.

Bank/NBFC/HFC

Non-senior Citizens (p.a.)

Monthly Interest Payout

Senior Citizens (p.a.)

Monthly Interest Payout

Bajaj Finance Ltd. 

7.81%

₹10,413

8.05%

₹10,733

PNB Housing Finance Ltd. 

7.35%

₹9,800

7.55%

₹10,066

Mahindra Finance Ltd

7.55%

₹10,066

7.80%

₹10,400

LIC Housing Finance

7.50%

₹10,000

7.75%

₹10,333

Shriram Finance

8.47%

₹11,293

8.97%

₹11,960

ICICI Bank 

7.00%

₹9,333

7.60%

₹10,133

HDFC Bank 

7.00%

₹9,333

7.50%

₹10,000

IDFC First Bank 

7.00%

₹9,333

7.50%

₹10,000

Axis Bank 

7.00%

₹9,333

7.75%

₹10,333

IndusInd Bank 

7.25%

₹9,666

7.75%

₹10,333

YES Bank

7.25%

₹9,666

8.00%

₹10,666

Jana Small Finance Bank 

7.25%

₹9,666

7.75%

₹10,333

Kotak Mahindra Bank

6.20%

₹8,266

6.70%

₹8,933

SBI

6.50%

₹8,666

7.50%

₹10,000

AU Small Finance Bank

7.21%

₹9,613

7.70%

₹10,266

Ujjivan Small Finance Bank

7.20%

₹9,600

7.70%

₹10,266

Note: The above-mentioned rates are subject to change at the bank or NBFCs discretion.

Interest Payout on ₹16 Lakhs FD Based on Tenure

Here’s a table outlining the maturity amounts for a ₹16 Lakh fixed deposit at an interest rate of 7.25% p.a., with details provided for various tenures:

Tenure

Yearly Payout

1 Year (12 Months)

₹17,16,000

2 Years (24 Months)

₹18,40,410

3 Years (36 Months)

₹19,73,840

4 Years (48 Months)

₹21,16,943

5 Years (60 Months)

₹22,70,421

Note: The above table is for illustrative purposes only. Your actual returns may vary depending on the bank or NBFC’s policies.

TDS on a Fixed Deposit of ₹16 Lakhs

Understand the tax implications if you are planning to invest such a sizable amount in an FD. The following are some of the crucial regulations.

  • If your annual interest income is more than ₹40,000, the bank or NBFC will deduct Tax Deducted at Source (TDS) at 10%

  • Senior citizens can enjoy a higher exemption limit of ₹50,000 for taxation on FD interest

  • A standard rate of TDS at 10% will be applicable if you have submitted your PAN details

  • If you have not furnished your PAN card, the bank or NBFC will deduct TDS at a higher rate of 20% 

How to Calculate Interest on an FD of ₹16 Lakhs

To get an estimate of the amount you can earn as monthly interest, utilise the facility of calculator provided above. Follow these steps to compute monthly interest on an FD of ₹16 Lakhs.

  1. Enter the investment amount, tenure, and interest rate
  2. Select the ‘Monthly’ option under the ‘Interest Payout’ category
  3. You can check the estimate of total and monthly interest payouts

Maturity Amount Calculation Example

Let’s assume you invested ₹16 Lakhs in a fixed deposit with an interest rate of 7.25% p.a. for a tenure of 4 years (48 months). To calculate the monthly interest, follow this method:

  • Monthly Interest Earned = Principal × Interest Rate / 12

  • Monthly Interest Earned = ₹16,00,000 × 7.25% / 12

  • Monthly Interest Earned = ₹1,16,000 / 12

  • Monthly Interest Earned = ₹9,666.67

 

Thus, the monthly interest earned on an FD of ₹16 Lakhs at 7.25% p.a. would be ₹9,666.67

 

Total Interest Earned Upon Maturity

  • Total Interest = Monthly Interest × Number of Months

  • Total Interest = ₹9,666.67 × 48

  • Total Interest = ₹4,64,000

 

Over the 4-year tenure, the total interest earned would be ₹4,64,000, with a monthly payout of ₹9,666.67

Penalty for Premature Withdrawal from a Fixed Deposit of ₹16 Lakhs

Withdrawing funds from a fixed deposit before maturity usually results in reduced returns. Banks and NBFCs offer lower interest rates on the withdrawn amount and may also charge a penalty, further decreasing your overall earnings. These deductions can significantly affect the total returns on your FD.

FD Premature Withdrawal Example

Let’s say you invested ₹16 Lakhs in a fixed deposit for 4 years at an interest rate of 7.25% p.a., but you decide to withdraw it after 1 year. The applicable interest rate for that period would drop to 6.25% p.a. After factoring in a 1% penalty for early withdrawal, the final interest rate would be reduced to 5.25% p.a., leading to lower-than-expected returns.

Parameter

Details

Principal Amount Invested 

₹16,00,000

Maturity After 3 Year

₹19,08,000

Interest Rate at the Time of Booking

7.25% p.a.

Effective Interest Rate for 1 Year Tenure

6.25% p.a.

Premature Withdrawal Penalty Rate

1% p.a.

Final Interest Rate 

5.25% p.a.

Final Amount Payable

₹16,84,000

Note: The figures above are for illustration purposes only. The actual penalty charges may vary depending on the bank or NBFC’s policies.

Disclaimer

The information provided by BFDL is related to the rates provided by Banks and Deposit taking NBFCs and under no circumstances is intended to be source of advice or recommending any financial investment advice or endorsement of any sort. BFDL disclaims any responsibility or liability regarding inaccuracies, omissions, mistakes etc. as well as offers and the use of such information set out is entirely at the User’s own risk and User should exercise due care prior taking of any decision, on the basis of information mentioned hereinabove. Display of such Intellectual Property along with the related product information does not imply BFDL’s partnership with the owner of the Intellectual Property of such products and is solely for the purpose of information, unless otherwise provided.

Frequently Asked Questions

Do I have to pay taxes on the interest on my FD of ₹16 Lakhs?

The interest you earn on an FD is taxable when it crosses a certain threshold. This limit is ₹40,000 for a non-senior citizen and ₹50,000 in the case of a senior citizen. It is taxed based on your income tax slab rates. 

How much interest will I get for an FD of ₹16 Lakhs?

The interest you earn depends on the tenor you choose and the applicable FD rate. Say you book an FD of ₹16 Lakhs at an interest rate of 9% p.a. for a tenor of 5 years. With a monthly payout option, your interest income will be around ₹12,000 a month. 

What is the paperwork I need to book an FD of ₹16 Lakhs?

To book an FD of ₹16 Lakhs, you will need KYC documents along with your latest passport-size photograph. Always check the list of documents needed before submitting your FD application form.

Is there a penalty for withdrawing an FD of ₹16 Lakhs before maturity?

Yes, most issuers charge a penalty for withdrawing your FD before maturity. The exact amount depends on the issuer and the remaining tenor. While some charge a penalty of 0.5%, others may levy up to 1%.

Can I add more money to my fixed deposit of ₹16 Lakhs during the tenor?

No, fixed deposits function like a one-time investment locked in for a chosen period. While you cannot add more money during the tenor, you will earn interest on the invested amount until the maturity date. You can continue to save by booking a fresh fixed deposit.

What happens if I do not renew my FD of ₹16 Lakhs after maturity?

Most issuers will automatically renew your FD for another term, often with the same duration as your original tenor. The prevailing interest rate will apply to this FD. Other issuers may return the earnings to the bank account linked to your FD account. Check with your issuer about their specific policy for non-renewed FDs.

How can I calculate interest on an FD of ₹16 Lakhs?

There are two main ways to calculate the interest on your FD. The first option is to calculate it manually using the simple or compound interest formulas. Another option is to use an FD calculator and compute the FD interest earnings instantly. Simply provide the tenor, deposit amount, and FD rate to get the results within seconds.

What factors influence the monthly interest earned on an FD of ₹16 Lakhs?

The essential factors affecting your monthly interest earnings include the interest rate, the tenor, and the payout frequency.

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