Booking a fixed deposit of ₹16 Lakhs allows you to grow your capital and get assured returns. By choosing the best interest rates and tenor, you could enhance your profitability. Monthly returns could aid in managing recurring obligations, depending on the amount invested. 

 

You could get a monthly payout of up to ₹10,667 with an FD of ₹16 Lakhs for 5 years at an interest rate of 8% p.a. The higher the interest you choose, the better returns you earn. Consider these factors before selecting an FD and maximise your returns every month.

 

When finalising your fixed deposit investment, compare interest rates across issuers. Remember, the interest per month on an FD of ₹16 Lakhs will vary depending on the tenor and applicable FD rate.

Monthly Interest Income for an FD of ₹16 Lakhs

See the table to understand how the monthly interest income you earn on a fixed deposit of ₹16 Lakhs will vary across different interest rates. Note that these values have been calculated for a tenor of 5 years (60 months). 

Deposit Amount

Interest Rate (p.a.)

Monthly Interest Payout

₹16 Lakhs

6.00%

₹8,000

₹16 Lakhs

6.50%

₹8,666

₹16 Lakhs

7.00%

₹9,333

₹16 Lakhs

7.50%

₹10,000

₹16 Lakhs

8.00%

₹10,666

₹16 Lakhs

8.50%

₹11,333

₹16 Lakhs

9.00%

₹12,000

₹16 Lakhs

9.50%

₹12,666

₹16 Lakhs

10.00%

₹13,333

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

Monthly Interest Payout for an FD of ₹16 Lakhs Offered by NBFCs and Banks

Here is an overview of the interest per month on an FD of ₹16 Lakhs for a tenor of 5 years across issuers. FD rates differ for regular and senior investors, and the table below clearly shows the resulting increase in earnings for seniors.

Bank/NBFC/HFC

Non-senior Citizen (p.a.)

Monthly Interest Payout

Senior Citizen (p.a.)

Monthly Interest Payout

Bajaj Finance Ltd.

8.10%

₹10,413

8.35%

₹10,733

PNB Housing Finance Ltd. 

7.65%

₹9,853

7.85%

₹10,120

Mahindra Finance Ltd. 

8.10%

₹10,000

8.35%

₹10,333

LIC Housing Finance Ltd

7.75%

₹10,000

8.00%

₹10,333

Shriram Finance

8.47%

₹11,293

8.97%

₹11,960

ICICI Bank 

7.00%

₹9,333

7.50%

₹10,000

HDFC Bank 

7.00%

₹9,333

7.50%

₹10,000

IDFC First Bank 

7.00%

₹9,333

7.50%

₹10,000

Axis Bank 

7.10%

₹9,333

7.60%

₹10,333

IndusInd Bank 

7.25%

₹9,666

7.75%

₹10,333

YES Bank 

7.25%

₹9,666

8.00%

₹10,667

Jana Small Finance Bank 

7.25%

₹9,666

7.75%

₹10,333

Ujjivan Small Finance Bank

7.20%

₹9,600

7.70%

₹10,267

Kotak Mahindra Bank

6.20%

₹8,266

6.70%

₹8933

SBI

6.50%

₹8,666

7.50%

₹10,000

AU Small Finance Bank

7.25%

₹9,613

7.75%

₹10,267

Note: The above interest rates are as of April 2024 and are subject to change at the issuer’s discretion.

 

When you choose to invest a sum like ₹16 Lakhs in a fixed deposit, use the FD calculator to forecast your returns. This digital tool will quickly compute your estimated returns and help you choose the most suitable plan. Get started with your investment journey by booking an FD on Bajaj Markets today. 

Disclaimer

The information provided by BFDL is related to the rates provided by Banks and Deposit taking NBFCs as available from public domain and under no circumstances is intended to be source of advice or recommendation of 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 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 any 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 by BFDL.

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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