If you have chosen fixed deposits as your preferred investment tool for parking funds, then there are several benefits that you can take advantage of. For instance, you can select your preferred interest payout option, between monthly, quarterly, half-yearly, annually, and at maturity.
By opting for a monthly interest payout cycle, you can receive returns on a monthly basis that can help meet some of your fixed financial obligations. Moreover, you can enjoy other benefits such as special interest rates for senior citizens, loans against your FDs, auto-renewal facility (if applicable), and more.
Read on to learn more about the applicable interest rates offered by various banks and financial institutions below.
The table below indicates the monthly interest payout on a ₹25 Lakh FD you could earn across different banks and financial institutions for a tenor of 5 years:
Bank/NBFC/HFC |
Non-Senior Citizen (p.a.) |
Monthly Interest Payout |
Senior Citizen (p.a.) |
Monthly Interest Payout |
Bajaj Finance Ltd. |
8.05% |
₹ 16,771 |
8.30% |
₹ 17,292 |
PNB Housing Finance Ltd. |
7.39% |
₹ 15,396 |
7.69% |
₹ 16,021 |
Mahindra Finance Ltd. |
8.05% |
₹ 16,771 |
8.30% |
₹ 17,292 |
LIC Housing Finance |
7.75% |
₹ 16,146 |
8.00% |
₹ 16,667 |
Shriram Finance |
8.27% |
₹ 17,229 |
8.77% |
₹ 18,271 |
ICICI Bank |
7.00% |
₹ 14,583 |
7.50% |
₹ 15,625 |
HDFC Bank |
7.00% |
₹ 14,583 |
7.50% |
₹ 15,625 |
IDFC First Bank |
7.00% |
₹ 14,583 |
7.50% |
₹ 15,625 |
Axis Bank |
7.00% |
₹ 14,583 |
7.75% |
₹ 16,146 |
IndusInd Bank |
7.25% |
₹ 15,104 |
8.00% |
₹ 16,667 |
YES Bank |
7.25% |
₹ 15,104 |
8.00% |
₹ 16,667 |
Jana Small Finance Bank |
7.25% |
₹ 15,104 |
7.75% |
₹ 16,146 |
Kotak Mahindra Bank |
6.20% |
₹ 12,917 |
6.25% |
₹ 13,021 |
SBI |
6.50% |
₹ 13,542 |
7.50% |
₹ 15,625 |
AU Small Finance Bank |
7.25% |
₹ 15,104 |
7.75% |
₹ 16,146 |
Ujjivan Small Finance Bank |
7.20% |
₹ 15,000 |
7.70% |
₹ 16,042 |
*Disclaimer: The above-mentioned rates are effective as of 20 October 2023, and are subject to change at the issuer’s discretion.
Here is an estimate of the monthly interest payout you would receive on a ₹25 Lakh fixed deposit -
Deposit Amount |
Interest Rate (p.a.) |
Monthly Interest Payout |
₹25 Lakh |
3.00% |
₹ 6,250 |
₹25 Lakh |
3.50% |
₹ 7,292 |
₹25 Lakh |
4.00% |
₹ 8,333 |
₹25 Lakh |
4.50% |
₹ 9,375 |
₹25 Lakh |
5.00% |
₹ 10,417 |
₹25 Lakh |
5.50% |
₹ 11,458 |
₹25 Lakh |
6.00% |
₹ 12,500 |
₹25 Lakh |
6.50% |
₹ 13,542 |
₹25 Lakh |
7.00% |
₹ 14,583 |
₹25 Lakh |
7.50% |
₹ 15,625 |
₹25 Lakh |
8.00% |
₹ 16,667 |
₹25 Lakh |
8.50% |
₹ 17,708 |
₹25 Lakh |
9.00% |
₹ 18,750 |
₹25 Lakh |
9.50% |
₹ 19,792 |
₹25 Lakh |
10.00% |
₹ 20,833 |
With this better understanding of your potential returns, you can select your preferred issuer and get started with booking an FD. Choose between multiple FD issuers that offer competitive interest rates on Bajaj Markets.
You can also use the FD calculator to get an estimate of the returns on your fixed deposit investment.
Check the Monthly Interest Rate on Your Fixed Deposits |
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Yes, according to the Income Tax Act, if your interest income exceeds ₹40,000 for a financial year, a TDS of 10% will be deducted. However, as a senior investor, your TDS is applied if your interest income exceeds ₹50,000 in a year.
To earn a regular interest income, you must book an FD by submitting your KYC documents and the latest passport-size photographs. Ensure you opt for a monthly payout option when opening an FD account so that you receive monthly interest income regularly.
Your monthly interest income depends on the applicable interest rate offered by the NBFC or bank. This also varies according to the FD type and the tenor you choose.
Yes, you can calculate the interest using an online FD calculator. The calculator uses simple and compound interest formulas to compute your monthly interest earnings instantly. Simply input the investment amount, tenor and interest rate to assess your earnings.