Monthly Interest on a ₹25 Lakh Fixed Deposit

If you have chosen fixed deposits, you can opt to receive the interest you earn at periodic intervals. Let us make you understand this with an example. For a tenure of 5 years, at 8% p.a interest rate, the monthly interest on a ₹25 Lakh FD will be ₹16,666 with a total interest earned of ₹11.73 Lakhs. 

 

Likewise, on opting a tenure of 2 years for the same FD amount at 8% p.a. will generate a monthly interest payout of ₹16,666, but the total interest earned will be ₹4.16 Lakhs. As shown, the interest earned per annum will come down when you choose a shorter timeline.

Below is a table to help you visualize the ₹25 Lakh FD interest per month for a tenure of 5 years. This will help you understand how different interest rates impact your return. 

Note: The monthly payouts mentioned above are indicative. Your actual returns depend on the bank or NBFCs policies.

The monthly interest on ₹25 Lakhs fixed deposit depends on the interest rate and the chosen tenure. Here’s a table outlining the returns based on the interest rates for both regular and senior citizens from some leading banks and NBFCs in India for 2025, assuming a 5-year tenure.

Note: The above-mentioned rates are as of June 2025 and subject to change at the bank or NBFCs’ discretion.

Here’s a table detailing the maturity amounts for a ₹25 Lakh FD interest per year at an interest rate of 7.25% p.a., with a breakdown across different tenures:

Note: The above-mentioned rates are subject to change at the bank or NBFC's discretion

The financial institution is liable to deduct TDS if the annual interest amount crosses the limit. Here are different conditions for TDS on your interest on a ₹25 Lakh fixed deposit.

• No TDS will apply if the interest does not exceed ₹40,000

• For senior citizens, the interest amount limit is extended to ₹50,000

• TDS will be deducted 10% if you have provided PAN

• If you have not provided PAN, TDS will be deducted at 20%

To calculate your ₹25 Lakh fixed deposit interest per month, simply follow these steps:

1. Input the deposit amount, tenure, and applicable interest rate

2. Select the 'Monthly' option under the 'Interest Payout' section

3. The calculator will display an estimate of your total interest earnings and monthly payouts

Maturity Amount Calculation Example

Here’s how you can calculate the monthly interest on a ₹25 Lakh FD and maturity amount at an interest rate of 8% p.a. for 3 years:

• Monthly Interest = Principal × Interest Rate / 12

• Monthly Interest = ₹25,00,000 × 8% / 12

• Monthly Interest = ₹25,00,000 × 0.08 / 12

• Monthly Interest = ₹16,666.67

 

The ₹25 Lakh FD monthly interest earned would be ₹16,666.67.

 

Interest Earned Upon Maturity

• Total Interest = Monthly Interest × Number of Months

• Total Interest = ₹16,666.67 × 36

• Total Interest = ₹6,00,000

 

The total interest accumulated over the 3-year period would be ₹6,00,000

 

Note: Check the formula used by the bank or NBFC to get an accurate estimate. 

Some banks and NBFCs charge a penalty for early withdrawal of the FD. While the exact penalty may vary across financial institutions, it’s important to check this before investing. Typically, if you withdraw early, the interest rate is reduced, and some banks or NBFCs may also deduct a percentage from your interest, resulting in lower returns.

FD Premature Withdrawal Example

If you invest ₹25 Lakhs in an FD for 4 years at an interest rate of 7.50% p.a. but withdraw prematurely after 1 year, the applicable rate drops to 6.50% p.a. After applying a 1% penalty, the final interest rate is reduced to 5.50% p.a., resulting in lower returns.

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