While investing in FDs, you will be given the choice of selecting an interest payout frequency, between monthly, quarterly, annual, and at maturity. If you opt for the monthly option, then here’s everything you need to know.
Opting for this can help you earn interest regularly and will be useful for many of your regular day-to-day expenses. If you deposit a sum of ₹3 Lakhs for a tenor of 5 years at 7.5%, then you can earn over ₹1,800 each month.
Read on to find out about the applicable interest rates offered by various banks and NBFCs in the following sections.
The table below indicates the monthly interest payout on a ₹3 Lakh FD you could earn across different banks and NBFCs 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% |
₹ 2,013 |
8.30% |
₹ 2,075 |
PNB Housing Finance Ltd. |
7.39% |
₹ 1,848 |
7.69% |
₹ 1,923 |
Mahindra Finance Ltd. |
8.05% |
₹ 2,013 |
8.30% |
₹ 2,075 |
LIC Housing Finance |
7.75% |
₹ 1,938 |
8.00% |
₹ 2,000 |
Shriram Finance |
8.27% |
₹ 2,068 |
8.77% |
₹ 2,193 |
ICICI Bank |
7.00% |
₹ 1,750 |
7.50% |
₹ 1,875 |
HDFC Bank |
7.00% |
₹ 1,750 |
7.50% |
₹ 1,875 |
IDFC First Bank |
7.00% |
₹ 1,750 |
7.50% |
₹ 1,875 |
Axis Bank |
7.00% |
₹ 1,750 |
7.75% |
₹ 1,938 |
IndusInd Bank |
7.25% |
₹ 1,813 |
8.00% |
₹ 2,000 |
YES Bank |
7.25% |
₹ 1,813 |
8.00% |
₹ 2,000 |
Jana Small Finance Bank |
7.25% |
₹ 1,813 |
7.75% |
₹ 1,938 |
Kotak Mahindra Bank |
6.20% |
₹ 1,550 |
6.25% |
₹ 1,563 |
SBI |
6.50% |
₹ 1,625 |
7.50% |
₹ 1,875 |
AU Small Finance Bank |
7.25% |
₹ 1,813 |
7.75% |
₹ 1,938 |
Ujjivan Small Finance Bank |
7.20% |
₹ 1,800 |
7.70% |
₹ 1,925 |
*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 ₹3 Lakh fixed deposit -
Deposit Amount |
Interest Rate (p.a.) |
Monthly Interest Payout |
₹3 Lakh |
3.00% |
₹ 750 |
₹3 Lakh |
3.50% |
₹ 875 |
₹3 Lakh |
4.00% |
₹ 1,000 |
₹3 Lakh |
4.50% |
₹ 1,125 |
₹3 Lakh |
5.00% |
₹ 1,250 |
₹3 Lakh |
5.50% |
₹ 1,375 |
₹3 Lakh |
6.00% |
₹ 1,500 |
₹3 Lakh |
6.50% |
₹ 1,625 |
₹3 Lakh |
7.00% |
₹ 1,750 |
₹3 Lakh |
7.50% |
₹ 1,875 |
₹3 Lakh |
8.00% |
₹ 2,000 |
₹3 Lakh |
8.50% |
₹ 2,125 |
₹3 Lakh |
9.00% |
₹ 2,250 |
₹3 Lakh |
9.50% |
₹ 2,375 |
₹3 Lakh |
10.00% |
₹ 2,500 |
With this understanding of your estimated returns on a ₹3 Lakh FD, you can now make an informed decision about choosing your preferred issuer. Select from multiple FD partners offering competitive interest rates on Bajaj Markets, and get started with booking a fixed deposit.
You can also make use of the FD interest calculator to get an idea of the potential returns on your FD investment.
Check Monthly Interest Rate on your Fixed Deposits |
||
As per Section 194A of the Income Tax Act, you will have to pay 10% TDS on an annual interest income of over ₹40,000. As we have seen, the annual interest on ₹3 Lakhs fixed deposit does not exceed this threshold and hence, you will not have to pay any taxes.
To book an FD, you will need to fulfil certain requirements set out by the issuer bank/NBFC. Most banks/NBFCs require you to be an Indian citizen above 18 years of age to invest.
To open an FD account, you will need to submit your PAN card, KYC documents, proof of identity, and photographs to the issuer bank.
The amount of monthly interest for a ₹3 Lakh fixed deposit that you can earn depends on the lender and tenor you choose.
For instance, take that you invest in a ₹3 Lakh fixed deposit from Bank A at an interest rate of 7.15% p.a. for a tenor of 5 years. The monthly interest for a ₹3 Lakh fixed deposit would then be ₹1,787.