Investing ₹4 Lakhs in a fixed deposit (FD) is a prudent and low-risk financial strategy to safeguard your capital while generating a reliable return. However, it's essential to understand that FD interest rates are subject to fluctuations over time.
Diligently monitoring the prevailing interest rates when making your investment decision can ensure optimised returns and financial security with your FD investment.
The table below indicates the monthly interest payout you could earn on a ₹4 Lakhs fixed deposit across different issuers 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% |
₹ |
8.30% |
₹2,767 |
PNB Housing Finance Ltd. |
7.65% |
₹2,550 |
7.95% |
₹2,650 |
Mahindra Finance Ltd. |
8.05% |
₹2,683 |
8.30% |
₹2,767 |
LIC Housing Finance Ltd |
7.50% |
₹2,500 |
7.75% |
₹2,583 |
Shriram Finance |
8.60% |
₹2,867 |
9.14% |
₹3,047 |
ICICI Bank |
7.00% |
₹2,333 |
7.50% |
₹2,500 |
HDFC Bank |
7.00% |
₹2,333 |
7.50% |
₹2,500 |
IDFC First Bank |
7.00% |
₹2,333 |
7.50% |
₹2,500 |
Axis Bank |
7.00% |
₹2,333 |
7.75% |
₹2,583 |
IndusInd Bank |
7.25% |
₹2,417 |
8.00% |
₹2,667 |
YES Bank |
7.25% |
₹2,417 |
8.00% |
₹2,667 |
Jana Small Finance Bank |
7.25% |
₹2,417 |
7.75% |
₹2,583 |
Ujjivan Small Finance Bank |
7.20% |
₹2,400 |
7.70% |
₹2,567 |
Kotak Mahindra Bank |
6.20% |
₹2,067 |
6.70% |
₹2,333 |
SBI |
6.50% |
₹2,167 |
7.50% |
₹2,500 |
AU Small Finance Bank |
7.25% |
₹2,417 |
7.75% |
₹2,583 |
Disclaimer: The above-mentioned rates are effective as of 15th November 2023 and are subject to change as per the issuer’s discretion.
The table below highlights the monthly interest income you could earn on an FD of ₹4 Lakhs at different interest rates:
Deposit Amount |
Interest Rate (p.a.) |
Monthly Interest Payout |
₹4 Lakhs |
6.00% |
₹2,000 |
₹4 Lakhs |
6.50% |
₹2,167 |
₹4 Lakhs |
7.00% |
₹2,333 |
₹4 Lakhs |
7.50% |
₹2,500 |
₹4 Lakhs |
8.00% |
₹2,667 |
₹4 Lakhs |
8.50% |
₹2,833 |
₹4 Lakhs |
9.00% |
₹3,000 |
₹4 Lakhs |
9.50% |
₹3,167 |
₹4 Lakhs |
10.00% |
₹3,333 |
You can also use the FD calculator to estimate the maturity amount you would receive on your fixed deposit investment. Input key details such as the principal amount, tenor, and the applicable interest rate. The FD calculator will compute the maturity amount, taking into account the compound interest earned during the investment period.
Check the Monthly Interest Rate on your Fixed Deposits |
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The taxation of FD income depends on how much interest you earn. As per 194A of the Income Tax Act, if your annual interest exceeds ₹40,000, the interest is subject to TDS. The limit extends up to ₹50,000 for senior citizen investors. As such, it is unlikely that you will exceed this yearly limit, at the current rates.
To invest in an FD of ₹ Lakhs, you need to be at least 18 years old and a citizen of India, non-resident or resident. If you are a minor, you can invest with the help of a guardian or parent,
The maximum you can get depends on the tenor and issuer you choose. Generally, the rates can go up to 8% per annum for regular investors. So, if you choose a tenor of 5 years and the issuer offers an interest rate of 7.77%, your ₹4 Lakh FD interest per amount will be ₹2,590.
There is no official limit on the interest rate for a fixed deposit of ₹4 Lakhs. However, the minimum and maximum cap of interest rate depends on the issuer.