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.

Deposit Amount
Tenure
Months
Interest Rate
%
Interest Payout
Your Total Maturity Amount is
Your Total Maturity Amount is
Total Investment
Total Interest Earned

Monthly Interest on a ₹4 Lakhs FD

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.

Monthly Interest Income on a ₹4 Lakhs Fixed Deposit

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.

Disclaimer

The information provided by BFDL herein above is related to the Non-Partnered Banks/ NBFCs and is just for the purpose of information and under no circumstances the information provided hereinabove is intended to be source of advice or recommending any financial investment advice or endorsement of any sort. 

The information including interest rates with regard to fixed deposit, provided on this website is gathered through publicly available sources over the internet and is considered as accurate and reliable to the best of our knowledge. BFDL disclaims any responsibility or liability regarding inaccuracies, omissions, mistakes etc. as well as offers by the Non-Partnered Banks. The use of 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. You are advised to visit/ contact the respective Banks/ NBFCs to verify the information before making any investment or opening an account. Further, BFDL does not undertake any responsibility or liability to update this information. YOU ARE SOLELY RESPONSIBLE FOR ANY LIABILITY OR DAMAGE YOU INCUR THROUGH ACCESS TO OR USE OF THE SITE OR SUCH INFORMATION OR MATERIALS EXCEPT WHERE THE LAWS AND REGULATIONS OF A PARTICULAR JURISDICTION CONCERNING WARRANTIES CANNOT BE WAIVED. Additionally, display of any trademarks, tradenames, logo and other subject matters of intellectual property owners. Display of such Intellectual Property along with the related product information does not imply BFDL’s partnership with the owner of the Intellectual Property of such products. 

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FAQ on Monthly Interest for ₹4 Lakh FD

Are the monthly interest earnings on a ₹4 Lakh fixed deposit taxable?

The taxation of FD income depends on the interest earned. As per Section 194A of the Income Tax Act, 1961, if your annual interest exceeds ₹40,000, TDS is applicable. For senior citizens, the limit is ₹50,000. Given the current rates, it's unlikely to exceed this limit.

What are the eligibility criteria for a ₹4 Lakh fixed deposit?

To invest in a ₹4 Lakh FD, you need to be at least 18 years old and a citizen of India, whether resident or non-resident. Minors can invest with the assistance of a guardian or parent.

What is the maximum interest I can get on a ₹4 Lakh fixed deposit?

The maximum interest depends on the tenor and issuer. Generally, rates can reach up to 8% per annum for regular investors. For instance, with a tenor of 5 years and an interest rate of 7.77%, your monthly interest on a ₹4 Lakh FD would be ₹2,590.

Is there a minimum and maximum cap on the interest rate for a fixed deposit of ₹4 Lakhs?

There is no official limit on the interest rate for a ₹4 Lakh FD. However, the minimum and maximum caps depend on the issuer.

Is there a penalty for withdrawing the ₹4 Lakhs FD before maturity?

Yes, there might be penalties for premature withdrawal of an FD before its maturity date. The penalty amount varies between banks and financial institutions. It's advisable to check with your bank or read the terms and conditions of your FD agreement to understand the specific penalties associated with early withdrawals.

What happens if I do not renew my ₹4 Lakhs fixed deposit after maturity?

If you do not renew your ₹4 Lakhs fixed deposit after maturity, the funds will typically be transferred to your linked savings or current account. However, it's essential to clarify the process with your bank or financial institution beforehand to ensure a smooth transition of funds.

Can I add more money to my ₹4 Lakhs fixed deposit during the tenure?

In most cases, you cannot add more money to an existing fixed deposit during its tenure. Fixed deposits are typically made for a specific period with a fixed amount. However, you can open a new fixed deposit with additional funds if you wish to invest more money.

Is my ₹4 Lakhs fixed deposit amount insured?

Yes, typically, FDs up to ₹5 Lakhs per bank are insured under the Deposit Insurance and Credit Guarantee Corporation (DICGC) scheme. Therefore, your ₹4 Lakhs fixed deposit amount is usually insured, protecting against bank failure or default up to the insured limit. It's important to note that this insurance coverage is per depositor per bank/NBFC If you have multiple fixed deposits in the same bank, the total coverage would still be up to ₹5 Lakhs only.

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