Monthly Interest Payout on a ₹40 Lakh Fixed Deposit
Investment Amount
Interest Rate
Total Interest Amount
Total Payout (Principal + Interest)
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Investing ₹40 Lakhs in a fixed deposit (FD) and opting for monthly interest payouts can net you upwards of ₹30,000, with the right terms. The pivotal factor in this decision-making process is the interest rate linked to the FD. It and the tenor directly influence the interest per month on a fixed deposit of ₹40 Lakhs. A preference for a higher interest rate is key as it can combat erosion due to inflation.
Refer to the table below for the monthly interest on an FD of ₹40 Lakhs with a tenor of 5 years across different interest rates:
Deposit Amount |
Interest Rate (p.a.) |
Monthly Interest Payout |
₹40 Lakhs |
6.00% |
₹20,000 |
₹40 Lakhs |
6.50% |
₹21,666 |
₹40 Lakhs |
7.00% |
₹23,333 |
₹40 Lakhs |
7.50% |
₹25,000 |
₹40 Lakhs |
8.00% |
₹26,666 |
₹40 Lakhs |
8.50% |
₹28,333 |
₹40 Lakhs |
9.00% |
₹30,000 |
₹40 Lakhs |
9.50% |
₹31,666 |
₹40 Lakhs |
10.00% |
₹33,333 |
Note: The monthly interest payouts mentioned above are indicative, and your actual returns will vary depending on the issuer’s policies.
Considering that issuers change their rates often, it is crucial to compare. Here is a table to highlight the monthly interest on a fixed deposit of ₹40 Lakhs across various issuers, over a tenor of 5 years.
Bank/NBFC/HFC |
Non-Senior Citizen (p.a.) |
Monthly Interest Payout |
Senior Citizen (p.a.) |
Monthly Interest Payout |
7.81% |
₹26,033 |
8.05% |
₹26,833 |
|
7.39% |
₹24,633 |
7.59% |
₹25,300 |
|
7.55% |
₹25,166 |
7.80% |
₹26,000 |
|
LIC Housing Finance Ltd |
7.50% |
₹25,000 |
7.75% |
₹25,833 |
8.47% |
₹28,233 |
8.97% |
₹29,900 |
|
ICICI Bank |
7.00% |
₹23,333 |
7.50% |
₹25,000 |
HDFC Bank |
7.00% |
₹23,333 |
7.50% |
₹25,000 |
IDFC First Bank |
7.00% |
₹23,333 |
7.50% |
₹25,000 |
Axis Bank |
7.00% |
₹23,333 |
7.75% |
₹25,833 |
IndusInd Bank |
7.25% |
₹24,167 |
7.75% |
₹25,833 |
7.25% |
₹24,166 |
8.00% |
₹26,666 |
|
Jana Small Finance Bank |
7.25% |
₹24,166 |
7.75% |
₹25,833 |
7.20% |
₹24,000 |
7.70% |
₹25,666 |
|
Kotak Mahindra Bank |
6.20% |
₹20,666 |
6.70% |
₹22,333 |
SBI |
6.50% |
₹21,666 |
7.50% |
₹25,000 |
AU Small Finance Bank |
7.21% |
₹24,033 |
7.70% |
₹25,666 |
Note: The above-mentioned rates are subject to change at the issuer’s discretion.
With an understanding of the potential interest per month on a fixed deposit of ₹40 Lakhs, book the right FD by comparing issuers on Bajaj Markets. The process is quick and easy, and you can also use the FD calculator as needed. It helps determine the returns you could earn on your investment and streamlines planning.
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The information provided by BFDL is related to the rates provided by Banks and Deposit taking NBFCs as available from public domain and under no circumstances is intended to be source of advice or recommendation of any financial investment advice or endorsement of any sort. BFDL disclaims any responsibility or liability regarding inaccuracies, omissions, mistakes etc. as well as offers and use of such 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. Display of any intellectual property along with the related product information does not imply BFDL’s partnership with the owner of the intellectual property of such products and is solely for the purpose of information, unless otherwise provided by BFDL.
FAQs on Monthly Interest Payout on a ₹40 Lakh FD
Is there a tax applicable on the interest earned on an FD of ₹40 Lakhs?
Yes, interest earned on an FD of ₹40 Lakhs is taxable as it comes under 'Income from Other Sources'. Banks and NBFCs deduct a 10% TDS annually, but this can be avoided by submitting Form 15G, if applicable. Additional tax, if any, depends on your tax slab.
How much interest will I get on a fixed deposit of ₹40 Lakhs?
The interest on an FD of ₹40 Lakhs varies based on the bank or NBFC's interest rate, FD type, and tenor.
What are the documents required for a fixed deposit of ₹40 Lakhs?
To open an FD of ₹40 Lakhs, you typically need KYC documents like a PAN card, proof of identity and proof of address. These can be your Aadhaar card, Driving Licence, Voter’s ID, or Passport. You may also need to provide some additional documents as required by the issuer.
What are the eligibility criteria for a fixed deposit of ₹40 Lakhs?
All Indian residents, including HUFs, sole proprietorships, partnerships, trusts, and companies, can open an FD of ₹40 Lakhs, subject to specific documentation requirements.
How can I calculate the interest on an FD interest of ₹40 Lakhs?
The interest on an FD of ₹40 Lakhs can be calculated using the formula: P(1 + r/n)nt - P. Here, P is the principal, r is the interest rate, n is the compounding frequency, and t is the tenor. Alternatively, use an online FD calculator for quick results.
Is there a penalty for withdrawing from an FD of ₹40 Lakhs before maturity?
Yes, the penalty amount varies depending on the bank or NBFC's terms and conditions.
Can I take a loan against a fixed deposit of ₹40 Lakhs?
Yes, you can typically get a loan against your FD of ₹40 Lakhs. Banks and NBFCs offer loan facilities against fixed deposits, providing you with liquidity without disrupting your deposit.
Can I add more funds to my fixed deposit of ₹40 Lakhs during the tenor?
No, you generally cannot add more funds to an existing fixed deposit in the middle of the tenor. These are typically one-time deposit investments, and additional deposits are not allowed once the FD is booked.
Is the amount that I have invested in my FD of ₹40 Lakhs insured?
Yes, fixed deposits are insured by the Deposit Insurance and Credit Guarantee Corporation (DICGC) for up to ₹5 Lakhs per depositor per bank.
Can the interest payout frequency be customised for an FD of ₹40 Lakhs?
Yes, the interest payout frequency for a fixed deposit of ₹40 Lakhs can usually be customised according to your preference. You can choose from monthly, quarterly, half-yearly, or annual interest payouts based on your financial needs.
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