Investing ₹40 Lakhs in a fixed deposit (FD) unfolds as a savvy financial decision for reliable capital growth. The pivotal factor in this decision-making process is the interest rate linked to the FD.
Carefully selecting an FD with a competitive interest rate directly shapes the overall returns over the investment period. A preference for a higher interest rate not only guards against inflation but also assures a stable income stream. Therefore, a diligent focus on interest rates is essential when aiming for substantial financial gains and sustained wealth augmentation.
The table below indicates the monthly interest payout you could earn on a fixed deposit of ₹40 Lakhs over a tenor of 5 years.
Bank/NBFC/HFC |
Non-Senior Citizen (p.a.) |
Monthly Interest Payout |
Senior Citizen (p.a.) |
Monthly Interest Payout |
8.05% |
₹26,833 |
8.30% |
₹27,667 |
|
7.65% |
₹25,500 |
7.95% |
₹26,500 |
|
8.05% |
₹26,833 |
8.30% |
₹27,667 |
|
LIC Housing Finance Ltd |
7.50% |
₹25,000 |
7.75% |
₹25,833 |
8.60% |
₹28,667 |
9.14% |
₹30,467 |
|
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 |
8.00% |
₹26,667 |
7.25% |
₹24,167 |
8.00% |
₹26,667 |
|
Jana Small Finance Bank |
7.25% |
₹24,167 |
7.75% |
₹25,833 |
7.20% |
₹24,000 |
7.70% |
₹25,667 |
|
Kotak Mahindra Bank |
6.20% |
₹20,667 |
6.70% |
₹22,333 |
SBI |
6.50% |
₹21,667 |
7.50% |
₹25,000 |
7.25% |
₹24,167 |
7.75% |
₹25,833 |
Disclaimer: The above-mentioned rates are effective as of 16th November 2023 and are subject to change as per the issuer’s discretion.
Refer to the table below for the monthly interest income you could earn on an FD of ₹40 Lakhs across different interest rates:
Deposit Amount |
Interest Rate (p.a.) |
Monthly Interest Payout |
₹40 Lakhs |
6.00% |
₹20,000 |
₹40 Lakhs |
6.50% |
₹21,667 |
₹40 Lakhs |
7.00% |
₹23,333 |
₹40 Lakhs |
7.50% |
₹25,000 |
₹40 Lakhs |
8.00% |
₹26,667 |
₹40 Lakhs |
8.50% |
₹28,333 |
₹40 Lakhs |
9.00% |
₹30,000 |
₹40 Lakhs |
9.50% |
₹31,667 |
₹40 Lakhs |
10.00% |
₹33,333 |
Now that you have an understanding of the potential returns you could earn from an ₹40 Lakhs fixed deposit, you can secure your investment by booking an FD on Bajaj Markets. You can also use the FD calculator to determine the returns you could earn on your investment.
Check Monthly Interest Rates on Your Fixed Deposits |
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Yes, interest earned on a ₹40 Lakhs FD is taxable 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.
The interest on a ₹40 Lakh FD varies based on the bank or NBFC's interest rate, FD type, and tenure.
You typically need KYC documents like PAN card, Aadhaar card, and proof of address. These can be Aadhaar, Driving Licence, Voter’s ID, or Passport to open a ₹40 Lakh FD.
All Indian residents, including HUFs, sole proprietorships, partnerships, trusts, and companies, can open a ₹40 Lakh fixed deposit, subject to specific documentation requirements.
FD interest on ₹40 Lakhs is 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.
Yes, the penalty amount varies depending on the bank or NBFC's terms and conditions.
You can typically avail of a loan against your ₹40 Lakh fixed deposit. Banks and NBFCs offer loan facilities against fixed deposits, providing you with liquidity without breaking your deposit.
You 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.
Fixed deposits are insured by the Deposit Insurance and Credit Guarantee Corporation (DICGC) for up to ₹5 Lakhs per depositor per bank.
Yes, the interest payout frequency for a ₹40 Lakh fixed deposit 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.