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.

Deposit Amount

Interest Rate

Tenure

Months

Interest Payout

At Maturity
At Maturity
Monthly
Quaterly
Half Yearly
Yearly

Invest Amount

Interest Rate

Total Interest Amount

Total Payout Principal + Interest

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Monthly Interest Payout on a Fixed Deposit of ₹40 Lakhs

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.

Monthly Interest on an FD of ₹40 Lakhs Offered by Banks and NBFCs

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

Bajaj Finance Ltd.

7.81%

₹26,033

8.05%

₹26,833

PNB Housing Finance Ltd. 

7.39%

₹24,633

7.59%

₹25,300

Mahindra Finance Ltd. 

7.55%

₹25,166

7.80%

₹26,000

LIC Housing Finance Ltd

7.50%

₹25,000

7.75%

₹25,833

Shriram Finance

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

YES Bank 

7.25%

₹24,166

8.00%

₹26,666

Jana Small Finance Bank 

7.25%

₹24,166

7.75%

₹25,833

Ujjivan Small Finance Bank

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.

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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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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