Monthly Interest Rates for Rs. 4 lakh Fixed Deposit

Check monthly interest rates for a Rs. 4 lakh Fixed Deposit. Learn how FD tenure and interest rates affect your monthly income and overall returns.
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Rs. 4 lakh FD
OPEN FD
4 mins
22-June-2026

A Fixed Deposit (FD) is a dependable investment option for individuals who prefer stable returns without taking on market-related risks. It offers a fixed rate of interest for the chosen tenure, allowing your savings to grow in a predictable manner.


If you invest in a Rs. 4 lakh FD, your deposit earns interest at the applicable rate for the selected tenure, helping you build wealth with confidence. Since the returns are fixed at the time of booking, you can plan your finances with greater certainty.


Types of Fixed deposit

  1. Cumulative FD

    In a cumulative FD, the interest earned on the deposit is reinvested with the principal amount for the entire tenure. The total interest is paid out to the investor at maturity. Cumulative FDs often offer higher interest rates, as the interest is compounded and reinvested, which gives investors higher returns.

  2. Non-cumulative FD

    Non-cumulative FDs operate differently. Here, the interest earned is paid out at regular intervals, such as monthly, quarterly, half-yearly, or annually, based on the investor's preference. This type suits those seeking a regular income stream, providing liquidity and immediate returns. The interest payouts offer flexibility, making it ideal for individuals with specific financial goals or regular income requirements.


NBFC's like Bajaj Finance offer both cumulative and non-cumulative FD, with one of the highest interest rate up to 7.75% p.a.

Here the table showing how much interest you can earn if you invest Rs. 4 lakh in Bajaj Finance FD:

Cumulative FDInvestor categoryFD amountInvestment tenureApplicable interest rate for cumulative interestTotal interest payout at maturity
Customers below 60 yearsRs. 4 lakh60 months7.40% p.a.Rs. 1,59,711
Senior citizensRs. 4 lakh60 months7.75% p.a.Rs. 1,68,930



Non-Cumulative FD

Investor categoryFD amountInvestment tenureApplicable interest rate for monthly interestTotal interest payout at maturity
Customers below 60 yearsRs. 4 lakh60 months7.16% p.a.Rs. 1,34,800
Senior citizensRs. 4 lakh60 months7.49% p.a.Rs. 1,41,400

Pro tip

Bajaj Finance offers attractive Fixed Deposit interest rates of up to 7.40% p.a. for non-senior citizens, and up to 7.75% p.a. for senior citizens, inclusive of an additional rate benefit of up to 0.35% p.a.

systematic-deposit-plan-pro-tip-banner

FD Monthly Interest Pay-out for Deposits of Rs. 4 lakh

Earning interest on Rs. 4 lakh Fixed Deposit (FD) varies among banks and NBFCs, but it generally ranges from 5% to 10% p.a. Here the table showing how much interest you can earn at different interest rates if you invest Rs. 4 lakh in a FD

AmountInterest rate (p.a.)Interest per month from Rs. 4 lakh FD
Rs. 4 lakh6%Rs. 2,000.00
Rs. 4 lakh6.50%Rs. 2,166.67
Rs. 4 lakh7%Rs. 2,333.33
Rs. 4 lakh7.50%Rs. 2,500.00
Rs. 4 lakh8%Rs. 2,666.67
Rs. 4 lakh8.50%Rs. 2,833.33
Rs. 4 lakh9%Rs. 3,000.00
Rs. 4 lakh9.50%Rs. 3,166.67
Rs. 4 lakh10.00%Rs. 3,333.33

* The rates and interest amounts mentioned above are for illustration purposes only. For actual returns, please refer to the BFL FD calculator.

TDS on a Fixed Deposit of Rs. 4 Lakh


 

  • TDS threshold for regular citizens: Banks and financial institutions deduct TDS at 10% only if the total interest earned from all FDs with the same institution exceeds Rs. 50,000 in a financial year (earlier Rs. 40,000).
  • TDS threshold for senior citizens: For resident senior citizens, TDS applies only when annual FD interest crosses Rs. 1,00,000, increased from the earlier limit of Rs. 50,000.
  • Form 15G / Form 15H: These forms can be submitted to prevent TDS if your total taxable income is below the basic exemption limit—Rs. 4 lakh under the New Tax Regime for FY 2025–26 (up to Rs. 12 lakh with rebate) and Rs. 2.5 lakh under the Old Tax Regime.
  • PAN requirement: When PAN details are provided and interest exceeds the prescribed limits, TDS is deducted at 10%.
  • Non-submission of PAN: If PAN is not furnished, TDS is deducted at a higher rate of 20%.
  • When TDS is deducted: TDS is not deducted monthly. It is usually deducted at the time interest is credited (quarterly or annually) or at the end of the financial year, whichever occurs earlier.


How to calculate interest on a Rs.4 lakh FD


You can use an FD calculator to estimate the returns on a Rs.4 lakh fixed deposit. Follow these steps to calculate the monthly interest:

  • Enter the investment amount, tenure, and applicable interest rate.
  • Select the “Monthly” option under the interest payout category.

  • The calculator will display the estimated monthly interest for a Rs.4 lakh fixed deposit.


Maturity amount calculation example


Here is an example of calculating the monthly interest and total maturity value if you invest Rs.4 lakh in a fixed deposit at an interest rate of 7.40% p.a. for 3 years:

Monthly Interest = Principal × Interest Rate / 12
Monthly Interest = Rs.4,00,000 × 7.40% / 12
Monthly Interest = Rs.29,600 / 12
Monthly Interest = Rs.2,466.67

The monthly interest earned on this FD would be Rs.2,466.67.


Interest earned upon maturity

Total Interest = Monthly Interest × Number of Months
Total Interest = Rs.2,466.67 × 36
Total Interest = Rs.88,800.12

The total interest accumulated over the 3 year period would be Rs.88,800.12.



Conclusion

Investing in Fixed Deposit offers a stable source for saving and earning. The monthly interest rates contribute to financial growth, providing a dependable source of income. This simple investment option aligns with various financial goals, offering a balance of security and returns.

Whether one is pursuing short-term gains or long-term wealth accumulation, fixed deposit stands out as a versatile and trustworthy financial instrument.

Frequently asked questions

Can I withdraw my FD before maturity?

Yes, you can withdraw FD before maturity, but it might attract penalties. Premature withdrawals often result in reduced interest rates or additional charges imposed by the financial institution.

Are FD returns taxable?

Yes, the interest earned on FDs is taxable. The tax rate depends on your income tax slab. TDS (Tax Deducted at Source) may apply if the interest exceeds a certain limit.

Is there a difference between Cumulative and Non-cumulative FDs?

Yes, Cumulative FDs reinvest the interest, providing a lump sum at maturity, while Non-cumulative FDs pay out interest at regular intervals like monthly, quarterly, half yearly, annually.

Can the FD interest rate change after investment?

No, the interest rate is fixed at the time of investment and remains constant throughout the tenure.

How much interest on Rs. 4 lakh FD?

The interest on a Rs. 4 lakh fixed deposit depends on the tenure and the interest rate offered by the bank or NBFC. For example, at an interest rate of 7.5% per annum for 1 year, you would earn around Rs. 30,000 in interest. Always check the latest FD rates before investing.

What are the eligibility criteria for a fixed deposit of Rs. 4 Lakhs?

To invest in a Rs. 4 lakh fixed deposit, you must be an Indian citizen aged 18 or above. Certain financial institutions also permit Non-Resident Indians (NRIs) to open fixed deposit accounts.

How much interest will I earn on a Rs. 4 lakh FD for 1 year?

The interest on a ₹4 lakh fixed deposit for one year depends on the applicable FD rate. At an interest rate of 6%–7.5% per annum, you can earn approximately Rs. 24,000 to Rs. 30,000 before tax, assuming simple annual payout.

Which is the safest investment for Rs. 4 lakh?

Fixed deposits with reputed banks or highly rated NBFCs, Public Provident Fund (PPF), and government-backed schemes are considered among the safest options. These instruments offer capital protection, predictable returns, and lower risk compared to market-linked investments.

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Disclaimer

As regards deposit taking activity of Bajaj Finance Ltd (BFL), the viewers may refer to the advertisement in the Indian Express (Mumbai Edition) and Loksatta (Pune Edition) furnished in the application form for soliciting public deposits or refer https://www.bajajfinserv.in/fixed-deposit-archives
The company is having a valid Certificate of Registration dated March 5, 1998 issued by the Reserve Bank of India under section 45 IA of the Reserve Bank of India Act, 1934. However, the RBI does not accept any responsibility or guarantee about the present position as to the financial soundness of the company or for the correctness of any of the statements or representations made or opinions expressed by the company and for repayment of deposits/discharge of the liabilities by the company.

For the FD calculator the actual returns may vary slightly if the Fixed Deposit tenure includes a leap year.