Monthly Interest Rates for Rs. 4 lakh Fixed Deposit

Understand how much interest you can earn Rs. 4 lakh FD.
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Rs. 4 lakh FD
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4 mins
16 July 2024

Fixed deposits are an excellent option for individuals looking for low-risk investments with guaranteed returns. It is a form of investment offered by financial institutions wherein the investor deposits a certain amount of money for a fixed tenure. The interest rate is predetermined and remains fixed throughout the tenure, offering a stable source of income for the investor.

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 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 8.85% p.a.
Here the table showing how much interest you can earn if you invest Rs. 4 lakh in Bajaj Finance FD:

Cumulative FD

Investor category

FD amount

Investment tenure

Applicable interest rate for cumulative interest

 Total interest payout at maturity

Customers below 60 years

Rs. 4 lakh

60 months

8.10% p.a.

Rs. 1,90,457

Senior citizens

Rs. 4 lakh

60 months

8.35% p.a.

Rs. 1,97,317

 

Non-Cumulative FD

Investor category

FD amount

Investment tenure

Applicable interest rate for cumulative interest

Total interest payout at maturity

Customers below 60 years

Rs. 4 lakh

60 months

7.81% p.a.

Rs. 1,56,200

Senior citizens

Rs. 4 lakh

60 months

8.05% p.a.

Rs. 1,61,000

Pro tip

Bajaj Finance launches a new variant, "FD Max", for investments upto Rs. 25,000 . Bajaj Finance is providing one of the highest interest rates of up to 8.85% p.a.for senior citizens and 8.60% p.a. for non-senior citizens , in this variant.

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How much interest can you earn on a 4 lakh FD

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

Amount

Interest rate (p.a.)

Interest per month

Rs. 4 lakh

6%

Rs. 2,000.00

Rs. 4 lakh

6.50%

Rs. 2,166.67

Rs. 4 lakh

7%

Rs. 2,333.33

Rs. 4 lakh

7.50%

Rs. 2,500.00

Rs. 4 lakh

8%

Rs. 2,666.67

Rs. 4 lakh

8.50%

Rs. 2,833.33

Rs. 4 lakh

9%

Rs. 3,000.00

Rs. 4 lakh

9.50%

Rs. 3,166.67

Rs. 4 lakh

10.00%

Rs. 3,333.33

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

What is the Digital FD offered by Bajaj Finance?

Bajaj Finance has launched a new FD variant called "Bajaj Finance Digital FD" for a period of 42 months. Bajaj Finance is providing one of the highest interest rates of up to 8.85% p.a. for senior citizens and for the customers below the age of 60 they are providing up to 8.60% p.a. The Digital FD can be opened and managed only through the website or app.

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.

Is there a benefit for senior citizens in FDs?

Yes, many banks and NBFC’s offer higher interest rates for senior citizens.

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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.