Monthly Interest Rates for Rs. 70 lakh Fixed Deposit

Fixed Deposits (FDs) are one of the most common, and the safest investment option in India. As, FD interest is not market linked and remains fixed throughout the tenure. In this article, we will discuss the types of FDs, focusing on the cumulative and non-cumulative options, and how much interest you can earn on a Rs. 70 lakh investment in FD.

What is Fixed Deposit (FD)?

It is a financial instrument offered by many financial institutions where an individual deposits a lump sum amount for a predetermined period at a fixed interest rate. The deposited amount, along with the interest earned, is repaid at the end of the fixed tenure or at regular interval based on the type of FD. Fixed deposits are considered low-risk investments, and the interest rates are typically higher than regular savings accounts.

Types of FD

1. Cumulative FD: In cumulative FD, the interest is not paid out regularly but is reinvested into the principal amount. The interest compounds over time, and the entire maturity amount, including the principal and accumulated interest, is paid at the end of the tenure.
2. Non-cumulative FD: The interest earned is paid out at regular intervals, such as monthly, quarterly, half-yearly, or annually. This option suits individuals looking for regular income rather than a lump sum at maturity.

Financial institutions like Bajaj Finance offer both cumulative and non-cumulative FD options. Here’s the table showing how much interest can be earned if invested Rs. 70 lakh in Bajaj Finance FD.

Cumulative FD

Non- Cumulative FD