Monthly Interest Payout on a ₹16 Lakh Fixed Deposit

Booking a fixed deposit of ₹16 Lakhs allows you to grow your capital and get assured returns. Monthly returns could aid in managing recurring obligations, depending on the amount invested.  By choosing the best interest rates and tenure, you could enhance your profitability. 

 

For example, with an FD of ₹16 Lakhs at an interest rate of 8% p.a. over a 5-year tenure, you would receive a monthly interest payout of ₹10,667, resulting in total interest earnings of ₹7.5 Lakhs over the entire tenure. The higher the interest rate you choose, the better your returns will be.

 

When finalising your fixed deposit investment, compare interest rates across issuers. Remember, the ₹16 Lakh fixed deposit interest per month will vary depending on the tenure and applicable FD rate.

The monthly returns you earn on an FD depend on the applicable interest rate. Check out the following table for ₹16 Lakh FD interest per month for 5 years at different interest rates.

Check out the table below for ₹16 Lakh FD interest per month for 5 years from different banks and NBFCs.

Here’s a table outlining the maturity amounts for a ₹16 Lakh fixed deposit at an interest rate of 7.25% p.a., with details provided for various tenures:

Understand the tax implications if you are planning to invest such a sizable amount in an FD. The following are some of the crucial regulations.

• If your annual interest income is more than ₹40,000, the bank or NBFC will deduct Tax Deducted at Source (TDS) at 10%

• Senior citizens can enjoy a higher exemption limit of ₹50,000 for taxation on FD interest

• A standard rate of TDS at 10% will be applicable if you have submitted your PAN details

• If you have not furnished your PAN card, the bank or NBFC will deduct TDS at a higher rate of 20% 

To get an estimate of the amount you can earn as monthly interest, utilise the facility of calculator provided above. Follow these steps to compute ₹16 Lakh FD interest per month.

1. Enter the investment amount, tenure, and interest rate

2. Select the ‘Monthly’ option under the ‘Interest Payout’ category

3. You can check the estimate of total and monthly interest payouts

Maturity Amount Calculation Example

Let’s assume you invested ₹16 Lakhs in a fixed deposit with an interest rate of 7.25% p.a. for a tenure of 4 years (48 months). To calculate the monthly interest, follow this method:

• Monthly Interest Earned = Principal × Interest Rate / 12

• Monthly Interest Earned = ₹16,00,000 × 7.25% / 12

• Monthly Interest Earned = ₹1,16,000 / 12

• Monthly Interest Earned = ₹9,666.67

 

Thus, the monthly interest earned on an FD of ₹16 Lakhs at 7.25% p.a. would be ₹9,666.67

 

Total Interest Earned Upon Maturity

• Total Interest = Monthly Interest × Number of Months

• Total Interest = ₹9,666.67 × 48

• Total Interest = ₹4,64,000

 

Over the 4-year tenure, the total interest earned would be ₹4,64,000, that is for ₹16 lakh FD interest per month, the payout would be ₹9,666.67

Withdrawing funds from a fixed deposit before maturity usually results in reduced ₹16 lakh FD interest per month. Banks and NBFCs offer lower interest rates on the withdrawn amount and may also charge a penalty, further decreasing your overall earnings. These deductions can significantly affect the total returns on your FD.

FD Premature Withdrawal Example

Let’s say you invested ₹16 Lakhs in a fixed deposit for 4 years at an interest rate of 7.25% p.a., but you decide to withdraw it after 1 year. The applicable interest rate for that period would drop to 6.25% p.a. After factoring in a 1% penalty for early withdrawal, the final interest rate would be reduced to 5.25% p.a., leading to lower-than-expected returns.

The information provided by BFDL is related to the rates provided by Banks and Deposit taking NBFCs and under no circumstances is intended to be source of advice or recommending any financial investment advice or endorsement of any sort. BFDL disclaims any responsibility or liability regarding inaccuracies, omissions, mistakes etc. as well as offers and the use of such 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. 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 and is solely for the purpose of information, unless otherwise provided.