Monthly Interest on a ₹40 Lakh Fixed Deposit

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 on ₹40 Lakh FD. It and the tenure directly influence the monthly interest on ₹40 Lakh FD. A preference for a higher interest rate is key as it can combat erosion due to inflation.

 

For instance, with a 7% p.a. interest rate on an FD of ₹40 Lakhs for 5 years, you could earn as much as ₹23,333 each month. Similarly, if you book an FD for the same amount and same tenure at a rate of 9.50%, your monthly earnings will be ₹31,666. 

 

So, always compare different rates before finalising an FD scheme.

Check the table below to understand the monthly interest for a ₹40 Lakh fixed deposit you may receive for a tenure of 5 years:

Here is an overview of the FD interest for ₹40 Lakhs you could get if you book for a tenure of 5 years with top banks and NBFCs:

Non-resident Indians (NRIs) can invest in fixed deposits through Non-resident External (NRE) and Non-resident Ordinary (NRO) accounts offered by banks and NBFCs. Here are the ₹40 Lakh FD interest rates for NRE and NRO FDs:

Here’s a table outlining the ₹40 Lakh FD interest per year for an investment at an interest rate of 8.97% p.a., for various tenures:

To maximise your returns and estimate your actual returns, understand tax implications carefully. Here are a few things to know:

• Banks and NBFC deduct Tax Deducted at Source (TDS) at 10% if the annual interest earnings exceed ₹40,000 

• The exemption limit for ₹40 Lakh FD interest per month senior citizen is ₹50,000 in a financial year

• If you have not submitted your PAN card, the financial institution issuing the FD of ₹40 Lakh will deduct TDS at 20%.

Use an online calculator to compute how much you can earn by investing this sum in a fixed deposit. Follow these simple steps:

• Enter the principal amount, interest rate, and tenure

• Some calculators may also require you to add details about the type of the investor

• Opt for the ‘Monthly Payout’ facility to compute ₹40 Lakh fixed deposit interest per month

Maturity Amount Calculation Example

Let’s assume you invested ₹40 Lakhs in a fixed deposit at an interest rate of 7% p.a. for a period of 3 years (36 months). Here's how you can manually calculate the ₹40 Lakh FD interest:

• Monthly Interest Earned = Principal × Interest Rate / 12

• Monthly Interest Earned = ₹40,00,000 × 7% / 12

• Monthly Interest Earned = ₹2,80,000 / 12

• Monthly Interest Earned = ₹23,333.33

 

The monthly interest earned on a ₹40 lakh FD at 7% p.a. would be ₹23,333.33.

 

Interest Earned Upon Maturity

• Total Interest = Monthly Interest × Number of Months

• Total Interest = ₹23,333.33 × 36

• Total Interest = ₹8,40,000

 

The total interest earned over the 3-year tenure would be ₹8,40,000, with a monthly payout of ₹23,333.33

 

Note: Check the formula used by the bank or NBFC to get an accurate estimate.

Withdrawing your fixed deposit before maturity may reduce your returns. Banks and NBFCs often apply a lower interest rate on premature withdrawals and charge a small penalty. These factors can significantly impact your overall earnings, so it’s important to consider before breaking your investment early.

FD Premature Withdrawal Example

You invest ₹40 Lakhs in an FD with a 3-year tenure at an interest rate of 8.00% p.a. However, you decide to withdraw it prematurely after 2 years. Here, the applicable interest rate for the 2-year period would be 7.00% p.a. After applying a 1% penalty, the final interest rate drops to 6.00% p.a., resulting in lower returns.

The information provided by BFDL is related to the rates provided by Banks and Deposit taking NBFCs as available from public domain and under no circumstances is intended to be source of advice or recommendation of 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 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 any 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 by BFDL.