Monthly Interest for Rs. 25 lakh Fixed Deposit

Gain valuable insights into the impact of monthly interest rates on a Rs. 25 lakh Fixed Deposit, empowering you to make informed financial decisions and maximize returns.
Rs. 25 lakh Fixed Deposit
4 mins
12 January 2024

For investors looking to invest their money, fixed deposits are a safe and secured option. You can earn a fixed rate of interest on your deposited amount, which remains unchanged throughout your FD tenure.

Monthly interest rates for Rs. 25 lakh fixed deposit will depend on the tenure of the deposit and the interest rate offered by the financial institution.

Advantages of Investing in FD

  1. Regular income: Non-cumulative fixed deposits provide a regular and predictable source of income to investors in the form of interest payouts. Monthly or quarterly, half yearly and annually.
  2. Flexible tenure: FDs offer a wide range of tenures, ranging from a few days to several years. This flexibility allows investors to choose a tenure that suits their needs, whether it is short-term liquidity or long-term wealth creation.
  3. Higher interest rates: FDs usually offer higher interest rates than savings accounts, making them an attractive investment option for those looking to earn more on their savings.
  4. Easy access: FDs are easily accessible, and the investment process is simple and hassle-free. Investors can open an FD account at any bank or NBFC by providing the necessary documents. NBFC like Bajaj Finance just require a PAN card and any KYC document (Aadhar card, Passport, Driving license, Voter ID).

Pro tip

Enjoy higher interest rate with Bajaj Finance Digital FD. Unlock returns of up to 8.85% p.a. by investing for 42 months via our website and app.

Monthly interest rates for Rs. 25 lakh Fixed Deposit

Monthly interest rates for a Rs. 25 lakh Fixed Deposit depend on the annual interest rate. For instance, if the FD rate is 8.2% per annum, the monthly interest can be calculated using the formula:

Monthly Interest= Principal Amount × Annual Interest Rate​/12

For a Rs. 25 lakh FD with an 8.2% p.a. interest rate:

Monthly Interest = Rs. 25,00,000 × 8.2%/12

Monthly Interest = Rs. 17,083

So, with an 8.2% annual interest rate, a Rs. 25 lakh Fixed Deposit could earn Rs. 17,083 as monthly interest.

Types of fixed deposits

1. Cumulative fixed deposit: In a cumulative fixed deposit, the interest earned on the deposit is reinvested into the fixed deposit for the tenure of the deposit. The interest earned on the deposit, along with the principal amount, is paid out to the investor at maturity. Cumulative fixed deposits usually offer higher interest rates than non-cumulative fixed deposits since the interest is reinvested, thus allowing the investor to earn interest on the interest. Let us take example, how much you can if you invest Rs. 25 lakh in Bajaj Finance cumulative FD.

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Investor category

FD amount

Investment tenure

Applicable interest rate for monthly interest payout

Total interest payout

Scenario 1

Customers below 60 years

Rs. 25 lakh

60 months

7.81% p.a.

Rs. 9,71,250

Scenario 2

Senior citizens

Rs. 25 lakh

60 months

8.05% p.a.

Rs. 10,00,000

2. Non-cumulative fixed deposit: In a non-cumulative fixed deposit, the interest earned on the deposit is paid out at specific intervals, usually monthly, quarterly, half-yearly or yearly, based on the preference of the investor. These types of fixed deposits are suitable for those who want a regular income stream and require immediate liquidity. Understand this with example if you have invested Rs. 25 lakh in Bajaj Finance non-cumulative FD.

-

Investor category

FD amount

Investment tenure

Applicable interest rate for cumulative interest

Total interest payout

Scenario 1

Customers below 60 years

Rs. 25 lakh

60 months

8.10% p.a.

Rs. 11,81,831

Scenario 2

Senior citizens

Rs. 25 lakh

60 months

8.35% p.a.

Rs. 12,24,623


What is Bajaj Finance Digital FD?

Bajaj Finance launched a new FD called "Bajaj Finance Digital FD", with a tenure of 42 months. Exclusively available on their website or app. Senior citizens get interest up to 8.85% p.a., and customers below 60 can get interest up to 8.60% p.a.

Conclusion

Investing Rs. 25 lakh fixed deposit can give you a steady monthly income source. Fixed deposits provide safety with higher interest rates. Exploring cumulative and non-cumulative FD options can helps investors to plan and customise their finances better.

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.