Monthly Interest Rates for Rs. 4 lakh Fixed Deposit

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 7.30% p.a.
Here the table showing how much interest you can earn if you invest Rs. 4 lakh in Bajaj Finance FD: