Monthly Interest Rates for Rs. 4 lakh Fixed Deposit

Know the Monthly Interest Rates for Rs. 4 lakh Fixed Deposit. Compare FD options offering regular monthly income and choose the right plan for your needs
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Rs. 4 lakh FD
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4 mins
30-June-2025

A fixed deposit is a safe and reliable investment option for those seeking steady returns with minimal risk. By investing a sum like Rs. 4 lakh FD for a fixed tenure, you earn interest at a predetermined rate that remains unchanged, ensuring a stable and predictable income throughout the investment period.

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 and 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:

Cumulative FD

Investor category

FD amount

Investment tenure

Applicable interest rate for cumulative interest

Total interest payout at maturity

Customers below 60 years

Rs. 4 lakh

60 months

6.95% p.a.

Rs. 1,59,711

Senior citizens

Rs. 4 lakh

60 months

7.30% p.a.

Rs. 1,68,930

 

 


Non-Cumulative FD

Investor category

FD amount

Investment tenure

Applicable interest rate for cumulative interest

Total interest payout at maturity

Customers below 60 years

Rs. 4 lakh

60 months

6.74% p.a.

Rs. 1,34,800

Senior citizens

Rs. 4 lakh

60 months

7.07% p.a.

Rs. 1,41,400

Pro tip

Bajaj Finance offers attractive Fixed Deposit interest rates of up to 6.95% p.a. for non-senior citizens, and up to 7.30% p.a. for senior citizens, inclusive of an additional rate benefit of up to 0.35% p.a.

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FD Monthly Interest Pay-out for Deposits of Rs. 4 lakh

Earning interest on Rs. 4 lakh Fixed Deposit (FD) varies among banks and NBFCs, but it generally ranges from 5% to 10% p.a. Here the table showing how much interest you can earn at different interest rates if you invest Rs. 4 lakh in a FD

Amount

Interest rate (p.a.)

Interest per month from Rs. 4 lakh FD

Rs. 4 lakh

6%

Rs. 2,000.00

Rs. 4 lakh

6.50%

Rs. 2,166.67

Rs. 4 lakh

7%

Rs. 2,333.33

Rs. 4 lakh

7.50%

Rs. 2,500.00

Rs. 4 lakh

8%

Rs. 2,666.67

Rs. 4 lakh

8.50%

Rs. 2,833.33

Rs. 4 lakh

9%

Rs. 3,000.00

Rs. 4 lakh

9.50%

Rs. 3,166.67

Rs. 4 lakh

10.00%

Rs. 3,333.33

Conclusion

Investing in Fixed Deposit offers a stable source for saving and earning. The monthly interest rates contribute to financial growth, providing a dependable source of income. This simple investment option aligns with various financial goals, offering a balance of security and returns.

Whether one is pursuing short-term gains or long-term wealth accumulation, fixed deposit stands out as a versatile and trustworthy financial instrument.

Frequently asked questions

Can I withdraw my FD before maturity?

Yes, you can withdraw FD before maturity, but it might attract penalties. Premature withdrawals often result in reduced interest rates or additional charges imposed by the financial institution.

Are FD returns taxable?

Yes, the interest earned on FDs is taxable. The tax rate depends on your income tax slab. TDS (Tax Deducted at Source) may apply if the interest exceeds a certain limit.

Is there a difference between Cumulative and Non-cumulative FDs?

Yes, Cumulative FDs reinvest the interest, providing a lump sum at maturity, while Non-cumulative FDs pay out interest at regular intervals like monthly, quarterly, half yearly, annually.

Can the FD interest rate change after investment?

No, the interest rate is fixed at the time of investment and remains constant throughout the tenure.

Is there a benefit for senior citizens in FDs?

Yes, many banks and NBFC’s offer higher interest rates for senior citizens.

How much interest on Rs. 4 lakh FD?

The interest on a Rs. 4 lakh fixed deposit depends on the tenure and the interest rate offered by the bank or NBFC. For example, at an interest rate of 7.5% per annum for 1 year, you would earn around Rs. 30,000 in interest. Always check the latest FD rates before investing.

What are the eligibility criteria for a fixed deposit of Rs. 4 Lakhs?

To invest in a Rs. 4 lakh fixed deposit, you must be an Indian citizen aged 18 or above. Certain financial institutions also permit Non-Resident Indians (NRIs) to open fixed deposit accounts.

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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.