Monthly Interest Rates for Rs. 40 lakh fixed deposit

Learn how much you can earn with Rs. 40 lakh fixed deposit.
Rs. 40 lakh FD
4 mins
18 January 2024

Fixed deposits (FDs) are a popular investment option for individuals looking for a secure way to earn steady returns. The interest rate of an FD depends on several factors, such as the amount invested, tenure, payout frequency, type of customer and the interest rates offered by financial institutions.

Let us explore the monthly interest rate on Rs. 40 lakh FD. By understanding the factors that affect FD rates. Investors can make informed decisions and choose the best investment option that aligns with their financial goals.

Benefits of investing in FD

  1. Fixed returns: The interest rate offered on FDs is pre-determined and is fixed for the entire tenure of the deposit. This makes it easy to plan your finances and know exactly how much return you will earn on your investment.
  2. Senior citizen benefits: Senior citizens may enjoy special interest rates on FDs, which are higher than the regular rates offered to other investors. Financial institutions like Bajaj Finance offer up to 0.25% higher interest on their FD for senior citizens.
  3. Low risk: FDs are a low-risk investment option, which makes them a good choice for conservative investors. However, it is important to understand that the returns you earn can be lower than other investments like equity or mutual funds.
  4. Liquidity: FDs offers high liquidity, which means you can withdraw your deposit easily as per your requirements. A nominal penalty may be charged for premature withdrawal of FDs. Some financial institutions also offer loan against FDs which mean you don’t need to prematurely break your FD.
  5. Diversification: Investing in fixed deposits can offer diversification to your overall investment portfolio. This is because FDs are less risky and offer stable returns when compared to other investment options such as stocks, or mutual funds. Diversifying your portfolio is essential in managing risks, and FDs can be used as a mechanism to achieve that objective.

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.

Types of FD

  1. Cumulative FD: It is a type of investment where the interest earned on the principal amount is reinvested into the FD. This results in compounded growth over the tenure of the deposit. Interest in a cumulative FD is not paid out periodically. Instead, both the principal amount and the accumulated interest are paid together at the end of the FD's maturity period.
  2. Non-cumulative FD: Investors receive periodic interest payments at regular intervals, which can be monthly, quarterly, half-yearly, annually, depending on the terms chosen. This type of FD is suitable for individuals who prefer a regular income stream from their investments rather than a lump sum at maturity. The flexibility of choosing the frequency of interest pay-outs makes non-cumulative FDs appealing to those with specific cash flow requirements.

How much monthly interest can you earn on Rs. 40 lakh FD?

Let's assume:

  • Principal Amount: Rs. 40 lakh
  • Annual Interest Rate: 8%
  • Type of FD: Non-Cumulative (Monthly interest pay-out)

The formula to calculate monthly interest is:

Monthly Interest = Principal Amount × Annual Interest Rate / 12

Using this formula:

Monthly Interest = 40,00,000 × 8% / 12

Monthly Interest = Rs. 26,666.67

Here the table showing how much interest you can earn on Rs. 40 lakh fixed deposit


Interest rate (p.a.)

Interest per month

Rs. 40 lakh


Rs. 20,000.00

Rs. 40 lakh


Rs. 21,666.67

Rs. 40 lakh


Rs. 23,333.33

Rs. 40 lakh


Rs. 25,000.00

Rs. 40 lakh


Rs. 26,666.67

Rs. 40 lakh


Rs. 28,333.33

Rs. 40 lakh


Rs. 30,000.00

Rs. 40 lakh


Rs. 31,666.67

Rs. 40 lakh


Rs. 33,333.33

Factors that influence FD rates

  1. Changes in repo rate: The repo rate set by RBI can impact FD rates. A higher repo rate usually leads to higher FD rates as financial institutions try to attract more funds from investors.
  2. Bank's liquidity needs: If a financial institution needs more funds to meet its lending requirements, it may increase FD rates to attract deposits. Conversely, if a bank has excess liquidity, it may lower FD rates.
  3. Competition: Market competition is another crucial factor that impacts FD rates. Financial institutions compete with each other by offering higher interest rates.
  4. Maturity period: FD rates often vary based on the duration of the fixed deposit. Generally, long-term deposits can offer higher interest rates.

What is Bajaj Finance Digital FD?

Bajaj Finance has recently launched a new FD type called “Bajaj Finance Digital FD”. This can be booked and managed online, only through Bajaj Finserv app and website. Bajaj Finance is offering one of the highest FD rates of up to 8.85% p.a.


Fixed deposits are a secure and trustworthy way to earn stable returns on investments. Knowing the monthly interest rates on Rs. 40 lakh FD investment is crucial. The interest rates offered by financial institutions can vary, which may affect your potential returns. Calculating monthly interest shows how much income can be earned based on the interest rate offered. When investing in FDs, it is essential to consider the tenure, interest rates offered, maturity amount, penalties. It is recommended to do thorough research before investing.


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
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.