Monthly Interest Rates for Rs. 50 lakh Fixed Deposit

Understand how much interest you can earn on Rs. 50 lakh FD.
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Rs. 50 lakh FD
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4 mins
14 August 2024

Fixed Deposits (FDs) are a reliable choice for investors seeking stability and fixed returns. In this article, we will cover the different types of fixed deposits, advantages of fixed deposits, and understand how much monthly interest can be earned by investing Rs. 50 lakh in an FD. Understanding the nuances of FDs can be key to making informed financial decisions.

What is Fixed Deposit (FD)?

A fixed deposit is a financial instrument where an individual invests a lump sum amount with a financial institution (bank or NBFC) for a fixed tenure. In return, the investor receives a predetermined fixed interest rate, providing a secure and predictable source of income.

Benefits of investing in FD

  1. Safety and stability: FDs are known for their safety and stability, making them a preferred choice for risk-averse investors. The principal amount remains intact, and the interest earned is fixed, offering a sense of financial security.
  2. Flexible tenure: FDs offer flexibility in choosing the tenure of the investment. Investors can opt for short-term or long-term deposits based on their financial goals and liquidity needs. Bajaj Finance offers flexible tenure from 12 to 60 months on their FD.
  3. Loan against FD: Many financial institutions like Bajaj Finance allow investors to take loan against their FDs. This feature can be beneficial during financial emergencies, as it provides a source of liquidity without breaking the FD.

Pro tip

Enjoy higher interest rate with Bajaj Finance Digital FD. Unlock returns of up to 8.65% p.a. by investing for 42 months via website and app.

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Types of FD

1. Cumulative

  • In cumulative FDs, the interest earned is reinvested which leads to compounded growth.
  • The total amount (principal + interest) is paid at the end of the tenure.

2. Non-cumulative

  • Non-cumulative FDs provide regular interest pay-outs, offering a steady income stream.
  • Interest can be paid monthly, quarterly, half-yearly or annually.

Bajaj Finance offers both cumulative and non-cumulative FD options. Here is a table showing how much interest you can earn if you invest Rs. 50 lakh in Bajaj Finance FD.

Cumulative FD

Investor category

FD amount

Investment tenure

Interest rate

Total interest payout

Customers below 60 years

Rs. 50 lakh

60 months

8.10% p.a.

Rs. 23,80,716

Senior citizens

Rs. 50 lakh

60 months

8.35% p.a.

Rs. 24,66,457

 

Non-cumulative FD

Investor category

FD amount

Investment tenure

Interest rate

Total interest payout

Customers below 60 years

Rs. 50 lakh

60 months

7.81% p.a.

Rs. 19,52,500

Senior citizens

Rs. 50 lakh

60 months

8.05% p.a.

Rs. 20,12,500


How much monthly interest can be earned on Rs. 50 lakh FD?

The monthly interest on a Rs. 50 lakh FD depends on various factors, primarily the interest rate and the type of FD chosen. For instance, with an interest rate of 8.30% annual interest rate, the monthly interest can be Rs. 34,583.33

FD monthly interest pay-out for deposits of Rs. 50 lakh:

 

Amount

Interest rate (p.a.)

Interest per month

Rs. 50 lakh

6%

Rs. 25,000.00

Rs. 50 lakh

6.50%

Rs. 27,083.33

Rs. 50 lakh

7%

Rs. 29,166.67

Rs. 50 lakh

7.50%

Rs. 31,250.00

Rs. 50 lakh

8%

Rs. 33,333.33

Rs. 50 lakh

8.50%

Rs. 35,416.67

Rs. 50 lakh

9%

Rs. 37,500.00

Rs. 50 lakh

9.50%

Rs. 39,583.33

Rs. 50 lakh

10.00%

Rs. 41,666.67


Benefits of investing in monthly interest plan

  1. Regular Income: Monthly interest plans provide a steady income stream, making them suitable for individuals looking for regular pay-outs to meet their financial needs.
  2. Liquidity: Monthly interest pay-outs ensure liquidity, which allows investors to meet monthly expenses without breaking the FD.
  3. Financial planning and budgeting: With a predictable monthly income, financial planning becomes simpler. It helps in budgeting and ensures a steady cash flow, enabling you to manage your expenses and savings more efficiently.

Conclusion

Fixed deposit remain a fundamental investment choice for those seeking stability and assured returns. The flexibility in tenure, safety, and the option to choose between cumulative and non-cumulative FDs makes them a versatile instruments. Understanding the monthly interest potential on a significant investment of Rs. 50 lakh FD allows investors to make informed decisions based on their financial goals and preferences. Whether one seeks a lump sum return at the end of the tenure or a regular income stream, FDs continue to offer a reliable avenue for conservative investors.

Frequently asked questions

What is the Digital FD offered by Bajaj Finance?

Bajaj Finance has launched a new FD type called "Bajaj Finance Digital FD" for a period of 42 months. Bajaj Finance is providing one of the highest interest rates of up to 8.65% p.a. for senior citizens and for the customers below the age of 60 they are providing up to 8.40% p.a. The Digital FD can be booked and managed only through the Bajaj Finserv website or app.

Are there any penalties for withdrawing the principal amount before the maturity of the fixed deposit?

Withdrawing the principal amount prematurely might attract penalties or loss of interest. Its important check terms and conditions before investing.

Can I choose the frequency of interest payouts on fixed deposit investment?

Yes, depending on the type of fixed deposit, you can choose the frequency of interest payouts, which may include monthly, quarterly, half-yearly, annually or at maturity.

Videos on Fixed Deposit

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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.