Monthly Interest on ₹4 Lakh Fixed Deposit

Posted on Friday, February 7th, 2025 | By IndusInd Bank

Fixed deposits (FDs) have long been a cornerstone of investment strategies. This is especially true for individuals seeking stability and guaranteed returns. In a country like India, most individuals prioritize financial security over other goals. Hence, fixed deposits serve as a reliable instrument for risk-averse investors. With numerous banks offering competitive fixed deposit interest rates, it is essential to understand the potential returns on your investment. This article explores the monthly interest earnings on a ₹ 4 lakh fixed deposit.

Understanding Fixed Deposits

Fixed deposits are financial products offered by banks and non-banking financial companies (NBFCs) that provide investors with a higher interest rate compared to regular savings accounts. The funds deposited in an FD cannot be withdrawn before maturity without incurring a penalty, making them an attractive option for those seeking steady income without exposures to market volatility.

Interest Rates

Interest rates on fixed deposits vary across financial institutions and are influenced by factors such as the duration of the deposit and prevailing economic conditions. As of the latest data, banks offer competitive interest rates for their fixed deposit schemes. Although specific rates can vary across banks and may depend on the tenure and deposit amount.

Calculating Monthly Interest on ₹ 4 Lakh Fixed Deposit

To determine the monthly 4 lakh fixed deposit interest, it is important to consider the applicable interest rate and the tenure. Let’s assume an interest rate of 7.75% per annum with a tenure of 2 years for simplicity.

Step-by-Step Calculation

1. Annual Interest Calculation: – H3

Formula: Annual Interest=Principal×Tenure in Years×(Rate of Interest/100​)

Based on the formula, the calculation for annual interest for a ₹ 4 lakh fixed deposit with a 6.5% interest rate for 1 year will be:

2. Monthly Interest Calculation: – H3

Formula: (Annual Interest)/12

Based on this formula, the calculation for monthly interest for ₹4 lakh fixed deposit will be:

Monthly Interest = (₹31,000)/12≈₹ 2,583.33

Therefore, with a 7.75% annual interest rate, you could earn approximately ₹2,583.33 of ₹ 4 lakh FD interest per month. This interest will get credited to your account or paid at the maturity based on the terms of the deposit.

You can use a Fixed Deposit Calculator to understand how much you will receive back compared to how much you invest.
If have ₹ 4 lakhs, you should invest it into a fixed deposit account to ensure it is secure and can grow. To enjoy such financial security and growth, consider IndusInd Bank Fixed Deposits.

Why Choose IndusInd Bank for Fixed Deposits?

IndusInd Bank distinguishes itself in several ways when it comes to fixed deposits:

1. Competitive Interest Rates: IndusInd Bank offers some of the most competitive interest rates in the market at around 7.75% p.a. Rates can change over time. Click here to know the updated fixed deposit interest rates.

2. Flexible Tenure Options: The bank provides a variety of tenure options between 7 days to 10 years, allowing you to choose a period that aligns with your financial goals.

3. Auto Renewal: IndusInd Bank allows you to auto-renew your FD once it has matured. You can invest the interest you have earned along with the original principal into another Fixed Deposit. This ensures that the money you have invested compounds and continue to grow further.

4. Multiple Interest Payment Options: If you want to have more control on the returns that a Fixed Deposit gives you, IndusInd Bank allows you to choose when you receive your earned interest. You can choose to receive your interest in parts monthly, quarterly, half-yearly, yearly. You can also choose to receive it altogether at maturity.

5. Safety and Reliability: IndusInd Bank, with its robust financial background, assures the safety of your principal amount, making it a reliable choice for investors seeking stability. The bank’s longstanding reputation and adherence to regulatory standards further support investor confidence.

IndusInd Bank is known for its customer-centric approach, offering seamless and hassle-free services to its clients. Whether you’re opening a fixed deposit online or visiting a branch, the bank ensures a smooth experience. The user-friendly digital platforms allow customers to manage their deposits conveniently, track interest earnings, and make informed decisions based on real-time data.

Also Read: How to Calculate Fixed Deposit Returns A Simple Guide

Conclusion

Investing in a fixed deposit with IndusInd Bank can be a wise decision for those seeking a balance of safety and returns. With a ₹ 4 lakh investment, you can expect a steady monthly income, which can supplement other income streams or contribute to achieving financial goals. IndusInd Bank, with its customer-centric services and attractive interest rates, could be the ideal partner in your investment journey.

Book a Fixed Deposit with IndusInd Bank today!

Disclaimer: The information provided in this article is generic and for informational purposes only. It is not a substitute for specific advice in your circumstances. Hence, you are advised to consult your financial advisor before making any financial decision. IndusInd Bank Limited (IBL) does not influence the views of the author in any way. IBL and the author shall not be responsible for any direct/indirect loss or liability incurred by the reader for making any financial decisions based on the contents and information.