Monthly Interest On ₹ 25 Lakh Fixed Deposit

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

Fixed deposits (FDs) have long been favoured by investors seeking stability and assured returns. For risk-averse individuals, fixed deposits present an ideal investment option, offering higher interest rates compared to regular savings accounts. This article delves into the potential monthly interest earnings on a ₹ 25 lakh fixed deposit.

Understanding Fixed Deposits

Fixed deposits are financial instruments provided by banks and non-banking financial companies (NBFCs). They offer a higher interest rate than standard savings accounts. With an FD, you deposit funds and let them stay until maturity. For this reason, fixed deposits are appealing choice for those who prefer steady income without risking their principal to market risks.

Interest Rates

Interest rates on fixed deposits vary among financial institutions and are influenced by factors such as the deposit’s tenure and the prevailing economic conditions. As of the latest data, banks offer competitive interest rates for fixed deposit schemes. While specific rates differ between banks, they also depend on the tenure and deposit amount.

Calculating Monthly Interest on a ₹ 25 Lakh Fixed Deposit

To determine a ₹ 25 lakh fixed deposit’s interest per month, we need 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

Annual Interest Calculation:

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

Based on the formula, the calculation for annual interest on a ₹ 25 lakh fixed deposit with a 7.75% interest rate for 1 year will be:

Annual Interest= ₹25,00,000 × 2 × 7.75/100 = ₹1,93,750 per year

2. Monthly Interest Calculation:

Formula: Monthly Interest= (Annual Interest)/12

Based on this formula, the calculation for a ₹ 25 lakh FD’s monthly interest will be:

Monthly Interest = ₹1,93,750/12 ≈ ₹16,145.34

Therefore, with a 7.75% annual interest rate, you could earn approximately ₹ 16,145.34 per month on your ₹25 lakh FD interest. This interest will be credited to your account or paid at the maturity based on the terms of the deposit.

Using a Fixed Deposit Calculator can help you understand the returns compared to your investment just like this example. If you have ₹ 25 lakh saved, investing in a fixed deposit account can secure your funds and foster growth. To achieve financial security and growth, consider IndusInd Bank Fixed Deposits.

Why Choose IndusInd Bank for Fixed Deposits?

IndusInd Bank stands out in several ways when it comes to fixed deposits:

• Competitive Interest Rates: IndusInd Bank offers some of the market’s most competitive FD interest rates, around 7.75% p.a. Rates can change over time, so it is best to check for updated rates. You can do so here.

• Flexible Tenure Options: The bank provides various tenure options ranging from 7 days to 10 years, allowing you to align the investment period with your financial goals.

• Auto Renewal: IndusInd Bank offers an auto-renewal option for your FD upon maturity, allowing the interest earned and original principal to be reinvested for further growth.

• Multiple Interest Payment Options: IndusInd Bank lets you choose your interest payment frequency—monthly, quarterly, half-yearly, yearly, or at maturity—offering flexibility in managing your returns.

• Safety and Reliability: With a strong financial background, IndusInd Bank assures the safety of your principal, making it a trustworthy option for stability-seeking investors. The bank’s reputation and adherence to regulatory standards further enhance investor confidence.

IndusInd Bank is renowned for its customer-centric approach, providing seamless and hassle-free services. Whether opening a fixed deposit online or at a branch, the bank ensures a smooth experience. Its user-friendly digital platforms enable customers to manage deposits conveniently, track interest earnings, and make informed decisions based on real-time data.

Also Read: Comprehensive Guide On How To Calculate Fixed Deposit Interest Rates

Conclusion

Investing in a fixed deposit with IndusInd Bank can be a prudent choice for those seeking a balance of safety and returns. With a ₹ 25 lakh investment, you can expect a steady monthly income to supplement other income streams or help achieve financial goals. Always stay updated with the latest interest rates and consider consulting a financial advisor to tailor investments according to your needs. Even after you have decided on the specifics of your investment, use an FD calculator to get an idea of your returns.

IndusInd Bank, with its customer-centric services and attractive interest rates, could be your ideal partner in this investment journey. As you plan your financial future, consider the stability and reliability that IndusInd Bank’s fixed deposits can add to your portfolio.

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.