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
- 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.
- Liquidity: Monthly interest pay-outs ensure liquidity, which allows investors to meet monthly expenses without breaking the FD.
- 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.
Bajaj Finserv App for All Your Financial Needs and Goals
Trusted by 50 million+ customers in India, Bajaj Finserv App is a one-stop solution for all your financial needs and goals.
You can use the Bajaj Finserv App to:
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