What is the monthly interest on ₹25 lakh FD?

A fixed deposit (FD) of ₹25 lakhs can provide a steady monthly income, with interest rates starting from 7% p.a. The monthly interest depends on the rate and tenure chosen. Here’s what to know:

• Rate Range: Rates typically start from 7% per year, varying by tenures of typically 1–5 years. Some financial institutions may also offer longer tenures.
• Monthly Earnings: At 7.25% p.a., monthly interest on ₹25 lakhs would be approximately ₹15,104. At 7.75% p.a., it would be around ₹16,146 These payouts are credited directly to your repayment bank account, which must be verified during FD setup
• Total Interest: With non-cumulative fixed deposit of ₹25 lakhs at an interest rate of 7% p.a., monthly payouts over a 5-year tenure would amount to approximately ₹8.7 lakhs in total interest. Since monthly payout schemes do not compound, the returns remain fixed and predictable. For higher overall earnings, investors may consider cumulative FDs where interest is compounded quarterly and paid at maturity.
• Reliable Investment: FDs are generally low-risk investment options, ensuring that your ₹25 lakhs remain locked-in with fixed returns.
• Loan Availability: You can typically borrow about 75-90% of the FD amount for emergencies without closing it.

Compare rates from trusted financial institutions, check their financial ratings, and select a tenure that suits your needs.