If you’ve been thinking about parking your money safely and growing it steadily, Fixed Deposits (FDs) are back in the spotlight. Right now, you can earn a tremendous interest on FD and make a profit of ₹1,40,000 just by investing for 4 years and 7 months. Sounds too good to be true? It’s actually possible — and this article will explain exactly how.
Tremendous Interest on FD
| Feature | Details |
|---|---|
| Investment Scheme | Bank or Post Office Fixed Deposit |
| Investment Tenure | 4 years and 7 months (55 months) |
| Expected Profit | ₹1,40,000 |
| Estimated Investment | Around ₹4,00,000 |
| Expected Interest Rate | 7.25% to 7.5% p.a. (Quarterly Compounded) |
| Interest Calculation | Compound Interest |
| Is it safe? | Yes, FDs are one of the safest investment options in India |
| Best FD Options (2025) | HDFC Bank, ICICI Bank, SBI, Axis Bank, India Post |
In a world of market volatility, Fixed Deposits remain a solid, secure, and rewarding investment option. If you have ₹4 lakh to spare and 55 months to wait, you can easily make a ₹1,40,000 profit without any headaches, risks, or sleepless nights.
Whether you’re a young professional building a safety net or a retiree looking for stable returns, this strategy works across age groups. Just remember to compare interest rates, understand compounding, and plan with taxes in mind.
What Is a Fixed Deposit and Why Is It Popular?
A Fixed Deposit (FD) is a financial instrument offered by banks and post offices where you invest a lump sum for a fixed period and earn interest on it. Unlike savings accounts, FDs offer higher interest rates and guaranteed returns.
Why do Indians love FDs?
- It’s safe — capital is protected.
- Interest is fixed and predictable.
- No stock market risks.
- Easy to start with low minimum investment (₹1,000 or ₹5,000 in many banks).
Whether you’re planning for your child’s education, your retirement, or simply want a safe parking space for your hard-earned money, an FD is a no-nonsense way to earn passive income.
see also: Term Deposit: Know All the Benefits
How You Can Earn ₹1,40,000 in 4 Years and 7 Months
Let’s break down how this works with real math.
Scenario:
- Investment amount: ₹4,00,000
- Interest rate: 7.25% p.a. (compounded quarterly)
- Tenure: 4 years and 7 months (i.e., 55 months)
- Maturity Amount: ~₹5,40,000
- Profit (Interest earned): ~₹1,40,000
This return is possible if you choose banks or post offices offering 7.25% or higher interest. Always confirm current FD interest rates on the official websites of the banks or from the RBI FD Rate Tracker.
Which Banks and Schemes Are Offering the Best FD Interest Rates in 2025?
Here are some of the top performers in the FD space right now (as of March 2025):
HDFC Bank – 7.35% p.a.
- Tenure: 35 to 55 months
- Minimum Investment: ₹5,000
ICICI Bank – 7.25% p.a.
- Tenure: 15 months to 2 years
- Offers monthly and quarterly compounding
SBI (State Bank of India) – 7.1% p.a.
- Tenure: Up to 5 years
- Government-backed security
Axis Bank – 7.2% p.a.
- Tenure: 15 to 60 months
- Flexible payout options
Post Office Time Deposit (POTD) – 7.5% p.a.
- Tenure: 5 Years (but 4.5 years can be adjusted with less compounding)
- Guaranteed by Government of India
Step-by-Step Guide: How to Open a Fixed Deposit and Get the Maximum Profit
Step 1: Choose the Right Bank or Scheme
Pick a bank or post office offering 7.25% or higher for your desired tenure (4 years and 7 months). Compare online or visit branches.
Step 2: Decide Your Investment Amount
In this scenario, to earn ₹1,40,000 in interest, you’d need to invest around ₹4,00,000. You can also start with less and scale up later.
Step 3: Select Compounding Frequency
Choose quarterly compounding – it helps you earn more as interest gets added every 3 months.
Step 4: Complete KYC
Submit:
- Aadhaar Card
- PAN Card
- Bank account details
- Photograph
Step 5: Monitor and Reinvest
After 55 months, either:
- Reinvest your ₹5,40,000
- Use the funds for goals like education, marriage, or emergency backup
Tax Implications on FD Interest
- Interest earned above ₹40,000 per year (₹50,000 for senior citizens) is subject to TDS (Tax Deducted at Source).
- TDS is 10% if PAN is submitted, else 20%.
- You can submit Form 15G/15H to avoid TDS if your total income is below taxable limits.
Pro Tip: Keep an eye on interest credit dates and check Form 26AS for accuracy.
Is It Safe to Invest ₹4 Lakh in FD?
Yes! FDs are among the safest investment options in India.
- All scheduled commercial banks in India are regulated by the Reserve Bank of India (RBI).
- Bank deposits up to ₹5 lakh (including interest) are insured by DICGC (Deposit Insurance and Credit Guarantee Corporation).
- Post Office FDs are backed by the Government of India — considered the most secure.
see also: Loan Against FD: Interest Rates & Full Guide
FAQs About FD Profit of ₹1,40,000 in 55 Months
Q1. How much should I invest to earn ₹1,40,000 in interest?
You should invest around ₹4,00,000 at an interest rate of 7.25% with quarterly compounding.
Q2. Which is better – bank FD or Post Office FD?
Both are good. Post Office FDs offer government-backed security, while banks may provide slightly higher flexibility and online access.
Q3. Can senior citizens get more interest?
Yes! Many banks offer additional 0.25% to 0.75% to senior citizens. For example, HDFC and SBI have exclusive FD rates for seniors.
Q4. Can I break my FD before 55 months?
Yes, but banks usually charge a small penalty (0.5% to 1%) on the interest rate. Plan accordingly.
Q5. Is there a monthly income option from FD?
Absolutely. You can choose a Monthly Income Scheme (MIS) from banks or the Post Office and get regular payouts.
