Fixed deposits have long been considered a safe and reliable investment choice for Indian savers. They offer guaranteed returns, peace of mind, and flexibility in terms of tenure. But what if you could earn ₹89,000 in just 4 months by placing your money in a fixed deposit? That’s precisely what this post is about.
With the right strategy, timing, and bank, it’s possible. In this post, we’ll break down how this can be done with Bandhan Bank, a well-known name in India’s private banking space.
Why Bandhan Bank?
Bandhan Bank, although relatively younger than other private sector banks, has earned trust through its customer-centric approach, competitive interest rates, and tailored financial products. One of its most attractive offerings is its fixed deposit schemes, which cater to both short-term and long-term investors. Their short-tenure FDs offer interest rates that are often higher than those provided by larger banks for similar periods.
Unlike some financial instruments that come with high risk, Bandhan Bank’s fixed deposits are backed by the security of a scheduled commercial bank regulated by the Reserve Bank of India. Moreover, deposits up to ₹5 lakh are insured by the Deposit Insurance and Credit Guarantee Corporation (DICGC), ensuring an additional layer of safety.
How Fixed Deposits Work
A fixed deposit is essentially an investment tool where you park a lump sum of money with a bank for a fixed period, at a predetermined interest rate. The longer the duration, the higher the interest rate in most cases. The interest can be paid out monthly, quarterly, annually, or at maturity, depending on the scheme you choose.
Bandhan Bank offers fixed deposits with tenures starting from 7 days to 10 years. For the purpose of this post, we focus on a 4-month or approximately 120-day deposit. The reason is simple: many investors today prefer short-term instruments that offer high liquidity and quick returns, especially in uncertain markets.
Earning ₹89,000 in Just 4 Months: The Math
Let’s talk numbers. To make ₹89,000 in just 4 months from a fixed deposit, you’ll need to invest a large enough principal at a competitive interest rate. Suppose Bandhan Bank is currently offering an interest rate of around 7.85% per annum for short-term deposits (as of the latest update). For simplicity, we’ll use this figure for our calculation.
Now, let’s assume you’re investing a principal amount of ₹17 lakh for 4 months at 7.85% per annum. Since interest for fixed deposits is usually calculated on a simple interest basis for such short tenures, the math looks like this:
Interest = (Principal × Rate × Time) / 100
Interest = (17,00,000 × 7.85 × 4/12) / 100
Interest = ₹89,083 (approximately)
This is how you can earn ₹89,000 in just 4 months. The exact figure may vary slightly depending on the day the deposit is made, interest payout option, and whether the bank uses simple or compound interest for that tenure. However, the calculation gives a strong and realistic estimate.
Is It Really Certain?
When it comes to financial returns, the word “certain” is often used carefully. But with a fixed deposit at a regulated Indian bank like Bandhan, the term holds true. The return is fixed at the time of deposit, unaffected by market fluctuations. Unless you withdraw prematurely, which might incur a penalty or lower interest rate, the maturity amount is guaranteed.
This level of certainty is hard to come by in other popular options like mutual funds, equity, or cryptocurrencies. These may promise higher returns, but none can offer a fixed, guaranteed sum within a specific time frame the way a fixed deposit does.
Tax Implications to Consider
While earning ₹89,000 in 4 months sounds attractive, it’s also important to consider the tax angle. The interest earned on fixed deposits is fully taxable under the Income Tax Act. It will be added to your total income and taxed according to your income slab. If your total income exceeds the taxable limit, the bank may deduct Tax Deducted at Source (TDS) at 10% if your PAN is available. If not, TDS may be deducted at 20%.
To avoid unexpected deductions, you can submit Form 15G or 15H (if eligible), especially if your income is below the taxable limit. Alternatively, you can adjust your annual financial planning to minimize tax burden or choose quarterly payout options to stagger the income.
Steps to Open a Fixed Deposit with Bandhan Bank
Opening a fixed deposit with Bandhan Bank is straightforward. You can visit a branch or open it online through their mobile app or internet banking platform. If you’re an existing customer, the process takes just a few minutes.
You’ll need basic KYC documents like PAN card, Aadhaar, and a passport-size photograph. After depositing the principal, you’ll receive a fixed deposit receipt or confirmation slip with all details including tenure, rate of interest, maturity date, and maturity amount.
Bandhan Bank also offers the option to automatically renew the FD on maturity, or transfer the maturity proceeds directly into your linked savings account. You can even set up SMS or email alerts for timely updates.
Should You Go for It?
The decision to invest in a fixed deposit depends on your financial goals. If you’re looking for a short-term, low-risk investment that offers guaranteed returns, Bandhan Bank’s fixed deposits are a good fit. Earning nearly ₹90,000 in just 4 months without lifting a finger is an excellent passive income strategy for those with idle funds.
It’s especially ideal for risk-averse investors, retirees, or anyone saving for an upcoming expense like a wedding, vacation, or major purchase. Given the short tenure, your capital isn’t locked away for too long, allowing for better liquidity compared to long-term schemes.
Final Thoughts
In an era where market volatility and economic uncertainty have become the norm, locking in a guaranteed return through a fixed deposit is a smart move. While ₹89,000 in 4 months might sound like an extraordinary claim, it’s actually very achievable with the right amount of capital and a well-timed investment in Bandhan Bank’s fixed deposit scheme.
Whether you’re a seasoned investor or a first-time depositor, fixed deposits offer a comforting blend of safety and return. With thoughtful planning and an understanding of the numbers, even short-term investments like a 4-month FD can deliver impressive outcomes. And in the case of Bandhan Bank, the numbers speak for themselves.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Interest rates and returns may vary. Please consult with Bandhan Bank or a financial advisor before making any investment decisions. The calculations provided are illustrative and may not reflect actual outcomes.