Calculate ₹2 Monthly Interest for ₹1 Lakh FD

Fixed deposits are favoured investments for a reason. The interest income is fixed and regular, and, in most cases, higher than the interest you get from savings accounts. However, the interest calculation differs based on monthly, quarterly, bi-annual, and yearly interest payouts. 

 

For investors, a solid understanding of how to calculate the interest receivable is very useful. It allows for easy comparison of returns based on FD tenors, interest rates, and other terms. For monthly interest payouts, you can calculate returns using three methods.

 

These are the simple interest, compound interest, and equation methods. Each of these formulas can be used to arrive at the same monthly interest payout for the same investment value. However, interest can also be calculated on a quarterly, bi-annual, or annual basis.

 

Know more about interest calculation aided by a concept illustrating ₹2 interest for ₹1 Lakh per month invested in an FD.

To understand how FD interest is calculated, it is useful to employ the ₹2 interest for ₹1 Lakh method. In this method, consider that your investment is effectively generating a return of 2% per month.  

Here are three ways to estimate the monthly earnings for ₹2 interest for ₹1 Lakh.

The calculation of compound interest is more layered, as it takes into account the number of times the interest is compounded. This amount is then added to the initial principal, generating higher interest. 

The total interest per month that you can receive from an FD of ₹1 Lakh yielding ₹2 interest per month is ₹2,000, regardless of the calculation method you employ. Using this simple calculation method, you can arrive at the exact value of FD interest you are due to receive each month. 

 

If you are comparing numerous FD plans with different tenors and FD interest rates, manual calculations can be tiring. To simplify your computation, you can make use of online interest calculation tools. The Bajaj Markets Fixed Deposit interest calculator is one such digital tool you can rely on.

It helps you make quick and accurate calculations. All you need to do is enter your FD investment amount, choose your maturity timeline, and interest rate. On Bajaj Markets browse from FD issuers and get started with an FD right away.

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