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While parking funds in financial instruments such as fixed deposits, bonds, and more, you can expect to attract periodic inflows at predetermined rates. This is considered to be the return on the money invested or deposited, also called interest.

For investors, the added interest on the principal investment amount signifies its appreciated value. This makes it useful to understand how this interest is calculated. There are three ways to calculate interest, namely simple interest, compound interest, and equation.

Each of the interest calculation 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.

Read on to know more about the interest calculation of ₹2 interest for ₹50,000 per month when booking a fixed deposit.

## Calculation of ₹2 Interest For ₹50,000 Invested in an FD: Formula with an Example

Trying to figure out the monthly interest on your investment does not have to be complicated. You can conveniently do so using one of the many interest calculation tools online.

However, the calculation of ₹2 interest for ₹50,000 per month allows for an easy understanding of the concept. It also aids in weighing the options of a monthly interest payout vs. a yearly interest payout.

Here are the three ways to estimate the monthly earnings for ₹2 interest for ₹50,000 invested in an FD.

 Calculation Method Formula Illustration ‘₹2 Interest for ₹50,000 Per Month’ Method An interest of ₹2 per month denotes an earning of ₹2 per ₹100, which is 2% per month.   Hence, the yearly interest rate is 2 x 12 = 24%. To calculate ₹2 interest for ₹50,000 per month, use the formula    Monthly interest payout = 50,000 x 2/100 = ₹1,000   The total interest earnings on ₹50,000 per month, for a year, is ₹12,000. Simple Interest I = p × r × t   Here, I = Interest amount p = Principal amount r = Interest rate t = Investment tenor To calculate the yearly interest payout:   50,000 * 24/100 * 1 = ₹12,000   Monthly interest: 2,000/12 = ₹1,000 Compound Interest [P*(1 + R)^nt] - P   Here, P = Principal amount R = Rate of interest n = Number of periods t = Time period To calculate the ₹2 interest for ₹50,000,    [50,000 X (1+24/100)^1*1] - 50,000 = ₹12,000   Monthly interest payout: 12,000 / 12 = ₹1,000

## ₹2 Rupees Interest for ₹50,000 per month

The monthly interest receivable on an investment of ₹50,000 is ₹1,000, regardless of the calculation method used. Therefore, the ₹2 interest for ₹50,000 per month formula is a simple calculation method used to arrive at the value of the interest receivable each month.

Once you understand the concept, you can easily compare the return rates on all your investments. While you can use the formulas listed above, manual calculations can lead to mistakes, especially when you are comparing multiple FD terms.

In such cases, it may be better for you to rely on the Bajaj Markets FD calculator. This digital tool offers accurate and instant results with just a few inputs from you regarding:

• Investment amount

• Tenor

• Applicable interest rate

This way, you can forecast your FD interest earnings and make smarter investment decisions. Once you decide on an issuer, you can book an FD with ease online on Bajaj Markets.

## Disclaimer

The information provided by BFDL herein above is related to the Non-Partnered Banks/ NBFCs and is just for the purpose of information and under no circumstances the information provided hereinabove is intended to be source of advice or recommending any financial investment advice or endorsement of any sort.

The information including interest rates with regard to fixed deposit, provided on this website is gathered through publicly available sources over the internet and is considered as accurate and reliable to the best of our knowledge. BFDL disclaims any responsibility or liability regarding inaccuracies, omissions, mistakes etc. as well as offers by the Non-Partnered Banks. The use of information set out is entirely at the User’s own risk and User should exercise due care prior taking of any decision, on the basis of information mentioned hereinabove. You are advised to visit/ contact the respective Banks/ NBFCs to verify the information before making any investment or opening an account. Further, BFDL does not undertake any responsibility or liability to update this information. YOU ARE SOLELY RESPONSIBLE FOR ANY LIABILITY OR DAMAGE YOU INCUR THROUGH ACCESS TO OR USE OF THE SITE OR SUCH INFORMATION OR MATERIALS EXCEPT WHERE THE LAWS AND REGULATIONS OF A PARTICULAR JURISDICTION CONCERNING WARRANTIES CANNOT BE WAIVED. Additionally, display of any trademarks, tradenames, logo and other subject matters of intellectual property owners. Display of such Intellectual Property along with the related product information does not imply BFDL’s partnership with the owner of the Intellectual Property of such products.

## FAQs on How to Calculate ₹2 Interest for ₹50,000 Per Month

Depending on prevailing FD rates, your interest can be calculated using any of the three methods: simple interest, compound interest or equation methods.For instance, say you are depositing ₹50,000 for a tenor of 1 year. Your interest rate will vary depending on the lender. Using the simple interest method for an annual rate of 6%, your return will be ₹3,000.

A ₹2 interest is 2% interest for every ₹100 invested.

Some examples of interest that you get from investments include the gains from savings accounts, FDs, bonds, and more. This interest is considered as income and is taxed as per your tax slab.

Yes, interest income is taxable. However, there are a few exceptions depending on the limits and sources of income.

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Earn interest up to 8.60% p.a. by investing in a Bajaj Finance Fixed Deposit | Rated CRISIL AAA/ STABLE and [ICRA]AAA(stable)    