While investing in an FD, you will be offered various interest payout intervals, such as monthly, quarterly, and annual payouts. Depending on your financial obligations, it’s best to choose an option that helps you meet these needs .
On choosing a monthly interest payout option, you could receive lucrative returns that could be routed to pay-off certain expenses. To understand this better, here’s an example. If you invest a sum of ₹2 Lakhs in an FD at 7% for a tenor of 5 years, it can provide you with an interest of over ₹80,000.
Read on to learn about the applicable interest rates offered by various banks and NBFCs in the following sections.
The table below indicates the monthly interest payout on a ₹2 Lakh fixed deposit you could earn across different banks and NBFCs for a tenor of 5 years:
Bank/NBFC/HFC |
Non-Senior Citizen (p.a.) |
Monthly Interest Payout |
Senior Citizen (p.a.) |
Monthly Interest Payout |
Bajaj Finance Ltd. |
8.05% |
₹ 1,342 |
8.30% |
₹ 1,383 |
PNB Housing Finance Ltd. |
7.39% |
₹ 1,232 |
7.69% |
₹ 1,282 |
Mahindra Finance Ltd. |
8.05% |
₹ 1,342 |
8.30% |
₹ 1,383 |
LIC Housing Finance |
7.75% |
₹ 1,292 |
8.00% |
₹ 1,333 |
Shriram Finance |
8.27% |
₹ 1,378 |
8.77% |
₹ 1,462 |
ICICI Bank |
7.00% |
₹ 1,167 |
7.50% |
₹ 1,250 |
HDFC Bank |
7.00% |
₹ 1,167 |
7.50% |
₹ 1,250 |
IDFC First Bank |
7.00% |
₹ 1,167 |
7.50% |
₹ 1,250 |
Axis Bank |
7.00% |
₹ 1,167 |
7.75% |
₹ 1,292 |
IndusInd Bank |
7.25% |
₹ 1,208 |
8.00% |
₹ 1,333 |
YES Bank |
7.25% |
₹ 1,208 |
8.00% |
₹ 1,333 |
Jana Small Finance Bank |
7.25% |
₹ 1,208 |
7.75% |
₹ 1,292 |
Kotak Mahindra Bank |
6.20% |
₹ 1,033 |
6.25% |
₹ 1,042 |
SBI |
6.50% |
₹ 1,083 |
7.50% |
₹ 1,250 |
AU Small Finance Bank |
7.25% |
₹ 1,208 |
7.75% |
₹ 1,292 |
*Disclaimer: The above-mentioned rates are effective as of 20 October 2023, and are subject to change at the issuer’s discretion.
Here is an estimate of the monthly interest payout you would receive on a ₹2 Lakh fixed deposit at different interest rates.
Deposit Amount |
Interest Rate (p.a.) |
Monthly Interest Payout |
₹2 Lakh |
3.00% |
₹ 500 |
₹2 Lakh |
3.50% |
₹ 583 |
₹2 Lakh |
4.00% |
₹ 667 |
₹2 Lakh |
4.50% |
₹ 750 |
₹2 Lakh |
5.00% |
₹ 833 |
₹2 Lakh |
5.50% |
₹ 917 |
₹2 Lakh |
6.00% |
₹ 1,000 |
₹2 Lakh |
6.50% |
₹ 1,083 |
₹2 Lakh |
7.00% |
₹ 1,167 |
₹2 Lakh |
7.50% |
₹ 1,250 |
₹2 Lakh |
8.00% |
₹ 1,333 |
₹2 Lakh |
8.50% |
₹ 1,417 |
₹2 Lakh |
9.00% |
₹ 1,500 |
₹2 Lakh |
9.50% |
₹ 1,583 |
₹2 Lakh |
10.00% |
₹ 1,667 |
Now that you have a better understanding of the potential returns you could earn on a ₹2 Lakh FD, choose an issuer of your choice. On Bajaj Markets, you can select from multiple FD issuers who offer competitive interest rates.
Moreover, you can also make use of the FD interest calculator to determine the potential returns you could earn on your fixed deposit investment.
Check Monthly Interest Rates on Your Fixed Deposits |
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Banks and NBFCs offer varied amounts of monthly interest on a ₹2 Lakh fixed deposit ranging from 2.50% to as high as 7.77%.
For a senior citizen, the interest rate on a ₹2 Lakh fixed deposit is higher as compared to a regular individual. Most banks and NBFCs offer an additional interest rate of 50 bps over the regular fixed deposit interest rates for senior citizens.
Yes, the interest on a ₹2 Lakh FD every month depends on the term you choose for your fixed deposit. The longer the term of your fixed deposit, the higher will be the fixed deposit interest for an investment of ₹2 Lakhs.
While depositing your savings in a fixed deposit you need to keep in mind that the interest generated on FDs is taxed. If the interest amount on your fixed deposit reaches a certain threshold, TDS is deducted at the source.
TDS (Tax Deducted at Source) is a sort of tax collected by the Income Tax Department of the Government of India from the source of income.
For FDs, the tax is deducted at the source when the money is deposited into your bank account. You will also be issued a TDS certificate or Form 26AS by the Government once such a deduction has been made.
You will require the following documents to open your fixed deposit of ₹2 Lakhs:
Identity Proof: Passport, Voter ID card, Aadhar Card, Photo Ration Card, Government ID Card, or driving licence
Address Proof: Passport, Electricity Bill, Telephone Bill, or bank statement with cheque
Signature Proof: Passport, PAN Card, or driving licence
Also, if you are a senior citizen who wants to invest in ₹2 Lakh fixed deposit you will be required to submit some additional documents such as your age proof along with Form 15H.
You can invest ₹2 Lakhs in a fixed deposit if you are at least 18 years and have a PAN card. HUFs and minors can also open an FD account provided that they follow the conditions set by the issuer.
You can simply calculate the monthly interest on a ₹2 Lakh fixed deposit by using the free Fixed Deposit Calculator. The calculator helps you to instantly know the monthly interest on your ₹2 Lakh fixed deposit along with the maturity amount.
To calculate monthly interest on a ₹2 Lakh fixed deposit, select the customer type- senior citizen or non-senior citizen. Now, choose the FD type- cumulative or non-cumulative FD and enter your deposit amount.
You can select your desired investment tenor, ranging from 12 months to 60 months. The online calculator will now display the interest earned and the total amount at maturity.
Alternatively, you can also calculate the fixed interest rate by using the mathematical formula:
M= P + P {(1 + i/100) t – 1}, where P equals principal amount, i equals the rate of interest per period and t equals tenor.