When investing in an FD, issuers offer various interest payout intervals, such as monthly, quarterly, and annual payouts. On choosing a monthly interest payout option, you will receive monthly returns that you could use to pay off certain expenses.

 

To understand this better, here is an example. If you earn 7% interest on an FD of ₹2 Lakhs for a tenor of 5 years, you can get monthly interest of approximately ₹1,166. While the amount may seem small, it can complement your income and help you plan and budget your expenses effectively.

 

But before you invest, compare your returns across different rates, tenors, and issuers to choose the one that offers the most lucrative earnings. 

Deposit Amount

Interest Rate

Tenure

Months

Interest Payout

At Maturity
At Maturity
Monthly
Quaterly
Half Yearly
Yearly

Invest Amount

Interest Rate

Total Interest Amount

Total Payout Principal + Interest

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Monthly Interest on a Fixed Deposit of ₹2 Lakhs

When you book an FD at high interest rates, you can secure the best returns. Here is an estimate of the monthly interest payout you would receive on an FD of ₹2 Lakhs for 5 years at different rates. 

Deposit Amount

Interest Rate (p.a.)

Monthly Interest Payout

₹2 Lakhs

6.00%

₹1,000

₹2 Lakhs

6.50%

₹1,083

₹2 Lakhs

7.00%

₹1,166

₹2 Lakhs

7.50%

₹1,250

₹2 Lakhs

8.00%

₹1,333

₹2 Lakhs

8.50%

₹1,416

₹2 Lakhs

9.00%

₹1,500

₹2 Lakhs

9.50%

₹1,583

₹2 Lakhs

10.00%

₹1,666

Note: These values are indicative and may vary based on the invested amount and chosen tenor.

 

Another parameter impacting your returns is the tenor you choose for a fixed deposit. For instance, if you invest in an FD of ₹2 Lakhs for 2 years, your monthly interest will be ₹533 at an interest rate of 8%. As you can see, your interest income increases when you choose a longer tenor and vice versa.

 

Monthly Interest on a Fixed Deposit of ₹2 Lakhs from Banks/NBFCs

The issuer you choose is one of the factors that influence the FD rates and, thereby, your returns. Here is the monthly interest on a fixed deposit of ₹2 Lakhs offered by 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.

7.81%

₹1,301

8.05%

₹1,341

PNB Housing Finance Ltd. 

7.39%

₹1,231

7.59%

₹1,265

Mahindra Finance Ltd. 

7.55%

₹1,258

7.80%

₹1,300

LIC Housing Finance

7.50%

₹1,250

7.75%

₹1,291

Shriram Finance

8.47%

₹1,411

8.97%

₹ 1,495

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%

₹1,291

IndusInd Bank 

7.25%

₹1,208

7.75%

₹1,291

YES Bank

7.25%

₹ 1,208

8.00%

₹ 1,333

Jana Small Finance Bank 

7.25%

₹1,208

7.75%

₹1,291

Kotak Mahindra Bank

6.20%

₹1,033

6.70%

₹1,116

SBI

6.50%

₹1,083

7.50%

₹1,250

AU Small Finance Bank

7.21%

₹1,201

7.70%

₹1,283

Ujjivan Small Finance Bank

7.20%

₹1,200

7.70%

₹1,283

Note: The above-mentioned rates are subject to change at the issuer’s discretion.

 

You can also use the online FD interest calculator to compare your options and invest as per your goals and finances. If you want to book an FD of ₹2 Lakhs for 3 years, all you have to do is enter the deposit amount, choose an applicable rate and select the tenor as 36 months. Select the interest payout mode as monthly and you will get the result within seconds.

 

Now that you have a better understanding of the potential interest per month on a fixed deposit of ₹2 Lakhs choose an issuer of your choice. On Bajaj Markets, you can select from multiple issuers offering competitive rates. 

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.

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FAQs on the Monthly Interest for an FD of ₹2 Lakhs

What is the maximum interest I can get every month on an FD of ₹2 Lakhs?

There is no cap on the interest you can receive. It depends on the fixed deposit interest rate that an issuer decides. Issuers decide the rate depending on several factors, such as repo rate, internal policies, and investment terms. 

Does interest on an FD of ₹2 Lakhs depend on the tenor?

Yes, generally, longer tenors yield higher interest rates for the same principal amount. So, the interest on an FD of ₹2 Lakhs for 1 year will be lower than one with a tenor of 2 or more years. 

What is the TDS on the interest income for an FD of ₹2 Lakhs?

This is applicable when the annual interest from your FD of ₹2 Lakhs exceeds the threshold of ₹40,000 or ₹50,000 in the case of senior citizens. The issuer deducts TDS before crediting the interest to your account.

What are the documents required when booking a fixed deposit of ₹2 Lakhs?

You will need to provide identity proof (such as a PAN card or an Aadhaar card), address proof (like a passport or utility bill), and other KYC documents. However, this varies depending on the issuer.

What are the eligibility criteria for a fixed deposit of ₹2 Lakhs?

Most issuers allow individuals aged 18 and above with a PAN card and entities, such as HUFs, to invest in a fixed deposit. Minors can also open FD accounts, provided they do so with a guardian. However, it depends on the issuers.

How to calculate the FD interest for ₹2 Lakhs?

You can calculate the monthly interest on a fixed deposit of ₹2 Lakhs using an online FD calculator or this formula: M = P + P {(1 + i/100)^t – 1}. Here, M is the maturity amount, P is the principal amount, i is the rate of interest, and t is the tenor.

Is there a penalty for withdrawing funds from the fixed deposit of ₹2 Lakhs before maturity?

Penalties for premature withdrawal vary depending on the terms set by the bank or issuer. Typically, such withdrawals incur penalties in the form of reduced interest earnings.

What happens if I do not renew my fixed deposit of ₹2 Lakhs after maturity?

If you choose not to renew your fixed deposit, the funds are usually transferred to your bank account. Alternatively, some issuers may automatically renew the deposit at prevailing interest rates for the same tenor.

Can I add more money to my fixed deposit of ₹2 Lakhs during the tenor?

No, in most cases, you cannot add more funds during the tenor. Fixed deposits are designed for one-time investments. If you wish to invest additional funds, you would need to open a new fixed deposit account. 

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