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In summary
A non-cumulative Bajaj Finance Fixed Deposit can provide predictable monthly interest while keeping the principal invested until maturity.
- Customers below 60 can receive monthly interest between Rs. 6,000 to Rs. 6,400
- Senior citizens can receive monthly interest between Rs. 6,500 to Rs. 6,700.
- Monthly payout rates range from 6.60% to 7.49% p.a. for customers below 60.
- Senior Citizen FD monthly rates range from 6.97% to 7.86% p.a.
- Bajaj Finance Fixed Deposit offers flexible tenures between 12 and 60 months.
- The principal amount is returned when the non-cumulative Fixed Deposit matures.
These rates apply w.e.f 07 October, 2026 and may change periodically. Check the prevailing rate before booking your Fixed Deposit.
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Monthly interest for Rs. 2 lakh FD
The monthly interest on Rs. 2 lakh FD depends on the applicable annual rate, tenure, and investor category. A non-cumulative fixed deposit distributes interest periodically instead of reinvesting it. Monthly payouts can support household expenses, recurring bills, or retirement income. The approximate monthly interest can be calculated using this formula:
Monthly interest = Deposit amount × annual interest rate ÷ 12. For example, a 7% p.a. rate produces approximately Rs. 1,167 monthly on a Rs. 2 lakh deposit.
FD monthly interest pay-out for deposits of Rs. 2 lakh
The table shows the approximate 2 lakh fixed deposit interest per month at different illustrative annual rates.
Deposit amount Interest rate Approximate monthly interest Rs. 2 lakh 6.00% p.a. Rs. 1,000 Rs. 2 lakh 6.50% p.a. Rs. 1,083 Rs. 2 lakh 7.00% p.a. Rs. 1,167 Rs. 2 lakh 7.50% p.a. Rs. 1,250 Rs. 2 lakh 8.00% p.a. Rs. 1,333 Rs. 2 lakh 8.50% p.a. Rs. 1,417 Rs. 2 lakh 9.00% p.a. Rs. 1,500 Rs. 2 lakh 9.50% p.a. Rs. 1,583 Rs. 2 lakh 10.00% p.a. Rs. 1,667 These examples demonstrate the calculation method. They do not represent the current Bajaj Finance Fixed Deposit rates for monthly payouts.
Benefits of getting monthly interest on your investment
Monthly interest payouts can help investors receive predictable income while keeping their principal invested throughout the selected tenure.
- Regular income: Monthly payouts provide a steady inflow for managing recurring expenses.
- Useful during retirement: Retirees can use the interest to supplement other income sources.
- Principal remains invested: The deposit amount stays invested until the Fixed Deposit matures.
- Predictable returns: The applicable interest rate remains fixed throughout the selected tenure.
- Flexible planning: Investors can align monthly payouts with household expenses and other financial requirements.
- Principal repayment: Bajaj Finance returns the deposit amount when the Fixed Deposit reaches maturity.
- Different return structure: Monthly payout rates are generally lower than annual or maturity payout rates.
- Choice based on goals: Monthly payouts support regular income, while cumulative deposits focus on compounded maturity returns.
Investing in a fixed deposit with a higher monthly interest rate can provide greater returns and long-term financial benefits. NBFC’s like Bajaj Finance offer on the highest returns of up to w.e.f 07 October, 2026 p.a. on their FD.
TDS on a Rs. 2 Lakh Fixed Deposit (FD)
Fixed Deposit interest is taxable according to the investor’s applicable income-tax slab. TDS represents advance tax rather than the final liability. For company deposits, including Bajaj Finance Fixed Deposit, TDS generally applies when annual interest exceeds Rs. 10,000. The annual interest on Rs. 2 lakh exceeds this threshold under the currently available rates. Therefore, TDS may apply during the financial year.
The usual TDS rate is 10% when the investor provides PAN. The rate can increase to 20% without PAN. Eligible investors may submit Form 15G or Form 15H when their estimated tax liability meets the prescribed conditions. Investors should report their complete Fixed Deposit interest under income from other sources when filing their income-tax returns.
Calculate Interest on a Rs. 2 Lakh FD
Suppose a customer below 60 invests Rs. 2 lakh for 18 months. The applicable monthly payout rate is 6.64% p.a.
Monthly interest = Rs. 2,00,000 × 6.64% ÷ 12
Approximate monthly interest = Rs. 1,107
The investor receives approximately Rs. 1,107 monthly for 18 months. The total interest equals approximately Rs. 19,920 before taxes. Bajaj Finance returns the Rs. 2 lakh principal when the Fixed Deposit matures.
How does cumulative interest work?
A cumulative Fixed Deposit reinvests the interest instead of distributing monthly payouts. The reinvested amount continues earning returns through compounding. For 18–30 months, Bajaj Finance offers 6.85% p.a. for customers below 60 and 7.20% p.a. for senior citizens. The final maturity amount depends on the booking date and exact tenure. Use the FD calculator for an accurate maturity estimate.
Monthly interest on Rs. 2 lakh FD for senior citizens
A Senior Citizen Fixed Deposit is available to eligible individuals aged 60 or above. Bajaj Finance offers senior citizens rates up to 0.40% p.a. higher than rates for customers below 60. For monthly payouts, a Rs. 2 lakh investment can currently provide approximately Rs. 1,123 to Rs. 1,248 monthly. Senior citizens can select tenures between 12 and 60 months. They may also choose quarterly, half-yearly, annual, or maturity payouts. A loan against Fixed Deposit is available for eligible investors. Bajaj Finance provides up to 75% of a cumulative deposit’s value.
Documents required for a Rs. 2 lakh fixed deposit
Resident Indian individuals require a PAN and an accepted KYC document to book Bajaj Finance Fixed Deposit.
Accepted KYC documents include:
- Aadhaar card
- Passport
- Driving licence
- Voter ID
Bajaj Finance may fetch documents through registered KYC records. Existing customers can confirm or update the available details during their application.
Reinvestment or cumulative FD
What is Provident Fund (PF) Meaning, Benefits, Types
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A cumulative Fixed Deposit reinvests accrued interest and pays the proceeds at maturity. Compounding allows previously earned interest to generate additional returns. This structure generally suits investors seeking long-term capital growth.A non-cumulative Fixed Deposit distributes interest monthly, quarterly, half-yearly, or annually. It suits investors seeking regular income during the tenure. The appropriate type of Fixed Deposit depends on whether regular income or higher maturity proceeds take priority. Therefore, it can be stated that Cumulative FDs are a good option for investors who are looking to grow their capital over a long period of time. They are also a good option for those who do not need the regular income that is provided by non-cumulative fixed deposits.
Conclusion
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The 2 lakh fixed deposit interest per month reaches approximately Rs. 6000 for Bajaj Finance customers below 60. Senior citizens can receive approximately Rs. 6500 at the current 31–60-month monthly payout rate. Compare tenure, payout frequency, taxation, and liquidity requirements before investing. Use the FD calculator to estimate returns using the applicable booking-date rate.
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Fixed Deposit variants
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Frequently Asked Questions
Overview
What parameters are used to calculate interest on FD?
Parameters for FD interest calculation include the principal amount, tenure, the applicable interest rate, and the payout frequency.
How to calculate FD interest rate using an online calculator?
To calculate FD interest rate with an online calculator, input the type of customer (senior citizen or customer below the age of 60), principal amount, tenure, interest rate, and choose the compounding frequency (monthly, quarterly, annually) if applicable.
Why is it important to understand how fixed deposit interest is calculated?
Understanding FD interest calculation is crucial for estimating returns, comparing investments, and making informed financial decisions.
What is the difference between the calculation of simple interest and compound interest?
The main difference is that simple interest is calculated only on the principal amount, while compound interest includes interest on interest.
Is FD interest credited monthly?
FD interest can be credited monthly, quarterly, or annually, depending on the terms of the FD.
How does the FD interest rate work?
FD interest rate is the annual percentage return offered by the bank, and it determines the interest earned on the principal amount over the investment tenure.
Disclaimer
1. Bajaj Finance Limited (“BFL”) is a Non-Banking Finance Company (BAJAJ FINANCE) and Prepaid Payment Instrument Issuer offering financial services viz., loans, deposits, Bajaj Pay Wallet, Bajaj Pay UPI, bill payments and third-party wealth management products. The details mentioned in the respective product/ service document shall prevail in case of any inconsistency with respect to the information referring to BFL products and services on this page.
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