Monthly interest for Rs. 2 lakh FD
The monthly interest you earn on a Rs. 2 lakh Fixed Deposit depends on the interest rate offered and the deposit tenure. Non-cumulative fixed deposit pay out interest monthly, providing a regular income stream. Factors like senior citizen status and the bank or financial institution can influence the interest rate on Rs. 2 lakh FD.
FD monthly interest pay-out for deposits of Rs. 2 lakh
Amount
|
Interest rate(p.a.)
|
Interest per month from Rs. 2 lakh FD
|
Rs. 2 lakh
|
6%
|
Rs. 1,000
|
Rs. 2 lakh
|
6.50%
|
Rs. 1,083.3
|
Rs. 2 lakh
|
7%
|
Rs. 1,166.7
|
Rs. 2 lakh
|
7.50%
|
Rs. 1,250
|
Rs. 2 lakh
|
8%
|
Rs. 1,333.3
|
Rs. 2 lakh
|
8.50%
|
Rs. 1,416.7
|
Rs. 2 lakh
|
9%
|
Rs. 1,500
|
Rs. 2 lakh
|
9.50%
|
Rs. 1,583.3
|
Rs. 2 lakh
|
10.00%
|
Rs. 1,666.7
|
Benefits of getting monthly interest on your investment
Monthly interest income can provide a regular source of income for people who depend on their investments for their livelihood. It can be especially useful for retirees who no longer have regular employment or earning opportunities. Monthly interest can also be a useful tool for individuals who need a steady income to manage their household expenses or pay for their children's education.
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 8.60% p.a. on their FD.
For example, investing in a fixed deposit with a monthly interest payout of 8% on Rs. 2 lakh investment, you can get a monthly income of Rs. 1,333.
TDS on a Rs. 2 Lakh Fixed Deposit (FD)
Interest earned on your fixed deposits is subject to Tax Deducted at Source (TDS) if it exceeds the annual limit. Banks and NBFCs apply TDS based on the following conditions:
For regular citizens: TDS is applicable if the total interest earned in a financial year exceeds Rs. 40,000.
For senior citizens: The TDS deduction limit is higher, at Rs. 50,000 per financial year.
TDS Rate: The tax is deducted at 10% if your PAN is provided. If PAN details are not submitted, a rate of 20% is applied.
Calculate Interest on a Rs. 2 Lakh FD
Calculating the interest on a Rs. 2 lakh FD is simple when you use an online FD interest calculator. Just enter the following details:
The calculator will display the maturity amount and total interest earned—whether you choose a cumulative or non-cumulative payout.
Example: Monthly Interest on Rs. 2 Lakh FD
Let’s say you invest Rs. 2 lakh in a non-cumulative FD at 7.95% p.a. for 18 months with monthly payouts.
Monthly Interest Earned
= Rs. 2,00,000 × 7.95% / 12
= Rs. 15,900 / 12
= Rs. 1,325/month
So, you'd receive Rs. 1,325 every month as interest for 18 months.
Example: Total Interest on Rs. 2 Lakh Cumulative FD
If you opt for a cumulative FD at the same 7.95% p.a. for 18 months, the interest compounds, and you receive the lump sum at maturity.
Monthly interest on Rs. 2 lakh FD for senior citizens
Senior citizen fixed deposit (FDs) are term deposit plans with exceptional interest rates available to individuals over the age of 60. Apart from the additional up to 0.40% p.a. rate of interest, these fixed deposit accounts offer a wide range of benefits to older residents. Regular interest payouts can provide a constant and reliable income source for seniors in their post-retirement years. If needed, they can also take out a loan against the FD.
Bajaj Finance provides assured returns on Fixed Deposits, making it a top investment choice for senior citizens. With attractive fixed deposit rates for senior citizens, ease of transactions, safety of deposits, and convenient online facilities, Bajaj Finance FD is ideal for all investors, regardless of their risk tolerance.
Documents required for a Rs. 2 lakh fixed deposit
