The fixed deposit interest rate depends on various aspects, including deposited amount, tenor, interest computation frequency, type of FD, and taxation.
The monthly interest on Rs. 2 crores fixed deposit (FD) can be an excellent source of income. If they choose the right type of FD, investors can easily meet their long-term financial goals and fulfill their basic needs with significant interest on 2 crores FD.

There are two types of Fixed Deposits

1. Cumulative Fixed Deposits:

A cumulative FD provides the compounding benefit to the investor and pays the interest at the maturity date. Investors with long-term financial goals, like buying a home, getting education abroad, marriage, or retirement, can choose cumulative FDs to get the entire amount of principal and interest upon maturity.

2. Non-cumulative Fixed Deposits:

A non-cumulative FD provides interest payouts at regular intervals. Investors can choose the interval period according to their financial requirements with the 2 crores fixed deposit interest. An FD issuer can give options of monthly, quarterly, semi-annually, or annually for interest credit. If an investor is a retiree, a significant amount of 2 crores FD interest per month can be a great financial support.

Higher interest on 2 crores FD

Declining interest rates on fixed-income instruments have been a concern for most investors. As a solution, corporate FDs came into the limelight. Bajaj Finance FDs offer a higher interest rate than bank FDs. Bank FD rates above 2 crores are limited to 5% - 5.50%. In comparison, Bajaj Finance FD can earn interest up to 7.70% p.a. where investors can take advantage of additional FD rates for senior citizens.

Interest Calculation on Bajaj Finance FD

Non-Cumulative FDs

As mentioned, to fulfil your everyday financial needs with monthly interest payouts, you can choose Non-Cumulative FDs. Following are the different scenarios for FD monthly interest:

 

Investor Category

FD Amount

Investment Tenor

Applicable Interest Rate for monthly interest payout

Total Interest Payout

Scenario 1

Non-senior citizen investing offline/ online

2 Crores

60 Months

7.25% p.a.

Rs. 67,90,000

Scenario 2

Senior citizen investing online/ offline

2 Crores

60 Months

7.49% p.a.

Rs. 70,20,000


This is the calculation for 2 crore interest per month on Bajaj Finance non-cumulative FDs. Let us move to Cumulative FDs.

Additional Reads: How you can invest 1 lakh to maximize monthly interest ?

Cumulative FDs:

If you want to invest for the long term with the safety of your capital, you can choose cumulative FDs and get the entire interest amount on the maturity date. Interest calculation on Bajaj Finance cumulative FD is as follows:

 

Investor Category

FD Amount

Investment Tenor

Applicable Interest Rate for cumulative interest

Total Interest Payout

Scenario 1

Non-senior citizen investing offline/ online

2 Crores

60 Months

7.50% p.a.

Rs. 80,51,035

Scenario 2

Senior citizen investing online/ offline

2 Crores

60 Months

7.75% p.a.

Rs. 83,80,269


Fixed Deposit Interest and Income Tax 2022-23

  • FD interest is taxable in the hands of investors under the head of 'Income from Other Sources.'
  • If the interest income is less than Rs. 5,000 in each financial year, NBFCs do not deduct any TDS. If it exceeds Rs. 5,000, TDS will be deducted @ 10%.

This is the calculation for monthly interest on your FDs of 2 crores and tax treatment. You can utilize Bajaj Finance FD as a safe and reliable investment for monthly interest income at higher interest rates.