The fixed deposit interest rate depends on various aspects, including deposited amount, tenure, interest computation frequency, type of FD, and taxation.

With the right fixed deposit (FD), investors can easily meet their long-term financial goals and fulfil their basic needs. On an investment of Rs. 2 crore investment, you can earn monthly interest. This will help in growth of your money, and act as a regular source of income for you.

In this volatile market, fixed deposit is a safe investment option that offers profitable returns. It is not market driven and the FD rates are determined during the time of investment. These rates can also change basis the payout frequency.

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 FD 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 chooses 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.

Interest on 2 crores FD

With Bajaj Finance, you can invest up to Rs. 5 crore for a tenure of 12 – 60 months. The FD rates on your investment will be basis your investment tenure.

Mentioned below are the FD rates for customers below 60 years of age at different tenures. Senior citizens get additional rate benefit of up to 0.25% p.a. p.a.

Interest Calculation on Bajaj Finance FD

Before you start your Rs. 2 crore investment, use the FD calculator to know the interest and the maturity amount. Mentioned below are two examples of interest calculation for a cumulative and a non-cumulative fixed deposit made with Bajaj Finance.

1. Cumulative FD

If you want to invest for the long-term with the safety of your capital, you can choose cumulative FD 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 tenure

Applicable interest rate for cumulative interest

Total interest payout

Scenario 1

Customers below 60 years

2 crore

60 months

8.05% p.a.

Rs. 89,13,467

Scenario 2

Senior citizens

2 crore

60 months

8.30% p.a.

Rs. 92,50,764


2. Non-Cumulative FD

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

 

Investor category

FD amount

Investment tenure

Applicable interestrRate for monthly interest payout

Total interest payout

Scenario 1

Customers below 60 years

2 crore

60 months

7.77% p.a.

Rs. 73,90,000

Scenario 2

Senior citizens

2 crore

60 months

8.00% p.a.

Rs. 76,30,000


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'.

Fixed deposit interest is completely taxed. Add it to your overall income to be taxed at the appropriate slab rates. It must be included in your Income Tax Return under the heading "Income from Other Sources."

When banks credit interest to your account, they deduct tax at source. The tax is deducted if the amount of interest exceeds Rs. 40,000 for anyone who is below 60 years of age and Rs. 50,000 for senior citizens.

It is important to keep in mind that the TDS is taken out when interest is credited rather than when the FD matures. So, banks must deduct TDS at the end of each year if you have an FD for three years.