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Investing 2 lakhs in a fixed deposit can yield substantial monthly returns. This opportunity offers a stable income stream and financial security. However, it’s important to note that the interest rates on FDs can vary over time. Therefore, checking for the current interest rates before making any investment decisions is recommended.

Monthly Interest for 2 Lakhs in FD 2023

Bank NameInterest RatesMonthly Interest for 2 Lakh
Central Bank of India 7.25%Rs. 1,208
City Union Bank 7.50%Rs. 1,250
Bank of Maharashtra 7.50%Rs. 1,250
Post Office 7.50%Rs. 1,250
Bank of India 7.50%Rs. 1,250
ICICI 7.60%Rs. 1,267
State Bank of India 7.60%Rs. 1,267
HDFC 7.75%Rs. 1,292
Punjab National Bank 7.75%Rs. 1,292
Indian Overseas Bank 7.75%Rs. 1,292
Bank of Baroda 7.75%Rs. 1,292
Axis Bank 7.85%Rs. 1,308
LIC 8.00%Rs. 1,333
RBL Bank 8.30%Rs. 1,383
AU Small Finance Bank 8.50%Rs. 1,417
Shriram Finance 8.68%Rs. 1,447
Fincare Small Finance 9.11%Rs. 1,518

Frequently Asked Questions

Are there special interest rates for senior citizens?

Yes, most financial institutions offer special interest rates for senior citizens. Usually, higher rates (0.25% to 0.50%) than regular citizens.

How much tax will I have to pay on my 2 Lakh FD?

The interest income from FD is taxable as per the investor’s income tax slab rate. The interest is added to the total taxable income and is taxed at the applicable rate.

Is TDS applicable on my 2 lakhs fixed deposit interest?

According to Section 194A of the Income Tax Act, a 10% TDS (Tax Deducted at Source) is applicable on annual interest income exceeding ₹40,000. In the case of a ₹2 Lakhs fixed deposit, the annual interest does not surpass this threshold. Therefore, no TDS will be charged.

Does any change in the interest rate affect my 2 lakhs fixed deposit interest?

The interest rate of a fixed deposit remains consistent throughout its tenor until maturity. This means that once you lock in a fixed deposit, the interest rate remains unchanged until the deposit reaches its maturity date, ensuring stability and predictability in your earnings.

Is interest on FD paid monthly?

There are primarily two modes of receiving interest on a fixed deposit. The first is the cumulative option, where the interest is compounded on a quarterly basis and paid upon maturity or automatically renewed. The second is the non-cumulative option, where the interest is disbursed in the form of monthly, quarterly, or maturity payments, providing regular income throughout the tenor.

Fixed Deposit Interest Per Month