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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 2024

The following table lists 2 lakhs FD interest per month for different banks over a tenor of 5 years for general public:

Monthly Interest for 2 LakhBank NameInterest Rates
Rs. 967 Bank of Maharashtra 5.80%
Rs. 1,042 City Union Bank 6.25%
Rs. 1,042 Central Bank of India 6.25%
Rs. 1,083 State Bank of India 6.50%
Rs. 1,083 Punjab National Bank 6.50%
Rs. 1,083 Indian Overseas Bank 6.50%
Rs. 1,083 Bank of Baroda 6.50%
Rs. 1,083 Bank of India 6.50%
Rs. 1,167 Axis Bank 7.00%
Rs. 1,183 RBL Bank 7.10%
Rs. 1,208 AU Small Finance Bank 7.25%
Rs. 1,208 Fincare Small Finance 7.25%
Rs. 1,233 HDFC 7.40%
Rs. 1,250 Post Office 7.50%
Rs. 1,267 ICICI 7.60%
Rs. 1,292 LIC 7.75%
Rs. 1,412 Shriram Finance 8.47%

What is the TDS on ₹2 Lakh FD interest income?

When depositing your savings in a fixed deposit, it’s important to note that the interest earned on FDs is subject to taxation. Banks deduct TDS on interest earned. TDS is deducted on interest income above INR 40,000 per annum for regular citizens and above INR 50,000 for senior citizens. The TDS rate is at 10%.

What are the documents required for a ₹2 Lakh fixed deposit?

The following are the documents required to open a ₹2 lakh fixed deposit in India: 

Identity Proof: Aadhar Card, Photo Ration Card, Driving Licence, Passport, Voter ID card, etc.

Address Proof: Passport, Utility bills, bank statement with cheque, etc.

Signature Proof: PAN Card, Passport, driving licence, etc.

Moreover, senior citizens intending to invest in a ₹2 Lakh fixed deposit must submit additional documents, including proof of age and Form 15H.

What is the eligibility criteria for a ₹2 Lakh fixed deposit?

Indian citizens above 18 years, minors (with a guardian), HUFs, and NRIs can open a ₹2 Lakhs fixed deposit.

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