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 Name||Interest Rates||Monthly 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|
|State Bank of India||7.60%||Rs. 1,267|
|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|
|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
Yes, most financial institutions offer special interest rates for senior citizens. Usually, higher rates (0.25% to 0.50%) than regular citizens.
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.
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.
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.
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.