Monthly Interest on 2 Lakh Fixed Deposit
Updated on: 28 Dec 2023 | 6 min read
Fixed Deposits are a secure and rewarding investment opportunity. Imagine having the flexibility to earn interest on your substantial investment every month. Our 2 Lakh Fixed Deposit scheme offers just that – a significant investment option with monthly interest payouts.
In this blog, we will learn in detail about this attractive financial instrument, explore the enticing interest rates it provides, and discuss how it can become your pathway to financial stability and growth.
Monthly Interest for ₹ 2 Lakhs in FD 2023
Public Sector Bank
| Bank Name | Interest rate (Regular) | ₹ 2 Lakh FD interest monthly | Interest rate (Senior Citizen) | ₹ 2 Lakh FD interest monthly |
|---|---|---|---|---|
| Punjab National Bank | 7.25% | 1,208/- | 7.75% | 1,292/- |
| Indian Overseas Bank | 7.25% | 1,208/- | 7.75% | 1,292/- |
| Indian Bank | 7.25% | 1,208/- | 7.75% | 1,292/- |
| State Bank of India | 7.10% | 1,183/- | 7.60% | 1,267/- |
| Union Bank of India | 6.70% | 1,117/- | 6.95% | 1,158/- |
Private Sector Bank
| Bank Name | Interest rate (Regular) | ₹ 2 Lakh FD interest monthly | Interest rate (Senior Citizen) | ₹ 2 Lakh FD interest monthly |
|---|---|---|---|---|
| DCB Bank | 7.90% | 1,317/- | 8.50% | 1,417/- |
| Bandhan Bank | 7.85% | 1,308/- | 8.35% | 1,392/- |
| RBL Bank | 7.80% | 1,300/- | 8.30% | 1,383/- |
| YES Bank | 7.75% | 1,292/- | 8.25% | 1,375/- |
| IndusInd Bank | 7.25% | 1,208/- | 8.25% | 1,375/- |
NBFC FDs
| NBFC | Interest rate (Regular) | ₹ 2 Lakh FD interest monthly | Interest rate (Senior Citizen) | ₹ 2 Lakh FD interest monthly |
|---|---|---|---|---|
| Shriram Finance | 8.18% | 1,363/- | 8.68% | 1,447/- |
| Bajaj Finserv Limited | 8.05% | 1,342/- | 8.28% | 1,380/- |
| PNB Housing Finance Limited (Non cumulative option) | 7.58% | 1,263/- | 7.88% | 1,313/- |
| Mahindra Finance Limited (Non cumulative option) | 7.50% | 1,250/- | 7.75% | 1,292/- |
| LIC Housing Finance | 7.25% | 1,208/- | 7.50% | 1,250/- |
Small Finance Bank
| Bank Name | Interest rate (Regular) | ₹ 2 Lakh FD interest monthly | Interest rate (Senior Citizen) | ₹ 2 Lakh FD interest monthly |
|---|---|---|---|---|
| Unity Small Finance Bank | 9.00% | 1,500/- | 9.50% | 1,583/- |
| Suryoday Small Finance Bank | 8.60% | 1,433/- | 9.10% | 1,517/- |
| Fincare Small Finance Bank | 8.51% | 1,418/- | 9.11% | 1,518/- |
| Ujjivan Small Finance Bank | 8.25% | 1,375/- | 8.75% | 1,458/- |
| AU Small Finance Bank | 8.00% | 1,333/- | 8.50% | 1,417/- |
*The interest is calculated using the Simple Interest formula
Interest on FD= Amount invested x Interest rate x (Duration/12 months)
Calculating Monthly Interest on a ₹ 2 Lakh FD - Alternate Method
To calculate interest for cumulative FDs, you can use the following formula:
A = P (1 + R/N)^(N*T)
Where:
A – Maturity amount
P – Deposited amount
R – Interest rate
N – Compounding frequency
T – Deposit term
For instance, if you deposit ₹ 2,00,000 for one year at a 6% interest rate compounded quarterly:
A = 2,00,000 * (1 + 0.06/4)^(4*1)
= ₹ 2,12,273/-
To find the annual interest, subtract the maturity amount from the deposited sum:
Annual interest = ₹ 12,273/-
For monthly interest, divide the annual interest by 12:
Monthly interest = ₹ 1,023/-
Eligibility Criteria for FD
Following are the people eligible for FD
- Resident Indian
- Overseas Citizen of India or Person of Indian Origins
- HUFs
- Sole-proprietorship
- Partnership firms
- Family Trusts
- Companies, associations, clubs and societies
- NRIs 18 years or above
Documents required for FD
Following are the documents that are required to open FD
- A completed account opening application form.
- A valid ID proof, which can include: an Aadhaar card, PAN card, Voter's ID card, Passport, Driving licence,
- Government-issued identity card, Photo ration card, or Any other official document with your photograph.
- A valid address proof, which can include: an Aadhaar card, Passport, Voter's ID card, Driving licence, Utility bills like phone or gas bills, Rent agreement, Property deed etc.
FAQs
How to open ₹ 2 lakh FD in any financial institution?
One can either go for an online or offline method to open an FD account in any financial institution. You just have to complete the paperwork or complete the procedure of KYC for the same.
Can investors make ₹ 2 lakh FD in the name of a minor?
Yes, one can put money in the name of a minor but the parent or the guardian should do the same. The application form must be signed by the parent/guardian and all the communication must be sent to them.
What is the typical interest rate for 2 Lakh FD with monthly interest?
The interest rate of FD is decided by the bank and financial institution. It depends upon various economic and monetary factors and prevailing market conditions. Investors should always do proper research before investing in any bank FD.
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