A ₹2 crore fixed deposit can generate a genuinely large monthly income, but at this size, the interest rate is only one part of the decision. At 6.5% annually, you’re looking at around ₹108,333 per month, pre-tax. Bump that up to 7.25%, and you’re at ₹120,833, and at 8.1%, that’s approximately ₹135,000 monthly. What really changes with a ₹2 crore deposit, compared to something smaller, is everything surrounding the rate: how you choose your tenure, monthly payout calculations, tax implications on that bigger interest income, deposit insurance coverage, and how much of the corpus sits with a single bank.
There’s also a bigger question: does all ₹2 crore need to sit in one FD? Below, we compare FDs with bonds and debt funds. High-rated bonds now yield more than many large-bank FDs, and debt funds are worth a look because they spread your money across many issuers, let you withdraw in parts, and delay tax until you redeem.
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₹2 Crore FD Monthly Interest Across Banks in 2026
The table below uses current rates for deposits below ₹3 crore, which is the slab ₹2 crore falls into at most major banks, since bulk-deposit pricing typically applies only from ₹3 crore upward. Because tenures differ across banks, treat this as an illustrative comparison rather than a ranking.
| Bank | Illustrative tenure | Rate | Simple monthly equivalent on ₹2 crore* |
| SBI | 2 years to <3 years | 6.40% | ₹106,667 |
| HDFC Bank | 18 months to 3 years | 6.45% | ₹107,500 |
| ICICI Bank | 3 years 1 day to 5 years | 6.50% | ₹108,333 |
| Kotak Mahindra Bank | 2 years to <3 years | 6.80% | ₹113,333 |
| YES Bank | 18 months 1 day to <24 months | 7.25% | ₹120,833 |
| Suryoday Small Finance Bank | 30 months | 8.10% | ₹135,000 |
Source: Respective banks
*Simple calculation: ₹20,000,000 × annual rate ÷ 12. Banks often apply a discounted rate for the monthly-payout option, so the actual credit can be slightly lower than this figure.
FD vs Bonds: Which Works Harder for ₹2 Crore?
A bond pays a fixed coupon like an FD does, but you’re lending to a company or the government instead of a bank, and the bond can be bought and sold in the market. At ₹2 crore, that difference matters. Here is where indicative yields stand:
| Instrument | Indicative yield | As of | Simple monthly equivalent on ₹2 crore* |
| 5-year Government Security | ~6.82% | 25 Sep 2026 | ₹113,667 |
| 10-year Government Security | ~7.12% | 25 Sep 2026 | ₹118,667 |
| 5-year AAA corporate bond | ~7.50% | 2 Sep 2026 | ₹125,000 |
| 5-year AA corporate bond | ~8.27% | 2 Sep 2026 | ₹137,833 |
*Yield isn’t the same as coupon, and many bonds pay annually or half-yearly rather than monthly.
Compared with the 6.4-6.5% at the large banks above, a top-rated corporate bond can pay about a percentage point more. On ₹2 crore, that’s roughly ₹2 lakh a year. AA paper pays more still, but the extra yield compensates you for extra credit risk.
Bonds may suit you if:
- you can hold to maturity, so price swings along the way don’t matter;
- you want part of your money outside the banking system, since bonds aren’t covered by DICGC
- you’re comfortable checking an issuer’s credit rating and security.
FDs may suit you better if:
- you want a fixed, predictable monthly credit;
- you may need the money early, since bond prices can dip when yields rise
- you don’t want to monitor credit quality.
Yields have been climbing, with the 10-year G-Sec up for six straight weeks (as of 25 September 2026). The RBI’s policy committee meets on 5-7 October with the repo rate at 5.25%. Some forecasters, such as Fitch, expect a 25 bps hike in October, while others expect the RBI to wait until December. Higher yields lower the market price of existing bonds, but new bonds and FDs may soon pay more.
On tax: Interest is taxed at your slab rate, like FD interest. If you sell a listed bond after more than 12 months, the gain is taxed at 12.5% without indexation. Within 12 months, it’s taxed at your slab rate. Gains on unlisted bonds are taxed at slab rates however long you hold them, so check whether a specific bond is listed before you buy.
Latest Bond Updates:
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Debt Mutual Funds: A Third Option for ₹2 Crore
Debt mutual funds pool money from many investors and buy a mix of bonds. Unlike an FD or a single bond, they have no fixed maturity date and no promised return. The fund’s value moves with interest rates and with the credit quality of what it holds, so it can fall when yields rise, as they have been recently.
What you get in exchange is flexibility. You can usually redeem in parts, and you don’t have to pick individual issuers. That suits money you might need in stages, such as a medical or property reserve.
On tax, gains on debt-fund units bought on or after 1 April 2023 are taxed at your slab rate, whatever the holding period. The rate matches FD interest, but the timing differs. Tax on a debt fund arrives when you redeem, while FD interest is taxed every year as it’s earned. For income you need on a fixed date, an FD or a bond held to maturity gives more certainty.
Should You Put the Entire ₹2 Crore in One FD?
DICGC insures eligible bank deposits, principal plus interest, up to ₹5 lakh per depositor per bank, with deposits across branches of the same bank added together. On a ₹2 crore FD, that ₹5 lakh cover is just 2.5% of the corpus.
That doesn’t make a single large FD wrong, but it does make you think about spreading your money around more thoughtfully. If you split that ₹2 crore across several banks, more of it gets insured separately and reduces single-bank exposure. Bonds and debt funds sit outside DICGC cover, so they trade bank risk for issuer and market risk. Premature-withdrawal terms and your liquidity needs should shape the split as much as the rate does.
How Much Monthly Interest Does ₹2 Crore Earn at Different FD Rates?
A quick formula to keep handy: Monthly interest ≈ ₹20,000,000 × interest rate ÷ 12
| FD rate | Annual interest on ₹2 crore | Simple monthly equivalent |
| 5.00% | ₹10,00,000 | ₹83,333 |
| 6.00% | ₹12,00,000 | ₹100,000 |
| 6.50% | ₹13,00,000 | ₹108,333 |
| 7.00% | ₹14,00,000 | ₹116,667 |
| 7.50% | ₹15,00,000 | ₹125,000 |
| 8.00% | ₹16,00,000 | ₹133,333 |
| 8.50% | ₹17,00,000 | ₹141,667 |
A few things worth keeping in mind with this table:
- These are pre-tax, simple-interest estimates, not what lands in your account after TDS.
- Monthly-payout FDs don’t always pay exactly 1/12th of the annual rate; banks can shave off a fraction for the monthly option.
- A cumulative FD (interest reinvested, paid at maturity) will produce a different (usually higher) maturity value than a monthly-payout FD at the same rate because of compounding.
₹2 Crore FD Interest After Tax: What Do You Actually Keep?
At 7%, you’re looking at ₹14 lakh in interest every year, which works out to around ₹116,667 per month before the taxman takes his cut. But the headline number doesn’t really tell you what you’re left with, because the interest on your FD gets lumped in with your total income and taxed according to your slab rate. And when you’re dealing with ₹2 crore, the interest is so substantial that it can bump you up to a higher tax bracket.
TDS is a separate mechanism from your final tax liability: Banks deduct 10% TDS if the interest from your FD exceeds ₹50,000 in a year (₹100,000 for seniors), or 20% if your PAN details are missing. But the real tax you owe depends on your total income and tax slab, so when comparing banks, look at the post-tax income, not just the advertised rate.
₹2 Crore FD for Senior Citizens
Senior citizens typically get a rate premium of 0.25–0.75 percentage points over general customers, though this varies by bank and tenure. HDFC Bank, for instance, currently offers senior citizens 7.10% on its 3-year-1-day to under-4-year-7-months bucket, against 6.50% for general customers; ICICI Bank offers a comparable premium on similar tenures. At 7.10%, the simple monthly equivalent on ₹2 crore works out to roughly ₹118,333 before tax, subject to the bank’s actual monthly payout calculation.
Monthly Payout FD vs. Cumulative FD
The right structure depends on what the ₹2 crore is meant to do. Before choosing, weigh:
- Do you actually need a monthly income right now, or are you building up a corpus for later
- How long can you afford to have the money tied up
- premature-withdrawal penalties on a deposit this size; and
- how much liquidity you want to preserve versus letting compounding work.
If you’re someone who needs a regular income from your corpus, then a monthly-payout FD might be the way to go. On the other hand, if you don’t need the cash now and would rather let that interest compound into a bigger payout down the line, a cumulative FD could suit you better.
2 crore FD Frequently Asked Questions
It depends on the bank, tenure, and applicable interest rate. At a simple annual rate of 6.5%, ₹2 crore would generate about ₹1.08 lakh per month before tax if the FD pays interest monthly.
The classification depends on the bank’s current deposit-rate structure. Some banks use ₹2 crore as a threshold, while others use a higher threshold, such as ₹3 crore. Investors should check the bank’s rate card for the exact deposit amount. SBI, for example, currently uses ₹3 crore and above for its domestic bulk term deposits.
They serve different purposes. A monthly-payout FD can provide regular cash flow, while a cumulative FD generally reinvests the interest and pays the accumulated amount at maturity. The choice depends on whether you need periodic income or want to compound the returns.
No. DICGC deposit insurance is limited to ₹5 lakh per depositor per bank, including principal and interest, subject to its rules. Deposits held in different branches of the same bank are aggregated for this purpose.
Yes, DICGC applies its insurance limit separately to deposits held with different banks. However, ₹5 lakh is the maximum insured amount per depositor per bank, including principal and interest, rather than per FD.
Premature withdrawal may be available depending on the bank and FD terms, but penalties or a lower applicable interest rate can apply. Large-deposit and non-withdrawable FD products may have different conditions.
Disclaimer
Fixed returns do not constitute guaranteed or assured returns. Investments in corporate debt securities and municipal debt securities/securitized debt instruments are subject to credit risks, market risks, and default risks, including delay and/or default in payment. Read all the offer-related documents carefully. This blog/article should not be construed as financial advice or as an offer or recommendation to buy or sell any security or any products/services of/on GoldenPi or any product/services of its third-party client(s). For a detailed calculation of YTM, visit our website. T&C’s Apply.
