In a welcome development for conservative investors, Fixed Deposits (FDs) are once again proving to be a reliable and attractive option. Several banks and Non-Banking Financial Companies (NBFCs) are now offering higher interest rates, giving investors a chance to earn ₹32,000 interest on a ₹2 lakh FD—making this a golden opportunity for those looking for stable and risk-free returns.
FD Rates on the Rise
With the RBI maintaining a firm stance on inflation and banks competing for retail deposits, many financial institutions have increased FD interest rates. Some banks and corporate FDs are now offering interest rates as high as 8.00% to 8.50% per annum, especially for senior citizens and longer-term deposits.
How Do You Earn ₹32,000 on ₹2 Lakh?
Here’s a simple breakdown:
- Deposit Amount: ₹2,00,000
- Interest Rate: ~8.00% per annum
- Tenure: 2 years
- Maturity Amount: Approx. ₹2,32,000
- Total Interest Earned: ₹32,000
This calculation assumes non-cumulative interest, where interest is compounded annually and reinvested.
Banks & NBFCs Offering High FD Rates (as of June 2025):
| Institution | Interest Rate (General) | Interest Rate (Senior Citizens) |
|---|---|---|
| SBI | 6.90% | 7.40% |
| HDFC Bank | 7.00% | 7.50% |
| ICICI Bank | 7.25% | 7.75% |
| Bajaj Finance | 8.35% | 8.60% |
| Mahindra Finance | 8.20% | 8.45% |
Extra Benefits for Senior Citizens
Senior citizens are being offered 0.25% to 0.50% higher interest than general investors. This makes FDs an especially attractive option for retirees looking for a steady income with no market risk.
Why Consider FDs in 2025?
Safe and risk-free investment
Fixed returns, unaffected by market volatility
Flexible tenures (from 7 days to 10 years)
Loan facility against FD
Tax-saving options under Section 80C (for 5-year FDs)
Things to Keep in Mind
- TDS is applicable on interest earned above ₹40,000 (₹50,000 for seniors)
- Compare FD rates across banks and NBFCs before investing
- Opt for cumulative or non-cumulative FDs based on your income needs
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Conclusion
If you’re looking for a safe and stable investment, now is the time to act. With some institutions offering up to 8.5% returns, a ₹2 lakh FD can fetch you ₹32,000 or more in interest over just two years. It’s a smart move for anyone who wants peace of mind and predictable income in 2025.
Fixed Deposit (FD) – ₹32,000 Interest on ₹2 Lakh FAQ
1. How can I earn ₹32,000 on a ₹2 lakh Fixed Deposit?
You can earn ₹32,000 in interest by investing ₹2,00,000 in an FD with an interest rate of around 8.00% per annum for 2 years. The interest is compounded and paid at maturity.
2. Which banks or NBFCs are offering high FD rates in June 2025?
Some top institutions offering attractive FD rates include:
- Bajaj Finance – up to 8.60% (for seniors)
- Mahindra Finance – up to 8.45%
- ICICI Bank – up to 7.75%
- HDFC Bank – up to 7.50%
- SBI – up to 7.40%
3. What is the best tenure to earn maximum interest on FDs?
Typically, 2 to 3 years is a good tenure to earn high returns with current interest rates. However, rates and returns may vary based on market conditions.
4. Is the interest earned on FDs taxable?
Yes. Interest income above ₹40,000 per year (₹50,000 for senior citizens) is subject to Tax Deducted at Source (TDS) and must be reported in your income tax returns.
5. Are corporate FDs safe to invest in?
Reputed NBFCs like Bajaj Finance and Mahindra Finance offer high-interest corporate FDs, which are generally considered safe when they hold high credit ratings (CRISIL/ICRA). Always verify the credit rating before investing.
6. Is there any benefit for senior citizens?
Yes. Most banks and NBFCs offer 0.25% to 0.50% higher interest rates for senior citizens on FDs.