Thinking about investing your hard-earned money but unsure about the best option? Let’s talk about one of the most secure and popular investment options—a 2-year Fixed Deposit (FD). Recently, many banks have launched attractive FD schemes offering bumper returns on a 2-year term, making it a great choice for investors seeking stability and good returns.
Why Consider a 2-Year FD?
Many investors have already chosen FDs in various banks, enjoying guaranteed interest on their deposits. Similarly, you too can select any bank and open a 2-year FD. If you prefer a longer term, you can even choose a longer duration, but a 2-year FD itself offers impressive returns.
FDs are widely considered safe investments, with minimal risk compared to other market-linked instruments. Most banks have made the FD process hassle-free, ensuring that anyone who wants to earn a good return on their investment can do so easily.
Highlights of a 2-Year FD
- Fixed interest rates—you know exactly what you’ll get at the end of the term.
- Loan facility—you can get a loan against your FD if you need urgent funds.
- Attractive returns—even with a shorter term like 2 years, the returns are quite rewarding.
- Predictable maturity amount—no surprises, only stability.
- Ideal for first-time investors—safe, easy, and rewarding.
Interest Rates on 2-Year FD Across Banks
Different banks offer different FD interest rates based on your profile. Typically, for regular citizens, banks offer between 7% and 7.75%, while for senior citizens, the rates range from 7.50% to 8.25%. Some of the most trusted banks offering 2-year FDs include:
- State Bank of India (SBI)
- HDFC Bank
- Axis Bank
- Kotak Mahindra Bank
- Punjab National Bank
- Bank of Baroda
- India Post Payments Bank
Calculate Your Returns
Let’s say you invest ₹5 lakh in a 2-year FD at 7% interest. By the end of the term, you’ll earn ₹74,441 as interest—meaning your total amount at maturity will be ₹5,74,441. Of course, investing a higher amount will get you higher returns, while a smaller deposit will yield proportionally lower returns.
How to Invest in a 2-Year FD?
- Choose the bank that suits your needs.
- Collect the required documents (like ID proof, address proof, etc.).
- Visit the nearest bank branch.
- Learn about the FD details and fill out the application form.
- Attach photocopies of the required documents.
- Deposit the FD amount at the bank counter.
- The bank will open your FD account, and you’re all set!