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In Summary
Monthly interest on a Rs. 20 lakh Fixed Deposit depends on tenure, investor category, and the applicable non-cumulative interest rate.
- Customers below 60 receive monthly payout rates from 6.60% to 7.49% p.a.
- Senior citizens receive monthly payout rates from 6.97% to 7.86% p.a.
- The highest monthly payout for customers below 60 is approximately Rs. 11,933.33.
- The highest monthly payout for senior citizens is approximately Rs. 12,483.33.
- Cumulative rates reach 7.75% p.a. for customers below 60 and 8.15% p.a. for senior citizens.
Bajaj Finance Fixed Deposit offers tenures ranging from 12 to 60 months.
These figures use rates effective from 1 May 2026 and represent estimated payouts before tax.
With Bajaj Finance Fixed Deposits, you can earn interest up to 8.15% p.a., with flexible payout options (monthly, quarterly, etc.
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How much monthly interest can Rs. 20 lakh earn in an FD?
The Bajaj Finance Fixed Deposit monthly payout depends on whether the investor is below 60 or qualifies as a senior citizen.
Monthly interest = Rs. 20,00,000 × Applicable annualised monthly payout rate ÷ 12
Investor category Tenure Monthly payout rate Monthly interest Customer below 60 12 to 17 months 6.60% (6.60%) p.a Rs. 10,683.33 Customer below 60 18 to 30 months 6.79% (6.79)% p.a. Rs. 11,066.67 Customer below 60 31 to 60 months 7.49% (7.49)% p.a. Rs. 11,933.33 Senior citizen 12 to 17 months 6.97% (6.97%) p.a. Rs. 11,233.33 Senior citizen 18 to 30 months 7.16% (7.16%) p.a. Rs. 11,616.67 Senior citizen 31 to 60 months 7.86% (7.86%) p.a. Rs. 12,483.33 The 7.40% and 7.75% rates apply to at-maturity payouts, not monthly interest payments.
Investors should use the Fixed Deposit calculator to estimate their returns before selecting a payout frequency.
Lock in high interest rates with Bajaj Finance FDs
The following interest rates apply to deposits from Rs. 15,000 to Rs. 3 crore, effective 1 May 2026.
Investor category 12 to 17 months 18 to 30 months 31 to 60 months Customer below 60, at maturity 6.60% p.a. 6.85% p.a. 7.40% p.a. Customer below 60, monthly 6.41% p.a. 6.64% p.a. 7.16% p.a. Senior citizen, at maturity 6.95% p.a. 7.20% p.a. 7.75% p.a. Senior citizen, monthly 6.74% p.a. 6.97% p.a. 7.49% p.a. The rate selected during booking remains applicable for that deposit tenure, although rates offered for new deposits can change.
FD interest earnings on Rs. 20 lakh – Citizens below 60 vs. Senior Citizens
Avoid these mistakes while booking FD
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The following calculations show indicative cumulative maturity values using annual compounding and the applicable rate for each selected tenure.
For individuals below 60 years
Deposit amount Tenure Interest rate Interest earnings (Rs.) Total earnings (Rs.) Rs. 20 lakh 12 Months 6.80% p.a. 1,36,000 21,36,000 Rs. 20 lakh 18 Months 7.00% p.a. 2,14,996 22,14,996 Rs. 20 lakh 31 Months 7.75% p.a. 4,26,531 24,26,531 Rs. 20 lakh 60 Months 7.75% p.a. 9,04,801 29,04,801 For senior citizens aged 60 years or above
Deposit amount Tenure Interest rate Interest earnings (Rs.) Total earnings (Rs.) Rs. 20 lakh 12 Months 7.20% p.a. 1,44,000 21,44,000 Rs. 20 lakh 18 Months 7.40% p.a. 2,27,578 22,27,578 Rs. 20 lakh 31 Months 8.15% p.a. 4,50,015 24,50,015 Rs. 20 lakh 60 Months 8.15% p.a. 9,59,120 29,59,120 These calculations are rounded to the nearest rupee. Actual maturity values may vary slightly when the tenure includes a leap year.
Bajaj Finance offers up to 0.40% extra interest for senior citizens, ensuring better growth on your Rs. 20 lakh investment. Open FD Account for Senior Citizens.
Want monthly income or a lump sum maturity? Choose your FD type
Your cash-flow requirements should determine whether you select a cumulative or non-cumulative Bajaj Finance Fixed Deposit.
Requirement Suitable option How interest is paid Regular monthly income Non-cumulative Fixed Deposit Credited monthly Quarterly or annual income Non-cumulative Fixed Deposit Credited at the selected interval Larger maturity amount Cumulative Fixed Deposit Principal and accumulated interest paid at maturity Long-term financial goal Cumulative Fixed Deposit Interest remains invested for compounding Monthly payouts provide regular income, while cumulative deposits generally create a larger maturity amount because accumulated interest continues earning interest.
TDS on a Fixed Deposit of Rs. 20 Lakh
Tax Deducted at Source can apply when aggregate Fixed Deposit interest exceeds the applicable threshold during the relevant year. For NBFC deposits, TDS generally applies when annual interest exceeds Rs. 10,000, including for eligible senior citizens. TDS is generally deducted at 10% when PAN is available and 20% when valid PAN details are unavailable. A Rs. 20 lakh Bajaj Finance Fixed Deposit earns more than Rs. 10,000 annually under every current tenure and payout option.
TDS does not represent the investor’s final tax liability. Interest remains taxable according to the applicable income-tax slab. Eligible investors may submit Form 15G or Form 15H when they satisfy the prescribed conditions for receiving interest without TDS.
What documents are needed for a Rs. 20 lakh FD?
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Resident Indian individuals can apply for a Bajaj Finance Fixed Deposit after satisfying the applicable eligibility and verification requirements.
Required documents include:
- PAN
- Aadhaar card, passport, driving licence, or voter identification card
- Bank details for payment and interest credit
Documents may also be fetched from registered KYC records when this facility is available during the application journey.
No branch visit needed—just complete KYC digitally and deposit your funds. Open a Bajaj Finance FD online and start earning up to 8.15% p.a. returns.
Reinvestment or Cumulative FD
Reinvestment or Cumulative Fixed Deposit (FD) is a type of fixed deposit where the interest earned on the principal amount is not paid out to the investor regularly. Instead, the interest is added to the principal amount. The interest is then reinvested with the principal amount.
In simple terms, with a cumulative FD, the interest compounds over time, and the investor receives the entire maturity amount (principal + accumulated interest) at the end of the FD tenure.
A cumulative Fixed Deposit reinvests the interest earned instead of paying it monthly, quarterly, half-yearly, or annually. The accumulated interest is added to the deposit, and future interest is calculated on the increased amount during the remaining tenure. At maturity, the investor receives the Rs. 20 lakh principal together with the accumulated interest, subject to applicable tax provisions. Cumulative interest suits investors saving towards a future lump-sum goal who do not require regular income during the selected tenure.
Conclusion
A Rs. 20 lakh Bajaj Finance Fixed Deposit can provide assured monthly income or accumulate interest towards a larger maturity amount. Customers below 60 can receive up to Rs. 11,933.33 monthly, while senior citizens can receive up to Rs. 12,483.33. Investors choosing cumulative interest for 60 months may receive approximately Rs. 28,57,929, or Rs. 29,04,801 as eligible senior citizens. Compare the applicable rate, payout frequency, taxation, liquidity requirements, and tenure before booking the Fixed Deposit.
Check out different FD Rates
Fixed Deposit variants
Get ROI up to
8.15% p.a.
Senior citizen
Starting with just Rs. 15,000
Get ROI up to
7.75% p.a.
Age below 60 years
Starting with just Rs. 15,000
Get ROI up to
7.75% p.a.
Minor
Starting with just Rs. 15,000
Get ROI up to
7.75% p.a.
HUF
Starting with just Rs. 15,000
Get ROI up to
7.75% p.a.
Sole proprietor
Starting with just Rs. 15,000
Locate to your nearest FD branch
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Frequently Asked Questions
Overview
Is there a minimum and maximum cap on Rs. 20 Lakh FD interest per month?
There is no separate payout cap because monthly interest depends on the deposit amount, tenure, category, and applicable rate.
Is the monthly interest for a Rs. 20 Lakh fixed deposit taxable?
Yes, monthly Fixed Deposit interest is taxable according to the investor’s applicable income-tax slab and may attract TDS.
How do I start a Bajaj Finance FD online?
Open the application, verify your mobile number, enter investment details, complete KYC, add bank details, and make payment.
What is the yearly interest on a 20 lakh FD?
Yearly monthly-payout interest ranges from Rs. 1,28,200 to Rs. 1,43,200, or Rs. 1,34,800 to Rs. 1,49,800 for senior citizens.
What are the documents required for a Rs. 20 Lakhs fixed deposit?
Applicants need PAN and one KYC document, such as Aadhaar, passport, driving licence, or voter identification card.
What are the eligibility criteria for a Rs. 20 Lakh fixed deposit?
Resident Indian individuals, including senior citizens aged 60 years or above, can apply after completing the required verification.
How to grow Rs. 20 lakh to Rs. 1 crore?
At 7.75% annual compounding, Rs. 20 lakh reaches approximately Rs. 1 crore after 21.6 years before tax, assuming unchanged renewal rates.
How to calculate FD interest on Rs. 20 Lakhs?
Multiply Rs. 20,00,000 by the annualised payout rate and divide by 12 to estimate monthly interest.
How much tax for 20 lakh FD?
The exact tax depends on total taxable income, applicable slab, interest earned, deductions, and the selected tax regime.
Can I deposit 20 lakhs in FD?
Yes, you can deposit Rs. 20 lakh across one or multiple FDs. But only Rs. 5 lakh per bank per depositor is insured by DICGC. To maximise safety, consider splitting your deposits across banks or branches.
How to invest 20 lakhs for monthly income?
Select a non-cumulative Fixed Deposit with monthly payouts after comparing tenure-based rates, taxation, liquidity needs, and issuer credit ratings.
Disclaimer
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