FD are considered safe investments with minimal risk. When one thinks of capital safety, the first investment that comes to mind is an FD. With corporate FDs, the interest rate is predetermined, fixed for the entire tenor, and comparatively high. If you invest Rs. 20 lakh in a FD for five years with Bajaj Finance, your applicable interest can be relatively higher. You can invest for 12-60 months to make the corporate FD more suitable to meet your short-term or long-term financial objectives.
With Bajaj Finance, investors can opt for periodic interest payouts as per their liquidity requirements by depositing savings in the non-cumulative FD plan. This plan gives investors the option of choosing between monthly, quarterly, half-yearly or annual interest payouts.
Following are the calculations of interest earnings for Rs. 20 lakhs fixed deposit for senior citizens and citizens aged below 60
Citizens aged below 60 investing in an FD:
Deposit Amount
|
Tenure
|
Interest rate
|
Interest earnings
|
Total earnings
|
Rs. 20 lakh
|
12 months
|
7.40% p.a.
|
Rs. 1,43,200
|
Rs. 21,43,200
|
Rs. 20 lakh
|
24 months
|
7.30% p.a.
|
Rs. 3,01,200
|
Rs. 23,01,200
|
Rs. 20 lakh
|
36 months
|
7.85% p.a.
|
Rs. 5,09,305
|
Rs. 25,09,305
|
Rs. 20 lakh
|
44 months
|
8.00% p.a.
|
Rs. 6,54,185
|
Rs. 26,54,185
|
Rs. 20 lakh
|
60 months
|
7.85% p.a.
|
Rs. 9,18,305
|
Rs. 29,18,305
|
Senior citizens investing in an FD:
Deposit Amount
|
Tenure
|
Interest rate
|
Interest earnings
|
Total earnings
|
Rs. 20 lakh
|
12 months
|
7.65% p.a.
|
Rs. 1,53,000
|
Rs. 21,53,000
|
Rs. 20 lakh
|
24 months
|
7.67% p.a.
|
Rs. 3,30,641
|
Rs. 23,30,641
|
Rs. 20 lakh
|
36 months
|
8.10% p.a.
|
Rs. 5,26,806
|
Rs. 25,26,806
|
Rs. 20 lakh
|
44 months
|
8.25% p.a.
|
Rs. 6,76,900
|
Rs. 26,76,900
|
Rs. 20 lakh
|
60 months
|
8.10% p.a.
|
Rs. 9,52,286
|
Rs. 29,52,286
|
- Rs. 20 lakh fixed deposit interest for senior citizens is higher than citizens aged below 60 as Bajaj Finance offers a benefit of an additional interest rate to senior citizens.
- To earn a fixed monthly interest on FD of Rs. 20 lakh, you must make a non-cumulative FD. Otherwise, you can invest in a cumulative Bajaj Finance FD to get a lump sum amount at the maturity date.
Thus, you can earn attractive monthly interest on your Rs. 20 lakh at a rate as high as up to 8.60% p.a., unaffected by market fluctuations once you deposit your funds in Bajaj Finance Fixed Deposit. You can use the Bajaj Finance FD calculator to get insight into the returns on your investment.
TDS on Rs. 20 lakh fixed deposit
Fixed deposits (FDs) are a preferred investment choice for individuals seeking stable and assured returns. If you have invested Rs. 20 lakh in an FD, understanding the tax implications is essential, especially regarding Tax Deduction at Source (TDS) on the interest earned.
TDS on fixed deposits is deducted based on the interest earned. According to the Income Tax Act:
- For regular taxpayers, TDS is deducted at 10% if the annual interest exceeds Rs. 50,000.
- For senior citizens, the exemption limit is Rs. 1,00,000 per financial year.
- If PAN is not submitted, TDS is deducted at 20% instead of the standard rate.
Documents Required for Opening Rs. 20 lakh FD
- PAN Card
- Any KYC document: Aadhar card/Passport/Driving License/Voter ID
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.
