How much interest can you earn on a 20 Lakh FD

Investors looking for fixed monthly interest can include non-cumulative fixed deposits in their investment portfolios. You can cushion your high amounts in FDs against market risks and have a source of regular income. Here, you can compare the interest rate on 20 lakhs FD and other mutual funds, stocks, and Public Provident Fund investments.

What monthly interest can be earned on a Rs. 20 lakh fixed deposit?

Fixed deposits (FDs) 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 in 20 lakh 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. FD interest rates are 4-5% with most banks. 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 20 lakhs fixed deposit for senior citizens and citizens aged below 60:

Citizens aged below 60 investing in an FD:

Deposit Amount

Tenor

Interest rate

Interest earnings

Total earnings

Rs. 20 lakh

12 months

5.75% p.a.

Rs. 1,15,000

Rs. 21,15,000

Rs. 20 lakh

24 months

6.40% p.a.

Rs. 2,64,192

Rs. 22,64,192

Rs. 20 lakh

36 months

7.00% p.a.

Rs. 4,50,086

Rs. 24,50,086

Rs. 20 lakh

48 months

7.00% p.a.

Rs. 6,21,592

Rs. 26,21,592

Rs. 20 lakh

60 months

7.00% p.a.

Rs. 8,05,103

Rs. 28,05,103

Senior citizens investing in an FD:

Deposit Amount

Tenor

Interest rate

Interest earnings

Total earnings

Rs. 20 lakh

12 months

6.00% p.a.

Rs. 1,20,000

Rs. 21,20,000

Rs. 20 lakh

24 months

6.65% p.a.

Rs. 2,74,845

Rs. 22,74,845

Rs. 20 lakh

36 months

7.25% p.a.

Rs. 4,67,300

Rs. 24,67,300

Rs. 20 lakh

48 months

7.25% p.a.

Rs. 6,46,179

Rs. 26,46,179

Rs. 20 lakh

60 months

7.25% p.a.

Rs. 8,38,027

Rs. 28,38,027

  • 20 lakh fixed deposit interest for senior citizens is higher than citizens aged below 60as Bajaj Finance offers a benefit of an additional interest rate to senior citizens.
  • To earn a fixed monthly interest on FD of 20 lakhs, 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 20 Lakhs at a rate as high as 7.45% p.a., unaffected by market fluctuations, once you deposit your funds in Bajaj Finance Fixed Deposit.

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