Rs. 20 Lakh Fixed Deposit (FD) Interest Per Month in 2024 (2024)

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 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 thecorporate FDmore 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 forRs. 20 lakhs fixed deposit for senior citizens and citizens aged below 60

Citizens aged below 60 investing in an FD:

Senior citizens investing in an FD:

• 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 8.65% p.a., unaffected by market fluctuations once you deposit your funds in Bajaj Finance Fixed Deposit.

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 orCumulative 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.

Conclusion

Fixed Deposit is a safe and secure investment option that provides a fixed rate of return. A Rs. 20 lakh fixed deposit can prove to be a valuable source of income for investors looking for a steady income stream. Before investing in a fixed deposit, calculate the interest rate offered by various financial institution.

Calculate your expected investment returns with the help of our investment calculators

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