A fixed deposit is technically the most secure way to deposit your hard earned money. Most Indians prefer to invest their money in fixed deposits and earn incremental interest amounts on the total amount over a gradual period of time. This is mainly due to the fact that fixed deposits are a way towards the safest investment platform for investors seeking guaranteed returns, irrespective of the turbulence in the market.
A fixed deposit is the best option when you have the capacity to deposit a large sum of money with the bank. If you wish to invest a large portion of your money a ₹20 Lakhs fixed deposit can give you guaranteed returns over a fixed period of time. The interest for ₹20 Lakhs fixed deposit per month that you earn is quite good. You can use the FD compound interest calculator to compute the returns on a monthly basis. All you need to do is enter the tenor, rate of interest and amount invested.
While fixed deposits are a more secure means, understanding interest rates can be confusing for some people. Here we explain in simple terms how the monthly ₹20 Lakhs deposit interest per month works.
List of NBFC Fixed Deposit Interest Rates for ₹20 Lakhs
Although choosing traditional methods of investing in financial institutions like banks can be a thoughtful investment for your fixed deposits, there are also options for you to invest in several NBFCs for guaranteed monthly interest on ₹20 Lakhs FD.
NBFC |
Interest Rates |
Monthly Interest Amount |
Maturity Amount |
7.85% |
₹12,633 |
₹29,18,305 |
|
7.65% |
₹12,350 |
₹28,91,347 |
|
7.75% |
₹12,083 |
₹29,04,801 |
Note: The maturity amount pertains to the interest received on maturity along with the base deposit
Disclaimer: The aforementioned NBFC FD interest rates are valid as of 20th January 2023, and may be subject to change as per bank announcements.
List of Banks Fixed Deposit Interest Rates for ₹20 Lakhs
However you can also take a look at the fixed deposit interest rates offered by some of the top banks as well to help you make an informed choice. The list of banks is curated for you which enlists monthly interest on ₹20 Lakhs FD:
The interest rates shown below are for bank FDs with an investment tenor of 5 years.
Banks |
Interest rates |
Monthly Interest Amount |
Maturity Amount |
ICICI Bank |
6.75% |
₹13,337 |
₹28,00,229 |
State Bank of India |
6.75% |
₹13,337 |
₹28,00,229 |
HDFC Bank |
7.50% |
₹15,109 |
₹29,06,588 |
Axis Bank |
7.75% |
₹15,715 |
₹29,42,916 |
IDFC Bank |
6.50% |
₹12,760 |
₹27,65,634 |
Bank of India |
6.25% |
₹12,190 |
₹27,31,459 |
Punjab National Bank |
6.90% |
₹13,686 |
₹28,21,190 |
Note: The maturity amount pertains to the interest received on maturity along with the base deposit
Disclaimer: The aforementioned Bank FD interest rates are valid as of 22-December-2022, and may be subject to change as per bank announcements.
Why Invest ₹20 Lakhs in an FD
While multiple investment schemes can be appealing to many people, investing in a fixed deposit system is still the most preferred option for assured returns. Investing in a ₹20 Lakhs fixed deposit can be the best investment decision for you. A number of banks offer attractive monthly interest for a ₹20 Lakhs fixed deposit. Fixed Deposits are typically the first-choice for everyone as monthly interest on a ₹20 Lakhs fixed deposit provides safe investment opportunities while also ensuring a fixed return irrespective of market fluctuations.
Check Monthly Interest Rate on your Fixed Deposits
Here you can check the monthly interest rate on your Fixed Deposit investments.
FAQs
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✔️Is there a minimum and maximum cap on ₹20 Lakh FD interest per month?
Minimum and maximum cap on the monthly interest for ₹20 Lakhs fixed deposit depends on the bank you are opting for your investment. Interest rate cap terms will be outlined in your fixed deposit investment prospectus.
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✔️Is monthly interest for ₹20 lakhs fixed deposit taxable?
In accordance with the laws in force in India, interest earned on FD accounts is entirely taxable since the income you earn from your ₹20 Lakh FD monthly interest is considered an alternate income. The interest amount with your FDs is clubbed with your total income and is taxed accordingly. The tax rates depend on which slab applies to your total taxable income, as specified in the Income Tax Act. However, it is important to note that if total income (including FD interest) is below ₹5 Lakhs a year they are exempted from taxation.
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✔️What are the documents required for a ₹20 Lakhs fixed deposit?
In order to enjoy an alternate income brought by ₹20 Lakhs fixed deposit interest per month you will be required to submit your proof of identity where you can submit PAN card, Aadhaar card, driving licence, voter’s id etc. Also, you will be required to submit proof of address, including passport, registered rent agreement, bank passbook with photo, electricity bill, etc. If you are an entity like companies or HUFs, you will be required to submit relevant documents, such as HUF deed, certificate of registration, articles/memorandum of association, partnership deed etc.
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✔️What is the eligibility criteria for ₹20 Lakhs fixed deposit?
For investing in a fixed deposit to grow your money through a ₹20 Lakh FD interest per month you need to fulfil conditions like: minimum age to invest in fixed deposit should be above 18 years. You should be a resident of India. Matching this eligibility criteria would give you access to multiplying your corpus by earning through ₹20 Lakhs fixed deposit interest per month.
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✔️How to calculate FD interest on ₹20 Lakhs?
You can also calculate your monthly interest for ₹20 lakhs fixed deposit manually. You can simply use the arithmetical formula: M= P + P {(1 + i/100) t – 1}, where P stands for the principal amount, i stands for the rate of interest for each period, and t stands for tenor.
