A one-year fixed deposit (FD) can provide a safe temporary place to store a large unexpected sum of money while deciding on long-term investment plans. Let’s consider a specific scenario involving ₹20 Lakh fixed deposit for a period of 1 month.
Monthly Interest on ₹20 lakh Fixed Deposit
Refer to the table given below to see the monthly interest obtained from a ₹20 lakh fixed deposit at varying interest rates between 4% to 10% per year.
| Interest Rate | Monthly Interest for ₹20 Lakh FD | Yearly Interest for ₹20 Lakh FD |
|---|---|---|
| 4% | 6667 | 81,208 |
| 4.5% | 7500 | 91,530 |
| 5% | 8333 | 1,01,891 |
| 5.5% | 9167 | 1,12,290 |
| 6% | 10000 | 1,22,727 |
| 6.5% | 10833 | 1,33,203 |
| 7% | 11667 | 1,43,718 |
| 7.5% | 12500 | 1,54,272 |
| 8% | 13333 | 1,64,864 |
| 8.5% | 14167 | 1,75,496 |
| 9% | 15000 | 1,86,167 |
| 9.5% | 15833 | 1,96,877 |
| 10% | 16667 | 2,07,626 |
Please note that the above table indicates how much interest you will earn for the various rates. This interest rate is subject to change.
Are you looking for a personal loan?
Get Personal Loan Online Up to ₹15 Lakhs By entering your number, you're agreeing to Terms & Conditions & Privacy Policy.
Comparative Analysis of FD Rates From Top Lenders
FDs provide guaranteed returns, but the interest rates can vary a lot between different lenders. By comparing the rates, an investor can find the FD that offers the highest interest for their specific investment amount and term.
In this case of ₹20 lakhs for 1 year, let’s take a look at the interest rates offered by various lenders.
₹20 Lakh FD Monthly Interest For General Public Vs Senior Citizens
Below is the table displaying the monthly interest rates provided by various banks to the general public for a 1-year fixed deposit of ₹20 lakh.
| Bank | Interest Rate (p.a.) (For General Public) | Monthly Interest (For General Public) | Interest Rate (p.a.) (For Senior Citizens) | Monthly Interest (For Senior Citizens) |
|---|---|---|---|---|
| Bandhan Bank | 7.85% | ₹13083 | 8.35% | ₹13,917 |
| RBL Bank | 7.80% | ₹13000 | 8.30% | ₹13,833 |
| YES Bank | 7.75% | ₹12917 | 8.25% | ₹13,750 |
| Indian Overseas Bank | 7.25% | ₹12083 | 8.25% | ₹13,750 |
| IndusInd Bank | 7.25% | ₹12083 | 7.75% | ₹12,917 |
| Punjab National Bank | 7.25% | ₹12083 | 7.75% | ₹12,917 |
| Indian Bank | 7.25% | ₹12083 | 7.75% | ₹12,917 |
| State Bank of India | 7.10% | ₹11833 | 7.60% | ₹12,667 |
| Union Bank of India | 6.70% | ₹11167 | 6.95% | ₹11,583 |
Monthly Interest for ₹20 Lakh FD in Public Sector Banks
Take a look at the table below to explore the various interest rates provided by public sector banks for a ₹20 lakh fixed deposit.
| Public Sector Banks | Interest Rates | Monthly Interest for ₹10 Lakh FD |
|---|---|---|
| Punjab & Sind Bank | 7.40% | ₹12,333 |
| Indian Overseas Bank | 7.30% | ₹12,167 |
| Indian Bank | 7.25% | ₹12,083 |
| Punjab National Bank | 7.25% | ₹12,083 |
| Union Bank of India | 7.25% | ₹12,083 |
| Bank of India | 7.25% | ₹12,083 |
| Canara Bank | 7.25% | ₹12,083 |
| Central Bank of India | 7.25% | ₹12,083 |
| Bank of Baroda | 7.25% | ₹12,083 |
| State Bank of India | 7.10% | ₹11,833 |
| Bank of Maharashtra | 6.50% | ₹10,833 |
| UCO Bank | 6.50% | ₹10,833 |
Note- The interest rates are subject to change. Please check the official website for the latest information.
Monthly Interest for ₹20 Lakh FD in Private Sector Banks
Take a look at the table below to explore the various interest rates provided by private sector banks for a ₹20 lakh fixed deposit.
| Private Sector Banks | Interest Rates | Monthly Interest for ₹20 Lakhs FD |
|---|---|---|
| IndusInd Bank | 7.75% | ₹12,917 |
| RBL Bank | 7.50% | ₹12,500 |
| Bandhan Bank | 7.25% | ₹12,083 |
| DCB Bank | 7.15% | ₹11,917 |
| Karur Vysya Bank | 7.00% | ₹11,667 |
| Federal Bank | 6.80% | ₹11,333 |
| City Union Bank | 6.75% | ₹11,250 |
| Axis Bank | 6.70% | ₹11,167 |
| ICICI Bank | 6.70% | ₹11,167 |
| HDFC Bank | 6.60% | ₹11,000 |
| IDFC First Bank | 6.50% | ₹10,833 |
Note:The interest rates are subject to change. Please check the official website for the latest information.
Monthly Interest for ₹20 Lakh FD in Small Finance Banks
Take a look at the table below to explore the various interest rates provided by small finance banks for a ₹20 lakh fixed deposit.
| Small Finance Banks | Interest Rates | Monthly Interest for ₹20 Lakhs FD |
|---|---|---|
| Shivalik Small Finance Bank Limited | 8.70% | ₹14500 |
| Jana Small Finance Bank | 8.50% | ₹14167 |
| Ujjivan Small Finance Bank | 8.25% | ₹13750 |
| Equitas Small Finance Bank | 8.20% | ₹13667 |
| Utkarsh Small Finance Bank | 8.00% | ₹13333 |
| Unity Small Finance Bank | 7.85% | ₹13083 |
| North East Small Finance Bank | 7.75% | ₹12917 |
| AU Small Finance Bank | 7.75% | ₹12917 |
| Fincare Small Finance Bank | 7.65% | ₹12750 |
| Capital Small Finance Bank Limited | 7.50% | ₹12500 |
| Suryoday Small Finance Bank | 6.85% | ₹11417 |
| ESAF Small Finance Bank | 6.00% | ₹10000 |
Note: The interest rates are subject to change. Please check the official website for the latest information.
Looking for a personal loan?
Get Personal Loan Online Up to ₹15 Lakhs By entering your number, you're agreeing to Terms & Conditions & Privacy Policy.
Monthly Interest on ₹20 Lakh FD in NBFCs
| NBFCs | Interest Rates | Monthly Interest for ₹20 Lakhs FD |
|---|---|---|
| Shriram Finance | 8.6 | ₹14333 |
| Bajaj Finance Ltd. | 8.05 | ₹13417 |
| Mahindra Finance Ltd. | 8.05 | ₹13417 |
| Sundaram Finance | 7.95 | ₹13250 |
| LIC Housing Finance | 7.75 | ₹12917 |
| PNB Housing Finance Ltd. | 7.65 | ₹12750 |
Check monthly interest for other deposit amounts from below:
Depending on your total income, you’ll be taxed in a specific income tax bracket. To understand your true profit from the FD, you need to consider the taxes you’ll pay on the interest earned. Here’s a simplified formula:
After Tax Return = Interest Earned on FD – Taxes Paid on Interest
For example: Let’s say your FD offers ₹50,000 interest in a year, and your tax bracket is 30%. You’ll need to pay ₹15,000 (₹50,000 * 30%) in taxes. So, your actual return after considering taxes would be ₹35,000 (₹50,000 – ₹15,000).
FD Calculator
Calculating the maturity value of a fixed deposit involves compound interest, which can be complex to do manually. Using an FD calculator makes this process easier and provides accurate results quickly. You can use an FD calculator to compare the maturity amounts for various tenures and interest rates. With an FD calculator, you can choose the FD that best suits your investment goals after proper research.
Fixed Deposit (FD) Calculator
Years
Months
Days
An FD calculator considers several factors to calculate your maturity amount:
- Principal amount: This is the amount of money you deposit in the FD.
- Interest rate: The interest rate offered by the bank or NBFC on your FD. These rates can vary depending on the type of FD, tenure, and customer profile (senior citizens often get higher rates).
- Tenure: The period for which your FD is locked in.
- Frequency of Interest Compounding: This refers to how often the interest earned on your FD is added to the principal amount. More frequent compounding generally leads to a higher maturity amount due to interest on interest.
Note: The interest rates you enter in the calculator may differ from the actual rates offered by the bank at the time of deposit. FD calculators are for estimation purposes only. The actual maturity amount may vary slightly due to rounding or other factors.
Do you need an instant loan?
Get Personal Loan Online Up to ₹15 Lakhs
By entering your number, you're agreeing to Terms & Conditions & Privacy Policy.
Monthly Interest Calculation on ₹20 Lakh FD
To calculate the monthly interest on a ₹20 lakh Fixed Deposit (FD) for a 1-year tenure at 8% interest, we can use the following formula:
Monthly Interest Calculation for FD maturity amount
Monthly Interest = (Principal × Rate of Interest) / (12 × 100)
Where,
- Principal (P) = ₹20,00,000 (20 lakh)
- Interest rate (R) = 8% per year
- Time (T) = 1 year (We need to convert this to months for monthly interest calculation)
Monthly Interest = (₹2,000,000 × 8) / (12 × 100)
= ₹13,333.33
Therefore, the monthly interest on a ₹20 lakh FD for a 1-year tenure at 8% interest is approximately ₹13,333.
Not sure of your credit score? Check it out for free now!
Steps to Open an FD Account For ₹20 Lakh
Opening a Fixed Deposit (FD) account is a popular way to earn guaranteed returns on your savings. If you have ₹20 lakh you’d like to invest, here are the key steps to open an FD account:
Visit a branch
- Step 1: Inform your intent to open an FD for ₹20 lakh.
- Step 2: Select your preferred FD tenure and interest payout frequency.
- Step 3: Review details and confirm the deposit.
Online Platform (if available)
- Step 1: Use the online FD calculator to estimate the maturity amount.
- Step 2: Fill out the online application specifying the deposit amount, tenure, and payout preference.
- Step 3: Transfer the ₹20 lakh deposit amount online.
Check Eligibility and Interest Rates
- Generally, anyone with valid ID and address proof can open an FD account. However, there may be specific eligibility requirements depending on the bank and the type of FD account.
- Interest rates offered by banks can vary depending on the tenure of the FD, the type of account, and your relationship with the bank (e.g., senior citizens may get higher rates).
Apply for a loan now!