What is the interest rate for ₹20 lakhs?

A fixed deposit (FD) of ₹20 lakhs offers reliable returns, with interest rates usually starting from 7% p.a. The rate and earnings depend on tenure, payout options and type of interest rate calculation used by the financial institution. Here’s what to consider:

• Rate Range: Rates typically start at 7% per year, depending on the FD tenure, which is for a tenure of 1–5 years or sometimes more.
• Interest Earnings: At around 7% p.a. for 5 years, compounded quarterly, ₹20 lakhs may earn around ₹8 lakh total interest.
• Reliable Investment: FDs represent a stable investment opportunity under which your ₹20 lakhs remain locked-in in the financial institution while yielding fixed returns.
• Loan Facility: You can typically borrow up to 75-90% of the FD amount for emergencies without closing it.

Compare rates from different financial institutions, like banks and non-banking financial institutions (NBFCs), check financial ratings, and choose a tenure that fits your goals. Earnings vary by compounding and market conditions.