Fixed deposits have always been popular as they are among the most secure financial instruments, offering payouts and returns greater than savings accounts. Being the safest, this financial tool is used by many, especially retirees, to earn a stable flow of income. Other young professionals and investors, too, invest in fixed deposit products of prominent banks offering a decent interest rate. However, the fixed deposits investment option has become even more attractive because of the monthly interest payout Fd option. Investing in fixed deposit (FD) opens various avenues for enhancing your savings. Adding to the benefits of a regular fixed deposit, the monthly interest payout option has made earning returns on your FD investments even more lucrative.
FD Interest Rates Offered By Prominent Banks
The following table illustrates the fixed deposit interest rates offered by some prominent banks for tenures ranging between 7 days to 10 years:
| Bank | FD Interest Rates for Regular Public (p.a.) | FD Interest Rates for Senior Citizens (p.a.) |
| State Bank of India | 3.00% to 7.10% | 3.50% to 7.60% |
| ICICI Bank | 3.00% to 7.10% | 3.50% to 7.65% |
| Punjab National Bank | 3.50% to 6.50% | 4.00% to 7.75% |
| IDBI Bank | 3.00% to 6.80% | 3.50% to 7.30% |
| Bandhan Bank | 3.00% to 7.85% | 3.75% to 8.35% |
| IDFC First Bank | 3.00% to 7.50% | 3.50% to 8.00% |
| Bank of Baroda | 3.00% to 7.25% | 3.50% to 7.75% |
| Axis Bank | 3.00% to 7.10% | 3.50% to 7.75% |
| HDFC Bank | 3.00% to 7.20% | 3.50% to 7.70% |
| Kotak Mahindra Bank | 2.75% to 7.25% | 3.25% to 7.75% |
| Yes Bank | 3.25% to 7.50% | 3.75% to 8.00% |
Benefits of Monthly Interest Payout Fd
If you are considering investing your savings in fixed deposits, opting for a monthly interest payout would be a smart move. It is because of the following benefits that this investment option offers you:
Steady Flow of Income
If you are looking for a secure investment option that offers you a steady source of income every month, the monthly interest payout Fd would be the best option. It offers you a consistent monthly income, financial stability, and security, with peace of mind as the risk factor involved is low.
Improved Liquidity
Opting for monthly interest on fixed deposits offers you ample financial liquidity. Unlike conventional FD options, where you receive the entire interest income on the maturity of tenure, the monthly interest FD option brings you interest income every month. It helps you meet emergency expenses and explore profitable investment opportunities without breaking your FD prematurely, which usually attracts a penalty.
Covers Routine Expenses
You may wisely calculate your budget and ascertain your monthly financial expenses. Accordingly, invest in FD with a monthly interest payout option. It will, thus, help you cover your routine expenses, including utility bills and other living expenses, without compromising your savings or disturbing existing investment portfolios.
Passive Income
If you want to complement your current income with a passive income source, the FD with monthly interest would be an apt option. The interest income you earn from such FDs helps you cover your expenses with minimum effort without having to manage any investment portfolios or worry about market fluctuations.
Available for Long-Term Tenures
Many prominent banks offer the monthly interest payout option on FDs for tenure as long as 10 years. It is a substantial period to receive monthly interest income. Thus, investors have a flexible investment option as they secure their financial future, enjoying regular flow of income monthly over extended periods.
Convert Annual Interest Into Monthly Interest
Usually, the fixed deposit rates are available in a per-annum format, so calculating your monthly income may seem confusing. So, to know what your monthly interest payout Fd is, here’s what you must do to make the calculations manually:
For instance, you invest ₹50,000, and your FD annual percentage rate is 10%. What is your monthly interest on FD income?
- Convert your annual interest rate into a decimal form by dividing the annual percentage rate by 100: 10/100 = 0.10
- Further, divide the derived annual rate in decimal form by 12, signifying twelve months in a year: 0.10/12 = 0.0083. It will give you a monthly interest rate in decimal form.
- Calculate your monthly interest by multiplying your investment amount by your monthly interest rate in decimals: ₹50,000 x 0.0083 = 415
- So, your monthly interest payout on FD would be ₹415. Your monthly interest rate is 0.83%, i.e. 0.0083 x100.
Calculate Your Monthly Interest Payout on FD Online
Individuals have different financial goals. Everybody aims to live a comfortable lifestyle without compromising the current standard of living. Thus, to ensure you have the requisite flow of income in future, you must start saving financial resources today and make appropriate investments.
To make things easy, consider your lifestyle and calculate the amount you may require every month. Thus, accordingly, you must have the financial resources ready. Many prominent banks offer you the online FD calculator facility on their portal. You can estimate how much money you must invest today to earn a certain amount as monthly interest payout Fd. Here’s what you must do:
- Navigate to your bank’s official portal, considering the interest rates. You may choose a bank you already have an account with; it requires minimal to no documentation for the formal process.
- After visiting the online bank portal, search for the ‘FD Calculator’ option and click on it.
- Enter all the relevant information. It may include the type of FD, deposit amount, type of customer, FD tenure, etc.
After providing all the relevant details, the FD calculator will show you the potential monthly interest amount. You may edit the deposit amount until you get the required monthly interest amount. Accordingly, you can invest your money today in the monthly interest payout options on FD.