Explore monthly FD interest payout options for better budgeting!
If a steady stream of income interests you, then monthly payout FDs could be your answer. Instead of receiving a lump sum at maturity, these FDs provide regular interest payments directly deposited into your account every month.
Opting for monthly interest payout provides you with a predictable flow of additional income. However, the extent of its usefulness for financial needs depends on the amount deposited and the FD interest rate offered by banks and NBFCs.
When browsing FDs with monthly payouts, compare the interest rates offered by different issuers. Here an overview of the various payouts you could receive, based on the amount deposited and applicable interest rates.
Deposit Amount |
Interest Rate (p.a.) |
Monthly Interest Payout |
6.25% - 8.30% |
₹5.20 Lakhs - ₹6.91 Lakhs |
|
5.00% - 8.77% |
₹2.08 Lakhs - ₹3.65 Lakhs |
|
6.70% - 9.14% |
₹44,667 - ₹60,933 |
|
6.70% - 9.14% |
₹39,083 - ₹53,317 |
|
6.70% - 9.14% |
₹33,500 - ₹45,700 |
|
6.25% - 9.00% |
₹26,042 - ₹37,500 |
|
6.70% - 9.14% |
₹22,333 - ₹30,467 |
|
6.70% - 9.14% |
₹19,542 - ₹26,658 |
|
6.25% - 9.00% |
₹15,625 - ₹22,500 |
|
6.25% - 8.77% |
₹ 13,021 - ₹18,271 |
|
6.25% - 8.77% |
₹10,417 - ₹14,617 |
|
6.25% - 8.77% |
₹7,813 - ₹10,963 |
|
6.25% - 8.77% |
₹5,208 - ₹7,308 |
|
6.70% - 9.14% |
₹4,467 - ₹6,093 |
|
6.70% - 9.14% |
₹3,350 - ₹4,570 |
|
6.25% - 8.77% |
₹2,604 - ₹3,654 |
|
6.70% - 9.14% |
₹2,333 - ₹3,047 |
|
6.25% - 8.77% |
₹1,563 - ₹2,193 |
|
6.25% - 8.77% |
₹1,042 - ₹1,462 |
|
6.25% - 9.00% |
₹521 - ₹750 |
|
6.25% - 8.77% |
₹52 - ₹73 |
Disclaimer: The aforementioned interest rates are for senior citizens, and the payout figures are indicative. Click on the link to view the interest rates applicable for non-senior citizens.
Frequently Asked Questions
How does a monthly payout FD work?
On booking a non-cumulative FD, you can invest a lump sum for a fixed tenor and opt for monthly FD interest payout.
Is there a minimum investment amount to avail of monthly interest payout on FDs?
Yes. Most banks and NBFCs have a set minimum deposit requirement. You can check the FD issuer’s official website or visit the nearest branch.
Can I choose the tenor for my FD?
Yes. Depending on the FD issuer, you can choose from a range of tenors starting from 7 days, up to 10 years.
Can I withdraw my FD principal amount before maturity?
While some banks and NBFCs permit premature withdrawal, depending on the FD type, it may be subject to penalties.
Are there any taxes applicable on the interest earned in an FD?
Yes. Interest earned from an FD is treated as ‘Income from other sources’ under the Income Tax Act, 1961. The threshold has been set at ₹40,000 for non-senior citizens and ₹50,000 for senior citizens.
Are fixed deposits with monthly interest payouts safe?
The Deposit Insurance and Credit Guarantee Corporation (DICGC) insures FDs issued by banks for up to ₹5 Lakhs per depositor.
Who should consider monthly interest on FDs?
The monthly payout option on FDs should be availed by individuals seeking regular income, retirees, or those needing consistent cash flow.
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