• Monthly Income FD Schemes

    Fixed Deposit (FD) monthly income schemes are an ideal option for those who want to earn a regular fixed income on a monthly basis. There are many monthly income schemes offered by banks and this will help the investor earn a supplementary income. This type of term deposit promises the investor guaranteed returns at a certain rate of interest, every month. This type of investment is a good option, especially for pensioners, who are looking to augment their income in some way.

    Interest Rates on Monthly Income FD Schemes

    The interest rates for different bank’s monthly income FD schemes are given below:

    Bank Tenure Interest Rates
    SBI Bank FD 7 days to 10 years 2.90% to 5.40%
    HDFC Bank FD 7 days to 10 years 2.50% to 5.50%
    Kotak Bank FD 7 days to 10 years 2.50% to 5.30%
    Axis Bank FD 7 days to 10 years 2.50% to 5.75%
    Bank of Baroda FD 7 days to 10 years 2.80% to 5.25%
    IDFC First Bank FD 7 days to 10 years 2.75% to 5.75%
    IDBI Bank FD 7 days to 20 years 2.70% to 5.40%
    Punjab National Bank FD 7 days to 10 years 2.90% to 5.25%

    *The interest rates can change as per banks rules and regulations.

    Monthly Income Scheme Interest Rates for Senior Citizens

    Bank Tenure Interest Rates
    SBI Bank 7 days to 10 years 3.40% to 6.20%
    HDFC Bank 7 days to 10 years 3.00% to 6.25%
    Kotak Bank 7 days to 10 years 3.00% to 5.80%
    Axis Bank 7 days to 10 years 2.50% to 6.25%
    Bank of Baroda 7 days to 10 years 3.30% to 5.75%
    IDFC First Bank 7 days to 10 years 3.25% to 6.25%
    IDBI Bank 7 days to 20 years 3.20% to 5.75%
    Punjab National Bank 7 days to 10 years 3.40% to 5.75%

    *The interest rates can change as per banks rules and regulations.

    Key Benefits and Features of Monthly Income FD Scheme

    The various key benefits and features of monthly income FD schemes are mentioned below:

    • This scheme is adaptable, with no upper limit on the amount of money that can be invested. It allows people to invest in the scheme according to their financial capabilities and needs.
    • When compared to most other schemes, a monthly income scheme is more liquid. Investors can opt to withdraw their cash at anytime to meet any unforseen emergency because this scheme has no lock-in period.
    • With the monthly income scheme, investors are not required to pay any processing fee to open an account. It also has a low exit-load of less than 1% of the total investment.
    • Monthly income scheme earnings are higher than typical fixed deposits and the post office monthly income scheme.
    • Investors are guaranted a monthly return despite the fact that the amount of the payment varies based on the financial market.
    • Monthly income schemes are managed by professional fund managers who have a superior understanding of how the investing market works. They keep track of the schemes and also make all of the decisions about when and how much to convert funds between debt and equity.

    Rate of Interest on Monthly Income Scheme

    The interest rates on these accounts tend to follow the same rates as those prescribed for the regular term deposits. They also tend to offer senior citizens a higher interest rate which can be anything from 0.25% to 0.5% over the applicable rates. These rates are decided by the banks so it’s best to confirm the exact rate with the banks before investing. With some banks, current and past employees of that banks also get higher interest rates.

    If you are using a regular fixed deposit and withdrawing the interest every month to augment your income, you should know that sometimes banks will provide discounted interest rates.

    Eligibility Criteria

    The eligibiity criteria for opening a monthly income scheme is same as every other fixed deposit scheme. To open a monthly income scheme, you have to be:

    • An individual over the age of 18
    • Minors with their guardians can open a joint account
    • Company
    • Hindu United Family (HUF)
    • Any association or institute
    • NRIs

    Documents Required

    The documents that are needed to open a monthly income fixed deposit account are:

    • Application form
    • Depositor’s photograph (2 copies)
    • Identity proof
    • Address proof
    • PAN card
    • Aadhar card

    Monthly Income Scheme FD Calculator

    A monthly income fixed deposit calculator is used to calculate the monthly interest that will be earned out of an FD. To put it in simple words, an FD interest calculator can be used to determine how much interest will be payable at the end of each month on your term deposit. The BankBazaar FD interest calculator is an easy-to-use tool that can be used to calculate the interest earned on an investment.

    Post Office Monthly Income Scheme

    The Indian post office also offers a monthly income scheme. This post office monthly income scheme currently offers an annual interest rate of 6.6%. Investors can also register for a joint account in the scheme to take advantage of the scheme’s full benefit. The scheme allows investors to invest in multiples of Rs.100 or Rs.1000. This scheme reuires a minimum investent of Rs.1000, with a maximum investment of Rs.9 lakh.

    FAQs on Monthly Income FD Schemes

    1. Will I get monthly interest with monthly income FD scheme?

      Yes, you can get monthly interest with monthly income FD scheme.

    2. What is the interest rate of the SBI Monthly Income Scheme Fixed Deposit?

      The SBI monthly income scheme fixed deposit has an interest rate ranging from 2.90% to 5.10%.

    3. Is there any monthly income scheme in LIC?

      LIC offers a onthly income scheme to senior citizens which has an interest rate of 7.40%.

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