Fixed deposit (FD) is a financial product which you can avail to maximise your savings so that you can meet your future financial needs. One of the ways through which you can better utilise fixed deposit is opting for the monthly interest for a fixed deposit of Rs.10 lakh as you can enjoy higher returns. Investing in this option means you will receive a regular stream of income rather than witnessing long-term money growth which will allow you to meet your immediate financial needs.
Some of the reasons why opting for monthly interest for an FD of Rs.10 lakh can be a feasible option are given below:
Given below is the difference between the rate of interest for fixed deposit for a bank, NBFC, and post office
| Maturity Tenors | Interest Rates (%) | ||
|---|---|---|---|
| Bank | Post Office | NBFC | |
| Between 7 days and 29 days | 2.50 | -- | -- |
| Between 30 and 90 days | 3.00 | -- | -- |
| Between 91 days and 6 months | 3.50 | -- | -- |
| Between 6 months 1 day and 9 months | 4.40 | -- | -- |
| Between 9 months 1 day and 1 year | 4.40 | -- | -- |
| 1 year | 5.00 | 5.5 | -- |
| Between 1 year 1 day and 2 years | 5.00 | 5.5 | 5.51 to 6.22 |
| Between 2 years 1 day and 3 years | 5.20 | 5.5 | 6.22 to 6.60 |
| Between 3 years 1 days and 5 years | 5.45 | 6.7 | 6.60% |
| 5 years | 5.45 | -- | -- |
| Between 5 years 1 day and 10 years | 5.60 | -- | -- |
The source taken to make this comparison table is from HDFC Bank, India Post, and Bajaj Finserv.
Senior citizens will receive an additional interest rate of 0.50% for investing in a bank FD, and 0.25% for investing in an FD scheme offered by an NBFC.
TDS will be applied if annual interest exceeds Rs.40,000.
The interest is compounded on a quarterly basis.
The tenure for a tax saving fixed deposit scheme is five years.
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