• Monthly Interest Payout Fixed Deposit

    A Fixed Deposit is an investment which offers higher rates of interests as opposed to a regular savings account. The account holder is required to park a significant amount of money in a financial institution for a predetermined tenor. The tenor typically ranges from 1 month to 5 years. The deposit will be held by a fixed interest rate that can be either received by the account holder in regular intervals i.e. fortnightly, monthly, quarterly or yearly basis or upon maturity. For instance, an account holder who has opted for a monthly interest payout, will receive a Fixed Deposit monthly income. FD schemes are offered by institutions like banks, Non-Banking Financial Companies, building societies or credit unions.

    Fixed Deposit Scenario in the Indian market

    The risk-averse nature of the Fixed Deposit scheme combined with an assurance of high returns makes it a common investment choice in India. The rates of interest typically range from 4%-8% and are priced differently by each financial institution based on the tenor. The lower limit of deposit that can be parked is usually Rs.1,000, while the upper limit varies with each institution.

    Interest Rates on FD Offered by Indian Banks:

    The following enlists the interest rates per annum of FD in 2020 (for deposits below Rs.1 crore) offered by a few popular banks in the Indian economy:

    Name of the bank Regular Interest Rates Senior Citizen Interest Rates Minimum Limit for Deposit
    Ratnakar Bank 7.50 8.00 Rs.100
    Kotak Mahindra Bank 7.25 7.75 Rs.10,000
    ICICI Bank 7.00 7.50 Rs.1,000
    City Union Bank 7.10 7.35 Rs.100
    Axis Bank 7.10 7.60 Rs.5,000
    YES Bank 7.10 7.60 Rs.10,000
    HDFC Bank 7.25 7.75 Rs.5,000
    State Bank of India 6.85 7.35 Rs.1,000

    The interest rates mentioned in the table are applicable only to the specific tenor dictated by the banks. In the current market, Ratnakar Bank offers the highest interest rate of 7.50% and 8.00% for the general public and senior citizens respectively. The tenor corresponding to this rate is between 24 months and 60 months. The general trend reads that a longer tenor provides a higher interest rate. However, it must be noted that the longest tenors do not guarantee the highest rates. It is recommended to compare the competitive interest rates along with the preferred tenor before choosing a plan. Most of the FD schemes offer a higher interest rate i.e. 0.25%-0.50% than the regular rates to senior citizens.

    How to Calculate Fixed Deposit Monthly Interest Payout?

    A majority of the banks that offer Fixed Deposits have an online portal which enables a potential investor to calculate an estimate of the monthly interest payout that they could obtain.

    The following steps could be followed to use the FD monthly payout calculator:

    • Visit the online site of the bank where you wish to open a Fixed Deposit account.
    • Click on the Fixed Deposit option from the services enlisted.
    • If the page does not already contain the FD calculator, click on the option that leads you to the calculator.
    • Enter the size of the deposit to be made.
    • Select the desired tenor.
    • Choose the interest payout frequency option as ‘Monthly’.
    • The calculator would then formulate an estimate of the monthly interest payout corresponding to the bank’s interest rates.

    Fixed Deposit as an Investment Option

    Fixed Deposit is a popular mode of investment among the general public in India.

    The following describes a few features that make FD a profitable investment:

    • Unlike the share market, the returns of Fixed Deposits are resistant to the market fluctuations. This makes FDs a safe option for investment.
    • An investor gets an estimate of the size of the returns that they would receive upon maturity hence, enabling them to plan their finances across the full tenor of the FD.
    • Cumulative FDs are term deposit schemes which accumulate your total interest income to the returns upon maturity. Investors can opt to receive a large sum of money in a single instalment. Investors who would benefit from an amassed surplus in one go could select this scheme.
    • Non-Cumulative FDs on the other hand ensure periodic interest payouts to the investors. Individuals who seek out regular intake of cash in addition to their income, could opt for this plan.
    • The rollover feature in select FD schemes enable the account holder to reinvest the returns for a new term deposit. This ensures continued growth in savings.
    • According to the RBI guidelines, FDs up to Rs.1 lakh are insured under the Deposit Insurance and Credit Guarantee Scheme of India.

    What Happens in case of Premature Withdrawal?

    Most of the banks and other financial institutions attach penalty charges on premature withdrawals from Fixed Deposit accounts. There are two variants of FDs viz. FD with an option of premature withdrawal and FD without an option of premature withdrawal. Some banks permit partial withdrawals but not complete withdrawal of the funds before the date of maturity.

    For Fixed Deposits with premature withdrawal facility, banks usually obey the following formula:

    Rate of interest for premature withdrawal = Rate of interest at the time of investment – 1%

    This formula is generally applicable for FDs with sweep-in facility, as well FDs with a periodic interest payout frequency. Hence, preclosure or premature withdrawal could lead to loss in interest income. It is recommended that investors carefully analyse the tenor best suited to their needs while choosing a plan, to avoid premature withdrawals.

    How to Convert Annual Interest Rate to Monthly Interest Rate?

    These steps can be followed to convert annual interest rate into monthly interest rate:

    • The annual rate needs to be converted from percentage to decimal format (divide the rate by 100)
    • Divide the annual rate (the decimal form) by 12
    • Multiply the annual rate with the interest amount to obtain the monthly rate
    • Convert the monthly rate into percentage by multiplying it with 100

    Steps to Break or Close an FD Before Maturity

    Fixed Deposit schemes with a premature withdrawal facility can be closed before the date of maturity. Most banks charge a penalty for preclosure of an FD account. An account holder can visit the respective bank and file an application to close the FD. The bank would then process their request and attach the prescribed charges to the account. This would then be followed by transferring the returns to the account holder and returning any documents that were submitted while opening the account. Many banks also offer an online service to close an FD account.

    The following steps could be followed to close or break an FD account online:

    • Visit the website of the respective bank.
    • Enter your credentials such as the username and the password.
    • Click on the ‘Fixed Deposits’ option from the list of services mentioned on the site.
    • Select the ‘Close account’ option.
    • From the list of FDs, select the account that you would like to close.
    • Cooperate with any verification processes that might be requested to confirm your identity.
    • A confirmation message might be sent to your registered mobile number and email address. Proceed to confirm these.
    • After deducting the penalty charges, the returns would then be transferred to your savings account.
    • Check the updated amount on your account to confirm the receipt of the amount.

    Display of any trademarks, tradenames, logos and other subject matters of intellectual property belong to their respective intellectual property owners. Display of such IP along with the related product information does not imply BankBazaar's partnership with the owner of the Intellectual Property or issuer/manufacturer of such products.

    Monthly Interest Payout Fixed Deposit Reviews

    • SBI Fixed Deposit
      "Good in FD service"
      0.5 5.0/5 "Blown Away!"
      I am having a savings account with State Bank of India hence i have selected the Fixed deposit investment scheme with them. They are providing the interest rate of 8%. I have invested the money 2 years back and there is a lockin period of 72 months.
      Was this review helpful? 31
      , visakhapatnam
      Reviewed on Mar 02, 2020
    • Kotak
      Kotak Fixed Deposit
      "Safe and secure"
      0.5 4.0/5 "Great!"
      Kotak Mahindra bank is a reliable bank and good management thats the reason i have invested the fixed deposit scheme in this bank. They have provided me a interest rate of 7% and i have kept for the period of 1 year and 1 month. Overall, I'm satisfied with their services.
      Was this review helpful? 5
      , ahmedabad
      Reviewed on Mar 01, 2020
    • HDFC Bank Fixed Deposit
      "Safe and Secure"
      0.5 5.0/5 "Blown Away!"
      I have purchased HDFC Fixed deposit which I am renewing for every 13 months. They have given me an interest rate of 7% and There is no processing fee and there is no locking period as well. If I'm withdrawing FD amount before locking period, they are charging some amount.
      Was this review helpful? 15
      , ahmedabad
      Reviewed on Mar 01, 2020
    • Punjab National Bank Fixed Deposit
      "PNB Fixed Scheme is good"
      0.5 5.0/5 "Blown Away!"
      I went to the nearby branch for the Punjab National Bank for taking my fixed deposit as per my family members recommendation. I have invested the money of Rs. 50000 there was a lockin duration of 6 years when i withdraw the money, i got the money of Rs.1 lakhs. They have offered me a interest rate of 7%.
      Was this review helpful? 10
      , jamshedpur
      Reviewed on Feb 27, 2020
    • Post Office Fixed Deposit
      "Good Service"
      0.5 5.0/5 "Blown Away!"
      I was having my savings account from Post office hence i have invested my money into Post office Fixed deposit scheme. I have invested the money of Rs. 25000. There is a lockin period of 10 years. I have invested the money in the year of 2011. Post office service is proper. Overall, I'm happy about the services.
      Was this review helpful? 37
      , chennai
      Reviewed on Feb 25, 2020
    • HDFC Bank Fixed Deposit
      "FD is not good with HDFC"
      0.5 4.0/5 "Great!"
      I have invested some money as a Fixed deposit in HDFC Bank and the interest rate is not that much great because they are giving interest as compared to others. I have invested the money of Rs. 3L and there is a locking period of 5 years. Its 7% interest rate. If they are increasing the interest rate, it would be fine. Since I do all my transactions with this bank, I have selected same for my FD as well.
      Was this review helpful? 14
      , bangalore
      Reviewed on Jan 31, 2020
    • SBI Fixed Deposit
      "Good support"
      0.5 5.0/5 "Blown Away!"
      I have chosen my fixed deposit scheme from State bank of India because I'm maintaining my salary account with them and they provided rate of interest is fine for me. I have invested the money of Rs. 2.75 lakhs. There is a locking period of 45 days. They are giving interest rate of 4.5%. Overall, I'm satisfied with their services.
      Was this review helpful? 22
      , namakkal
      Reviewed on Jan 18, 2020
    • Kotak Fixed Deposit
      "Good App"
      0.5 5.0/5 "Blown Away!"
      I have been investing the money of Rs. 3 lakhs for the fixed deposit. I have selected Kotak mahindra bank for the FD because their net banking facility is very different when i compared to other. I can access everything regarding the account hence its easy to handle the transactions. I'm not sure about the interest rates. 7 months before, i have invested the money.
      Was this review helpful? 11
      , bangalore
      Reviewed on Jan 08, 2020
    • Kotak Fixed Deposit
      "Excellent Services"
      0.5 5.0/5 "Blown Away!"
      Its because of the competitive interest rates, i have selected the Fixed deposit in Kotak Mahindra bank. I have invested the fixed deposit 1.5 years ago and there is a lockin period of 5 years. They have invested the amount of Rs. 7.5 % and the employees are helpful in the branch.
      Was this review helpful? 8
      , mumbai
      Reviewed on Jan 08, 2020
    • Axis Bank Fixed Deposit
      "Good Savings scheme"
      0.5 4.0/5 "Great!"
      I have a Fixed deposit in Axis bank. I have invested the money of Rs. 10000 for two FDs. There is a lockin duration of 1 year. They are giving a interest rate of 7%. Through net banking, i have activated this Fixed deposit. There is no tax benefits available. Axis bank service has been good. Overall, I'm happy about their services.
      Was this review helpful? 8
      , kolkata
      Reviewed on Dec 31, 2019
    • Oriental Bank of Commerce Fixed Deposit
      "Good Scheme"
      0.5 5.0/5 "Blown Away!"
      Since last 15 years, i have a account with Oriental bank of commerce thats the reason i have invested the money in fixed deposit with the same bank. I have invested the amount of Rs. 11 lakhs. They are giving the interest rate of 6.5%. There is no locking period but i have chosen the duration of 1.5 years. There is no additional charges deducted for this fixed deposit.
      Was this review helpful? 17
      , bulandshahr
      Reviewed on Dec 03, 2019
    • Post Office Fixed Deposit
      "Good Service"
      0.5 4.0/5 "Great!"
      Interest rate is very low in Indian post office Fixed deposit scheme because they are providing only 8.5%. I have chosen this office because of the child benefits. I have invested the money of Rs. 1.5 years. Its 3 years lock in period. Overall, I'm satisfied with the service provided by post office employees.
      Was this review helpful? 60
      , parvathipuram
      Reviewed on Dec 03, 2019
    • SBI Fixed Deposit
      "Good bank for Fixed Deposit"
      0.5 4.0/5 "Great!"
      I have invested the money in SBI for a fixed deposit and based on my wife recommendation i have chosen it. They are providing the interest rate of 7.25%. They have option to select the lock in period in that i have chosen 5 years. We had visited their branch and the response was good.
      Was this review helpful? 34
      , mumbai
      Reviewed on Nov 12, 2019
    • HDFC Bank Fixed Deposit
      "Good one"
      0.5 4.0/5 "Great!"
      Its easy accessible and to redeem so that i have invested the money in Fixed Deposit with HDFC BANK. I have invested the money of Rs. 2.5 lakhs and they have provided me a interest rate of 7.5%. There is no locking period. I didn't got any additional charges till now.
      Was this review helpful? 20
      , hyderabad
      Reviewed on Nov 12, 2019
    • Post Office Fixed Deposit
      "Safety deposit"
      0.5 5.0/5 "Blown Away!"
      I have paid the money of Rs. 4.5 lakhs as a fixed deposit in the Indian post office. For the safety purpose, i have chosen the post office account. They are offering me a interest rate of 7.9%. There is a lockin period of 5 years. If i withdraw the money in 1 year, they will reduce the interest rate of 2% and after 3 years, its 1%.
      Was this review helpful? 112
      , jaipur
      Reviewed on Nov 08, 2019
    • Central Bank of India Fixed Deposit
      "Good Bank"
      0.5 4.0/5 "Great!"
      Interest rates are less in Central Bank of India so I had taken a fixed deposit. I have invested the money of Rs. 1 lakh in my wife's name. Branch is near from my place so I have chosen this bank. Yearly once, I get the money of Rs. 6,765 for the interest. There is a locking period of 1 year.
      Was this review helpful? 14
      , tirupur
      Reviewed on Nov 06, 2019
    • ICICI Bank Fixed Deposit
      "Customer centrice & User friendly app"
      0.5 4.0/5 "Great!"
      I am doing Fixed Deposit with ICICI BANK and its been around 5years. They haven't been paying good interest and its more or less same like other banks as I used to hold my salary account with ICICI, I have decided to be with one bank. There is no locking period and its flexible. They do give good support and the app is user friendly. Even deposit account can be opened through i-mobile or net banking itself.
      Was this review helpful? 20
      , nasik
      Reviewed on Oct 15, 2019
    • SBI Fixed Deposit
      "Good"
      0.5 3.0/5 "Satisfactory"
      I had a Fixed Deposit in State Bank of India, I have completed the tenure before 3months ago. I have no issues with the customer service. They are given me 7% interest rate for 2years. There is no profit and processing fee. I got an online access, where I can check the interest rate anytime on the YONO app or else SBI online.
      Was this review helpful? 31
      , tirupati
      Reviewed on Oct 15, 2019
    • SBI Fixed Deposit
      "Interest charges are good. "
      0.5 3.0/5 "Satisfactory"
      I have invested some money through FD. My salary account is in SBI so i have a zero ATM charges and the limit is not actually set by SBI. They do have short term FDs which is pretty good. I have invested the money of Rs. 60000 and the interest rate is 10.01% for the tenure period of 16 months. There is no lockin period. There is no hassle to getting the money back.
      Was this review helpful? 42
      , kolkata
      Reviewed on Oct 01, 2019
    • Dena Bank Fixed Deposit
      "Good plan for senior citizen"
      0.5 2.0/5 "Expected more"
      I have invested the money in Dena bank through Fixed deposit and the growth is not that much good. They are not taking any hidden charges. Only because of the Government undertaken bank, i have selected them. They are providing a interest rate of 6% per annum. I have invested the money of Rs. 2 lakhs. There is a lockin period of 1 year.
      Was this review helpful? 17
      , new delhi
      Reviewed on Sep 24, 2019
    Common Loader Icon
    reTH65gcmBgCJ7k
    This Page is BLOCKED as it is using Iframes.