• 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 2019 (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.

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    Monthly Interest Payout Fixed Deposit Reviews

    • 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? 6
      , kolkata
      Reviewed on Oct 01, 2019
    • Dena Bank
      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? 2
      , new delhi
      Reviewed on Sep 24, 2019
    • Axis Bank Fixed Deposit
      "Interest should be increased for FD"
      0.5 3.0/5 "Satisfactory"
      I have opt for fixed deposit for the tax saving purpose because I have chosen five years tenure with AXIS Bank, still its going on. Only once I Invested my money it has the locking period of five years. I have option to check my transactions through mobile app. But I have concern about the interest rate is very lesser for this FD.
      Was this review helpful? 4
      , hyderabad
      Reviewed on Sep 19, 2019
    • SBI Fixed Deposit
      "FD process should be simpler"
      0.5 1.0/5 "Really Bad"
      I had fixed deposit with SBI then I withdrawn the amount, I done Rs. 3 lakhs of investment on my daughter name then I taken the liquidity to purchase the land, at the time I struggled a lot to take that money because the process was difficult to withdrawn the money after seven months of tenure.
      Was this review helpful? 15
      , madurai
      Reviewed on Sep 03, 2019
    • Union Bank of India Fixed Deposit
      "Not good"
      0.5 3.0/5 "Satisfactory"
      I had a Fixed Deposit with Union Bank of India and its closed 18 to 19 months due to personal reasons. I am doing investment but my experience is not good with FD account. In my home town, there is no other banks so just decided to go with this bank. The returns are good.
      Was this review helpful? 6
      , bangalore
      Reviewed on Aug 28, 2019
    • HDFC Bank Fixed Deposit
      "Good to go with HDFC"
      0.5 5.0/5 "Blown Away!"
      I have one FD with HDFC, I deposited Rs. 1 lakh, I was opt for 45 days of tenure. Finally I got 6.25% of interest for 45 days. It won't cover the tax, if we need tax benefits we should go for five years term. I can track the details through netbanking, on the maturity date the amount credits automatically in the account. Even the notification can customized.
      Was this review helpful? 7
      , bangalore
      Reviewed on Aug 27, 2019
    • HSBC Bank Fixed Deposit
      "wrong calculation of interest rates"
      0.5 0.5/5 "Unacceptable"
      HSBC staff wrongly pre closed my fixed deposit .. and calculated the interest rates wrongly and when asked them for clarification never got back .. even after following up with them repeatedly for more than 3 months.. would highly recommend not using their services.
      Was this review helpful? 4
      , visakhapatnam
      Reviewed on Aug 24, 2019
    • SBI Fixed Deposit
      "Excellent"
      0.5 5.0/5 "Blown Away!"
      I do have a Fixed deposit account with SBI and it was carried out by Mom and even I have account for my daughter. Its still running and they have Google application separately to access online. The returns are good. I am doing monthly investment and it was opened quite a long may be 4 years.
      Was this review helpful? 9
      , ahmedabad
      Reviewed on Aug 23, 2019
    • ICICI Bank Fixed Deposit
      "Good"
      0.5 5.0/5 "Blown Away!"
      I just opened a Fixed Deposit with ICICI BANK and have not done any survey on this. I am account holder with them so it was easy to do FD account even they are providing 7% interest rate. The process is very user friendly and never faced any hassle. I could access this account via online.
      Was this review helpful? 6
      , new delhi
      Reviewed on Aug 21, 2019
    • Post Office Fixed Deposit
      "Good for future"
      0.5 3.0/5 "Satisfactory"
      In post office rate of interest is higher for the fixed deposit when compared to the bank, I invested Rs. 5000 on monthly basis its comes in a year Rs. 60,000 after 5 years I got Rs. 3.75,000 I got Rs. 75,000 extra. The service is not comfortable if we have any relative who working there it would supportive or else difficult.
      Was this review helpful? 14
      , burdwan
      Reviewed on Aug 09, 2019
    • SBI Fixed Deposit
      "Good for future saving"
      0.5 5.0/5 "Blown Away!"
      I have FD with SBI, I have opt for one year term there is no such limitation for depositing the money. The interest rate is good for the FD, the online banking is convenient to take liquidity. They resolve the queries on time. Its most safe and secured.
      Was this review helpful? 4
      , visakhapatnam
      Reviewed on Aug 08, 2019
    • SBI Fixed Deposit
      "Average"
      0.5 4.0/5 "Great!"
      I have selected state bnak of indis fixed deposit amount 1 lakhs , Tenure 5 years and Rate of interest 8 percentage after renewal fixed deposit 6 percentage is very less .while document directly bank . Customer service is not good and responsive.
      Was this review helpful? 7
      , kochi
      Reviewed on Aug 05, 2019
    • Kotak Fixed Deposit
      "Excellent Banking"
      0.5 5.0/5 "Blown Away!"
      I activated FD account with Kotak, I have been maintaining this account since when I opened saving account, I converted Rs. 5000 for one year. They are providing interest around 7.6% per annum, the online netbanking and mobile app is very convenient for deposit to FD.
      Was this review helpful? 5
      , mumbai
      Reviewed on Aug 03, 2019
    • ICICI Bank Fixed Deposit
      "Good"
      0.5 4.0/5 "Great!"
      I have invested my FD with ICICI BANK and also have a 3in1 account with them. The interest rate is pretty good. Recently started before 6months, I can do premature withdrawal and also have selected a locking period of 3 years. The customer service is good and overall am satisfied with this bank.
      Was this review helpful? 4
      , mumbai
      Reviewed on Aug 01, 2019
    • Post Office Fixed Deposit
      "Safe and Secured"
      0.5 4.0/5 "Great!"
      My Post office branch is located in own campus hence there is no queue. I opened the fixed deposit, I made one time investment for five years its has tax exemption. They are providing 7% of interest for per annum. I believe it has online access as well.
      Was this review helpful? 12
      , bangalore
      Reviewed on Aug 01, 2019
    • SBI Fixed Deposit
      "Too much good scheme"
      0.5 5.0/5 "Blown Away!"
      Chosen my fixed deposit from State bank of India. I have invested the money of Rs. 57000 and SBI is a most popular bank all over the India and offering all the facilities compared to bank. Since i have a salary account with them, its easy to transfer the money. They are providing the interest rate of 6.5%.
      Was this review helpful? 7
      , kolkata
      Reviewed on Jul 31, 2019
    • Union Bank of India Fixed Deposit
      "Good Investment"
      0.5 4.0/5 "Great!"
      Union of India fixed deposit is same as other investment. Being an existing customer I have opt for one year of fd, the online banking feature is good to open and closing the account, they was no charges for the liquidity of fund before the maturity.
      Was this review helpful? 2
      , mumbai
      Reviewed on Jul 29, 2019
    • SBI Fixed Deposit
      "Good investment plan"
      0.5 4.0/5 "Great!"
      Chosen my fixed deposit from state bank of India because the given rate of interest is high. They are not deducting any service charges. I have invested the money of Rs. 1 lakhs and there is no lockin period and i have chosen the plan for 1 year and they are giving a interest rate of 6.75%.
      Was this review helpful? 10
      , bangalore
      Reviewed on Jul 25, 2019
    • HDFC Bank Fixed Deposit
      "GOOD"
      0.5 5.0/5 "Blown Away!"
      I am using the savings account with HDFC BANK since from last 5 years, the reason for taking the fixed deposit was they are giving good rate of interest. The application is easy to use with the bank and to check the status of the account.
      Was this review helpful? 9
      , hyderabad
      Reviewed on Jul 20, 2019
    • ICICI Bank Fixed Deposit
      "Good investment for future"
      0.5 4.0/5 "Great!"
      I opened fixed deposit with ICICI it gives tax benefits upto 80 c section, I invest Rs. 50,000 as a one time investment it has the term of five years. The online banking is good to deposit the money to take the liquidity, I have option to track the FD details also netbanking.
      Was this review helpful? 8
      , bangalore
      Reviewed on Jul 19, 2019
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