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  • Fixed Deposit BYTES FROM OUR KITCHEN

    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 rates are good compared to others"
      0.5 3.0/5 "Satisfactory"
      No reason for choosing my fixed deposit account with state bank of India. They are providing a interest rate of 6.75%. I have invested the amount of Rs. 50000. There is a lockin period of 2 years. I can deposit for a long time as well. There is processing fee for my FD account.
      Was this review helpful? 0
      , kolkata
      Reviewed on Jun 24, 2019
    • Standard Chartered Bank
      Standard Chartered Bank Fixed Deposit
      "Recommendable Product"
      0.5 5.0/5 "Blown Away!"
      For the fixed deposit, Standard Chartered is providing flexible duration based on that interest may get vary. I would say its very attractive than other banks. Minimum we can invest from Rs. 10,000, the online transaction is very convenient as well.
      Was this review helpful? 0
      , noida
      Reviewed on Jun 24, 2019
    • Standard Chartered Bank Fixed Deposit
      "Recommendable Product"
      0.5 5.0/5 "Blown Away!"
      For the fixed deposit, Standard Chartered is providing flexible duration based on that interest may get vary. I would say its very attractive than other banks. Minimum we can invest from Rs. 10,000, the online transaction is very convenient as well.
      Was this review helpful? 0
      , noida
      Reviewed on Jun 24, 2019
    • Kotak Fixed Deposit
      "Good Experience"
      0.5 5.0/5 "Blown Away!"
      I activated fixed deposit through Kotak Mahindra online banking, minimum we can invest from Rs. 10,000 for the duration of one year. The interest rate is good than other bank, there is no charges for per mature liquidity. The closure procedure is very easily I can also deactivate the FD service through online.
      Was this review helpful? 1
      , chandigarh
      Reviewed on Jun 21, 2019
    • Karur Vysya Bank Fixed Deposit
      "Service is good"
      0.5 5.0/5 "Blown Away!"
      Rate of interest is little bit high compared to other bank hence i have chosen the Karur Vysya bank for my fixed deposit. I have invested the amount of Rs. 5 lakhs. They have given me a monthly interest rate of Rs. 4400. I have got a proper response from the bank. On the maturity date, i have submit the bond and get the cash.
      Was this review helpful? 1
      , chennai
      Reviewed on Jun 16, 2019
    • Indian Bank Fixed Deposit
      "Service is good"
      0.5 5.0/5 "Blown Away!"
      I have chosen the Indian bank because of its a Government undertaken bank. I have invested the amount of Rs. 5 lakhs. They have given me a interest rate of 4100 monthly basis. They won't charge for anything extra. I visited their branch and put the money and the employee response. I'm happy about the returns because i got the interest on monthly basis.
      Was this review helpful? 0
      , chennai
      Reviewed on Jun 16, 2019
    • SBI Fixed Deposit
      "Safe and secured"
      0.5 5.0/5 "Blown Away!"
      Being a middle class person definitely I think to invest my money that's the reason I chosen SBI fixed deposit because its safe and secured. I can deposit for long term, the online feature is great and I can open and close the FD account through netbanking.
      Was this review helpful? 5
      , kolkata
      Reviewed on Jun 13, 2019
    • ICICI Bank Fixed Deposit
      "Excellent"
      0.5 5.0/5 "Blown Away!"
      I did a Fixed deposit in ICICI BANK for my kids because I got my salary account and also have opened separate account for my kids and wife on the same bank so its easy to do the payment and linked together. The interest rate is 6.75% moreover the options are very flexible, the locking period is like 1month , 3 months, one year,etc and even the online services are enabled. Whenever I have good amount on the account so go for FD on the selected month, the interest amount will be credited into account.
      Was this review helpful? 1
      , hyderabad
      Reviewed on Jun 11, 2019
    • Oriental Bank of Commerce Fixed Deposit
      "Good Service"
      0.5 5.0/5 "Blown Away!"
      I have Oriental bank Of Commerce Fixed deposit account ,I have not faced any difficulties so far on using this account .Customer service is also good so far .Each and every transaction will be safe and secure .There was no drawbacks faced so far .I am very much comfortable and easy going and completely satisfied with the service.
      Was this review helpful? 1
      , hyderabad
      Reviewed on Jun 06, 2019
    • Axis Bank Fixed Deposit
      "Good Service"
      0.5 5.0/5 "Blown Away!"
      I have a Fixed deposit account with Axis Bank. I have not faced any difficulties so far on using this account. The customer service is also good so far. Each and every transaction will be safe and secure .There was no drawbacks faced so far. I am very much comfortable in using this account.
      Was this review helpful? 3
      , hyderabad
      Reviewed on Jun 06, 2019
    • HDFC Bank Fixed Deposit
      "Good"
      0.5 4.0/5 "Great!"
      I done a Fixed Deposit account with HDFC BANK before 2 years and the rate of interest was good. I have withdrawn the money and its neither loss or nor profit. My money is safer and return is very low. There was no locking period and the executive is supportive.
      Was this review helpful? 1
      , mumbai
      Reviewed on May 30, 2019
    • HDFC Bank Fixed Deposit
      "Its Good"
      0.5 5.0/5 "Blown Away!"
      I had fixed deposit in HDFC for the amount of Rs.10,000 then I withdrawn in two months I got some interest. I went to the bank for account opening within few minutes they helped to open the account. There is no charges for pre matured liquidity fund.
      Was this review helpful? 2
      , hyderabad
      Reviewed on May 25, 2019
    • HDFC Bank Fixed Deposit
      "Good Returns from HDFC"
      0.5 4.0/5 "Great!"
      As per the guidance , I taken a Fixed Deposit in HDFC . This is one year plan and worth enough to take this plan in HDFC comparing with the interest rate . I am really happy with the better returns for my FD . I thought of continuing after one year also .
      Was this review helpful? 1
      , hyderabad
      Reviewed on May 13, 2019
    • HDFC Bank Fixed Deposit
      "Good Service"
      0.5 5.0/5 "Blown Away!"
      I am using HDFC Bank Fixed Deposit for the past 6 years ,using net banking is also good ,customer service is good .flexy deposit ,whenever required can take the amount and can deposit it later .There was no issues faced so far .The Banking service is good to me so far.I am satisifed with the banking service.
      Was this review helpful? 3
      , chennai
      Reviewed on May 13, 2019
    • Oriental Bank of Commerce Fixed Deposit
      "Trusted investment for the future"
      0.5 5.0/5 "Blown Away!"
      I have fixed deposit with Oriental Bank of commerce, they give interest rate around 7.5%when I was invested but I am not sure about current one. However there is no charges applicable for the fd maintenance, They have nice online banking to open or close the account and its a trusted one.
      Was this review helpful? 0
      , bangalore
      Reviewed on May 13, 2019
    • ICICI Bank Fixed Deposit
      "Have to be more quick in their procedure"
      0.5 3.0/5 "Satisfactory"
      I have Fixed Deposit with ICICI also which was matured earlier even it was a tax free accounts they are charging some amount. Before the financial year completion, i need to submit the document to income department to get my fund but the procedure is too long and I did not get the money. I had done investment of 1L and 0.50L which am unhappy. I would suggest them to provide the bills on time after this experience have stopped investing with them.
      Was this review helpful? 3
      , hyderabad
      Reviewed on May 12, 2019
    • HDFC Bank Fixed Deposit
      "Very much convenient"
      0.5 5.0/5 "Blown Away!"
      My all time favorite is Fixed Deposit which is secured and I can count the returns on evey month which am most comfortable. My family all have them are having in HDFC account, the manager is very friendly and rendering the service. Am doing investment since 2011 and their services are more good than the profit.
      Was this review helpful? 1
      , hyderabad
      Reviewed on May 12, 2019
    • Axis Bank Fixed Deposit
      "Convenient fixed deposit"
      0.5 4.0/5 "Great!"
      My fixed deposit was opened with Axis bank, I invested around Rs. 1 lakh for one year. If I want I can also extend the tenure. I believe the rate of interest is more than 7% for per annum. I can also track the fixed deposit through online banking its more simple.
      Was this review helpful? 6
      , thane
      Reviewed on May 04, 2019
    • HDFC Bank Fixed Deposit
      "Userfriendly FD experience"
      0.5 4.0/5 "Great!"
      I do have fixed deposit with HDFC, I opened it through online there is no locking period, while opening I have specified the maturity date. Minimum deposit start from Rs. 5000, they are providing 7.3% per annum. Its safe and secured to invest money with HDFC.
      Was this review helpful? 3
      , bangalore
      Reviewed on May 03, 2019
    • SBI Fixed Deposit
      "Good Service"
      0.5 5.0/5 "Blown Away!"
      I am having fixed deposit with State Bank Of India ,interest is good .The banking service is good so far .I have not faced any issues so far .Money will be safe on this account .Whenever need money can take and can deposit as well .The banking service is good and satisfied so far .Will get frequent update as well. I am satisfied with the overall service.
      Was this review helpful? 13
      , faridabad
      Reviewed on Apr 30, 2019
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