Fixed deposits are known as one of the safest investment options. You park a specific amount of money for a predetermined tenor and interest rate. However, you’ll come across two types of FDs—cumulative and non-cumulative. With cumulative fixed deposits, you get your money with interest at the time of maturity. Non-cumulative fixed deposits, on the other hand, offer monthly FD payouts, as well as quarterly, semi-annually, and yearly payouts.
This article explains the concept of fixed deposits with monthly interest payout.
What is Monthly FD Payout?
A monthly FD payout means that you receive interest on your deposit amount every month. However, you might receive a relatively less interest rate for monthly payouts when compared to other frequencies. People who require a steady flow of income often go for FD monthly payouts.
Let’s understand this with an example: Adhit, a 66-year-old retired man receives a pension every month, but that isn’t enough to pay the bills, stock groceries, and buy medicines for himself and his wife. Hence, he invested his life savings, i.e., ₹35 lakh in a non-cumulative fixed deposit with monthly interest payouts. This provides him with an extra income of ₹19,104 every month.
How to Calculate Fixed Deposit Monthly Interest Payout?
Most banks and NBFCs that offer fixed deposits have an FD calculator on their official website. It enables you to get an estimate of the monthly income you could receive by investing in fixed deposits. So, here’s how you can use the monthly payout FD calculator.
Go to your preferred financial institution’s website
Go to the FD calculator page
Enter the deposit amount
Select the tenor
Choose ‘Non-Cumulative’ under the section ‘Fixed Deposit Type’
Select ‘Monthly’ under the section ‘Interest Payout’
The monthly payout FD calculator will determine the total interest earned by the end of the tenor. You can divide that amount into the number of months in your tenor, i.e. 12, 24, 36, 48, or 60.
Interest Rates Offered by Indian Banks
Let’s check out the FD interest rates offered by top Indian banks.
Financial Institutions |
Regular Rate of Interest |
Senior Citizen Interest Rates |
Minimum Deposit Amount |
Kotak Mahindra Bank |
2.75% - 4.50% |
3.25% - 5% |
₹5000 |
ICICI Bank |
3.25% - 5.75% |
3.75% - 6.25% |
₹10,000 |
City Union Bank |
3% - 5.25% |
3% - 5.25% |
₹100 |
Axis Bank |
3.25% - 5.80% |
3.25% - 6.45% |
₹5000 |
HDFC Bank |
5.75% |
6.25% |
₹100 |
State Bank of India |
2.90% - 5.4% |
3.4% - 6.2% |
₹1000 |
Bajaj Finance Interest Rates for Monthly Payouts
The maximum rate of interest offered by the aforementioned banks ranges from 6.03% to 7.75% for non-senior citizens. However, the interest rates of Bajaj Finance FD start from 6.20%. At Finserv MARKETS, we offer competitive interest rates to ensure your money grows at a substantial rate. Let’s check out the FD monthly payout interest rates offered by us.
Note: Senior citizens enjoy an additional 0.25% interest.
Tenor (in Months) |
Interest Rate for Monthly Payouts |
Minimum Deposit (in Rs.) |
12 - 23 |
6.20% |
₹15,000 |
- What is an FD?
- How do FDs work?
- TDS on FD
- How to calculate FD Interest?
- Floating rate FD
- FD for Women
- Premature withdrawal of FD
- Loan against FD
- Calculate FD Maturity amount
- Monthly Interest on an FD
- Monthly Interest for ₹1 lakh FD in Bank
- Monthly Interest on ₹5 Lakh Fixed Deposit
- Monthly Interest on ₹10 Lakh Fixed Deposit
- Monthly Interest on ₹20 Lakh Fixed Deposit
- Monthly Interest on ₹30 Lakh Fixed Deposit
- Monthly Interest on ₹15 Lakh Fixed Deposit
- Monthly Interest on ₹2 Lakh Fixed Deposit
- Monthly Interest on ₹50 Lakh Fixed Deposit
- Monthly Interest on ₹5 crore
FAQs
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✔️How can I avail interest payouts?
You can avail FD interest payouts monthly, quarterly, semi-yearly, or annually with non-cumulative fixed deposits. However, with a cumulative fixed deposit, you will receive the accumulated money at the time of maturity.
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✔️What is the difference between Bajaj Finance’s cumulative and non-cumulative payout options?
With Bajaj Finance cumulative FD, you will receive a higher rate of interest, whereas, with the non-cumulative FD, the interest rate can be a little low. With non-cumulative, you can get your interest amount on a monthly, quarterly, semi-yearly, or yearly basis. But with cumulative FD, you will receive your earned interest at the time of maturity.
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✔️What payout options are available for an FD?
With a non-cumulative fixed deposit, you can choose between yearly, semi-yearly, quarterly, or monthly FD payout. However, you do not get this option with cumulative FD. It offers the entire amount at the end of your tenor.
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✔️What is the monthly interest for a 1 Lakh FD?
The FD monthly payout for 1 lakh FD with Finserv MARKETS for a 5-years tenor would be ₹545.
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