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Fixed Deposit Monthly Income

FD Monthly Income Scheme

Last Updated 23rd Sep 2020

  • A monthly income FD is the term deposit where the interest earned is credited directly to the investors account per month.
  • An individual can choose to invest in this plan for a tenure of 1 year to 10 years.
  • It provides the option of premature withdrawal, overdraft facility and loan against FD.
  • Get high-interest rate upto %.
  • Invest in top monthly income FD of banks.
  • Minimum documentation like identity proof and Address proof required for Monthly income FD scheme.

What is a monthly income fixed deposit?

As the name suggests, monthly income fixed deposits are the term deposits where the interest earned is credited directly back to the investors account per month. This type of investment vehicle is an ideal option for individuals who want to earn a regular fixed income on a monthly basis. The monthly income fixed deposits help in creating wealth and fetches higher interest than the savings account.

Interest rates on Monthly Income FD Schemes

Bank Interest Rate Tenure
SBI Fixed Deposit 2.90% - 5.40% 7 Days - 10 Years
HDFC Bank Fixed Deposit 2.50% - 5.50% 7 Days - 10 Years
ICICI Bank Fixed Deposit 2.50% - 5.50% 7 Days - 10 Years
Axis Bank 2.50% - 5.50% 7 Days - 10 Years
ICICI Home Finance 6.00% - 6.50% 12 Months - 120 Months
Kotak Bank 2.75% - 5.25% 7 Days - 10 Years
IDFC First Bank 3.00% - 7.00% 7 Days - 10 Years
Bank of Baroda 2.90% - 5.30% 7 Days - 10 Years
Citibank 2.75% - 3.90% 7 Days - 10 Years
IDBI Bank 3.00% - 5.50% 7 Days - 20 Years
Indian Bank 2.90% - 5.25% 7 Days - 10 Years
Indian Overseas Bank 3.50% - 5.45% 7 Days - 10 Years
OBC 3.00% - 5.30% 7 Days - 10 Years
PNB 3.00% - 5.30% 7 Days - 10 Years
HDFC 6.35% - 6.45% 33 Months - 66 Months

Top banks monthly income FD interest rates for senior citizens

Bank Interest Rate Tenure
SBI Fixed Deposit 3.40% - 6.20% 7 Days - 10 Years
HDFC Bank Fixed Deposit 3.00% - 6.00% 7 Days - 10 Years
ICICI Bank Fixed Deposit 3.00% - 6.00% 7 Days - 10 Years
Axis Bank 2.50% - 6.15% 7 Days - 10 Years
ICICI Home Finance 6.25% - 6.75% 12 Months - 120 Months
Kotak Bank 3.25% - 5.75% 7 Days - 10 Years
IDFC First Bank 3.50% - 7.50% 7 Days - 10 Years
Bank of Baroda 3.40% - 5.80% 7 Days - 10 Years
Citibank 3.25% - 4.40% 7 Days - 10 Years
IDBI Bank 3.50% - 6.10% 7 Days - 20 Years
Indian Bank 3.40% - 5.75% 7 Days - 10 Years
Indian Overseas Bank 4.25% - 6.20% 7 Days - 10 Years
OBC 3.50% - 5.80% 7 Days - 10 Years
PNB 3.50% - 5.80% 7 Days - 10 Years
HDFC 6.60% - 6.70% 33 Months - 66 Months

Benefits of FD Monthly Income Scheme

Some of the top benefits of investing in monthly income option of FD are:

  • Monthly income FD scheme offers flexibility as the banks provide the option of monthly, quarterly or half-yearly income plans.
  • The interest earned on the monthly income fixed deposit is high.
  • The premature withdrawal facility is available.
  • Some banks do not even deduct the TDS on FD interest earned.
  • FD monthly income schemes also provide the overdraft facility on the account linked with them.
  • An individual can choose to invest in this plan for a tenure of 1 year to 10 years.
  • Individuals can also avail loan against this investment.

Monthly Income FD Calculator

Monthly income FD calculator is an online calculator which helps in computing the monthly income earned through a fixed deposit. This is a user-friendly calculator and helps individuals save time in complex calculations. The tool is free of cost thus individuals can use it multiple times and compare returns for different combinations of FD rates, tenure and amount.

Eligibility required for Monthly Income Scheme

Below mentioned can apply for the monthly income FD scheme:

  • Individual
  • Joint account Minor with a parents or guardian
  • Partnership
  • Company
  • Any association or Institute
  • Non Resident individuals

Document required for Monthly Income Scheme

Documents required for opening a monthly income FD scheme are as follows:

  • Application Form
  • PAN card
  • Aadhar card
  • Photograph (2 copies)
  • Identity proof & Address proof as per KYC norms

FAQs

Which bank is best for the monthly interest FD Scheme?

Banks or NBFCs with high returns are considered as the best option for monthly income schemes. SBI, HDFC Bank, PNB Housing Finance and Bajaj Finserv are some of the top banks or NBFCs for monthly interest FD scheme.

Can I get monthly interest on FD?

Yes. an individual can get a monthly interest payout if he chooses periodic payouts, and select the monthly frequency. When one invests in FDs, he gains interest on your principal amount, which can be obtained periodically.

Which scheme is best for monthly income?

There are several schemes that offer monthly income to everyone. However, if you are looking for high return and risk-free option, then the best option for monthly income is fixed deposit where you can earn monthly returns by investing in monthly compounding interest.

How much will I get monthly from FD?

The amount earned will be dependent upon the interest rate on the FD. Let us say, A invested ₹ 1,00,000 in annual income FD which fetches an interest rate of 6%. So, his annual income earned will be ₹ 6,000 which makes the monthly income to be ₹ 500. If he invests in monthly income FD, the annual interest earned will be ₹ 6,168 and monthly income will be ₹ 514 which is higher than the interest earned on annual FD.


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