A monthly payout scheme is ideal for depositors who want to opt for a fixed monthly income. This type of FD scheme is part of the non-cumulative FD option and is highly popular among the retired segment or people who have large surplus from inheritance or other sources lying idle but do not have adequate income sources. Such depositors can consider opening a Fixed Deposit account with a monthly pay-out option and derive regular monthly income from it. The monthly interest is usually credited to the savings, current or cumulative account of the depositor at a discounted rate. The minimum deposit amount and tenure may differ from one bank to another.
Under this scheme, the depositor gets monthly interest on the fixed deposit collection, which offers liquidity. However, the interest earned on this FD is slightly lower than the interest earned in the cumulative FD option.
The monthly interests on FDs of different amounts at interest rates ranging between 2.50% p.a. to 8.50% p.a. are mentioned in the tables below. Depositors can also use the fixed deposit calculator to calculate the monthly interest of different banks and NBFCs.
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