The monthly fixed deposit plan is ideal for depositors who need a fixed income monthly to meet their expenses. This plan is especially popular among retired individuals or those having large surpluses from inheritance or other sources but does not have adequate income sources. Such individuals can deposit their surpluses in FDs with a monthly pay-out option and then, derive regular monthly income from it.
FD Monthly Interest Pay-out for Deposits of Rs 1 lakh
The monthly interest on a Rs 1 lakh FD at interest rates ranging from 2.50% to 8.50% p.a. is given below to provide an estimate of monthly income. However, you can also look at the respective bank’s and NBFC’s by using the fixed deposit calculator for the same.
| FD Amount | Interest Rates (p.a.) | Monthly Interest for Rs 1 lakh FD |
| Rs 1 lakh | 2.50% | Rs 208.33 |
| Rs 1 lakh | 3.00% | Rs 250 |
| Rs 1 lakh | 3.50% | Rs 291.66 |
| Rs 1 lakh | 4.00% | Rs 333.33 |
| Rs 1 lakh | 4.50% | Rs 375 |
| Rs 1 lakh | 5.00% | Rs 416.66 |
| Rs 1 lakh | 5.50% | Rs 458.33 |
| Rs 1 lakh | 6.00% | Rs 500 |
| Rs 1 lakh | 6.50% | Rs 541.66 |
| Rs 1 lakh | 7.00% | Rs 583.33 |
| Rs 1 lakh | 7.50% | Rs 625 |
| Rs 1 lakh | 8.00% | Rs 666.66 |
| Rs 1 lakh | 8.50% | Rs 708.33 |
The depositor should note that the monthly interest amount remains the same as long as the FD interest rate and FD amount are unchanged, irrespective of the tenure. Also senior citizen FD rates offered by most banks and NBFCs are 0.25-0.80% higher than their regular FD rates.
Comparison of Top 20 Scheduled Banks based on FD Rates
Banks | Highest FD rate (% p.a.) | 1-year FD rate (% p.a.) | 3-year FD rate (% p.a.) | 5-year FD rate (% p.a.) | Additional interest rate for senior citizens (% p.a.) |
| Unity Small Finance Bank | 9.00 | 7.85 | 8.15 | 8.15 | 0.50 |
| North East Small Finance Bank | 9.00 | 7.00 | 9.00 | 6.25 | 0.50 |
| Suryoday Small Finance Bank | 8.60 | 8.05 | 8.60 | 8.25 | 0.50 |
| Utkarsh Small Finance Bank | 8.50 | 8.00 | 8.50 | 7.75 | 0.60 |
| Shivalik Small Finance Bank | 8.30 | 6.00 | 7.50 | 6.50 | 0.50 |
| Jana Small Finance Bank | 8.25 | 8.25 | 8.25 | 8.20 | 0.50 |
| Ujjivan Small Finance Bank | 8.25 | 8.25 | 7.20 | 7.20 | 0.50 |
| ESAF Small Finance Bank | 8.25 | 6.00 | 6.75 | 6.25 | 0.50 |
| Equitas Small Finance Bank | 8.25 | 8.10 | 8.00 | 7.25 | 0.50-0.75 |
| SBM Bank | 8.25 | 7.05 | 7.30 | 7.75 | 0.50 |
| DCB Bank | 8.05 | 7.10 | 7.55 | 7.40 | 0.50 |
| Bandhan Bank | 8.05 | 8.05 | 7.25 | 5.85 | 0.50-0.75 |
| RBL Bank | 8.00 | 7.50 | 7.50 | 7.10 | 0.50 |
| AU Small Finance Bank | 8.00 | 7.25 | 7.50 | 7.25 | 0.50 |
| Induslnd Bank | 7.99 | 7.75 | 7.25 | 7.25 | 0.50 |
| IDFC First Bank | 7.90 | 6.50 | 6.80 | 6.75 | 0.50 |
| YES Bank | 7.75 | 7.25 | 7.25 | 7.25 | 0.50-0.75 |
| Central Bank of India | 7.50 | 6.85 | 7.00 | 6.75 | 0.50 |
| Punjab & Sind Bank | 7.45 | 6.30 | 6.00 | 6.00 | 6.00 |
| HDFC Bank | 7.40 | 6.60 | 7.00 | 7.00 | 0.50 |
Documents Required for Monthly Income Scheme
Identity Proof
- Aadhaar Card
- Passport
- PAN card
- Driving license
- Voter ID card
- Photo ration card
Address Proof
- Electricity bill
- Passport
- Telephone bill
- Bank Statement with Cheque
- Certificate/ ID card issued by Post office
