Depositors who require monthly income can opt for a monthly fixed deposit plan to meet their daily expenses. This monthly deposit scheme (part of the non-cumulative FD option) can be especially useful for retired senior citizens or those who have large surpluses lying idle but do not have adequate income sources. The monthly interest is usually credited to the depositor’s savings, current, or cumulative account at a discounted rate. The minimum deposit amount and tenure differ from one bank to another.
The difference between other regular FDs and monthly interest FDs is that the depositor receives monthly interest on the fixed deposit corpus, which provides liquidity, though the interest earned is slightly higher in the cumulative FD option.
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FD Monthly Interest Pay-out for Deposits of Rs 5 lakh
The monthly interest on a Rs 5 lakh FD at interest rates ranging from 2.50% to 9.00% p.a. is stated below. You can also compare the fixed deposit interest rates of respective banks and NBFCs and use the fixed deposit calculator for calculating monthly interest. Doing so would make it easier to make an informed decision before opening a fixed deposit account.
| FD Amount | Interest Rates (p.a.) | Monthly Interest for Rs 5 lakh FD |
| Rs 1 lakh | 2.50% | Rs 1,040 |
| Rs 1 lakh | 3.00% | Rs 1,247 |
| Rs 1 lakh | 3.50% | Rs 1,455 |
| Rs 1 lakh | 4.00% | Rs 1,662 |
| Rs 1 lakh | 4.50% | Rs 1,868 |
| Rs 1 lakh | 5.00% | Rs 2,075 |
| Rs 1 lakh | 5.50% | Rs 2,282 |
| Rs 1 lakh | 6.00% | Rs 2,488 |
| Rs 1 lakh | 6.50% | Rs 2,694 |
| Rs 1 lakh | 7.00% | Rs 2,900 |
| Rs 1 lakh | 7.50% | Rs 3,106 |
| Rs 1 lakh | 8.00% | Rs 3,312 |
| Rs 1 lakh | 8.50% | Rs 3,517 |
| Rs 5 lakh | 9.00% | Rs 3,723 |
Individuals should note that the monthly interest amount remains fixed as long as the FD interest rate and deposit amount are unchanged, irrespective of the tenure.
