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How Much You Can Earn Through FD Monthly Interest
Posted on Thursday, September 26th, 2024 | By IndusInd Bank
You may already be familiar with the advantages of fixed deposits, such as risk-free returns, loan facilities, Deposit Insurance and Credit Guarantee Corporation (DICGC) insurance coverage, and tax benefits. But did you know that you can opt for monthly interest payouts as well? IndusInd Bank Fixed Deposits offer this feature along with competitive interest rates, auto-renewal options, and hassle-free instant booking.
Knowing your FD monthly interest earnings is crucial, as it helps in managing monthly expenses and planning for future financial needs. Find out how to calculate this below.
Using an FD Calculator to Know Monthly Interest on Different Amounts
A fixed deposit calculator is an online tool that simplifies the calculation of your monthly interest earnings. All you have to do is enter the type of deposit (standard or senior citizen FD), investment amount, tenure, and the applicable interest rate. After that, the tool will display the amount of interest you will earn each month.
Let’s calculate the monthly interest you could earn with different investment amounts with the help of an online FD calculator. The assumed rate is 7.20%.
Fixed Deposit Monthly Interest on ₹1 Lakh (Approximately)
- 1 year: ₹616 monthly
- 5 years: ₹700 monthly
- 10 years: ₹867 monthly
How this Amount Helps: This amount may seem modest, but it can be quite useful for managing small, recurring expenses. For instance, it can cover your monthly mobile phone bill, electricity bills, or subscription expenses.
Fixed Deposit Monthly Interest on ₹5 Lakh (Approximately)
- 1 year: ₹3,082 monthly
- 5 years: ₹3,572 monthly
- 10 years: ₹4,339 monthly
How this Amount Helps: This amount can reduce the burden on your primary income and provide more financial flexibility. It can be used to cover grocery expenses, a portion of rent, or even an Equated Monthly installment (EMI) on a small loan.
Fixed Deposit Monthly Interest on ₹10 Lakh (Approximately)
- 1 year: ₹6,163 monthly
- 5 years: ₹7,145 monthly
- 10 years: ₹8,677 monthly
How this Amount Helps: This amount can help you manage household bills, fund minor home repairs, support kids’ education, or save for a family trip.
Fixed Deposit Monthly Interest on ₹20 Lakh (Approximately)
- 1 year: ₹12,327 monthly
- 5 years: ₹14,291 monthly
- 10 years: ₹34,710 monthly
How this Amount Helps: This amount can cover significant portions of your living expenses, support healthcare costs, or be reinvested for more profits. For retirees, this income could provide a comfortable lifestyle without the need to compromise on their standard of living in their golden years.
Note: This is a rough estimate based on an assumed annual interest rate of 7.2%. Actual returns may vary depending on the specific terms of the fixed deposit.
Additional Rate for Seniors
Note that senior citizens often receive a higher interest rate on their FDs, generally 0.25% to 0.50% above the standard rate. This extra FD income means they could get more from their life savings and the additional income can positively affect their financial planning.
Also Read: Comprehensive Guide On How To Calculate Fixed Deposit Interest Rates
Tips to Optimise Your FD Monthly Interest
| Opt for the best FD interest rate | Choose IndusInd Bank Fixed Deposits to earn best-in-class FD interest rates and give your hard-earned money the boost it deserves. |
| Choose longer tenures | Opting for a longer tenure usually attracts higher interest rates, which means you can increase the monthly interest you earn. |
| Ladder your FDs | Split your total investment into multiple FDs with varying tenures. This laddering strategy not only enhances liquidity but also captures varying FD interest rates over time. |
| Senior citizen benefits | If you have senior citizens in your family, such as grandparents, consider booking FDs on their behalf to benefit from higher interest rates and premium features. |
Key Takeaways
Fixed deposits not only offer secure returns and predictable growth but also monthly interest payouts to meet your financial needs. The amount you can earn depends on the principal amount, interest rate, and tenure of the FD. Thus, selecting a reliable financial institution for your fixed deposits is crucial.
You can consider IndusInd Bank Fixed Deposits to enjoy attractive interest rates and the flexibility of monthly payouts. The best part is that you can book your FD online from anywhere with a 100% digital and paperless process. Apply today!
Disclaimer:The information provided in this article is generic and for informational purposes only. It is not a substitute for specific advice in your circumstances. Hence, you are advised to consult your financial advisor before making any financial decision. IndusInd Bank Limited (IBL) does not influence the views of the author in any way. IBL and the author shall not be responsible for any direct/indirect loss or liability incurred by the reader for making any financial decisions based on the contents and information.
