How to Earn Assured Monthly Interest on Fixed Deposit (FD)

Posted on Thursday, October 17th, 2024 | By IndusInd Bank

Fixed Deposits (FDs) are known for their guaranteed returns. They offer a steady income, which is crucial for financial planning. Investors earn interest at agreed rates by depositing a set amount for a specific period. This interest is compounded on a monthly, quarterly, or cumulative basis.

For many investors, the appeal is the steady monthly interest payments. They can help with the need for a reliable income. This guide will walk you through how to get monthly income from FDs, offering insights into maximising this financial tool for your benefit.

Factors Influencing Profits

●       Principal Amount

The interest earned depends on the initial investment or the principal amount. A higher principal amount significantly increases the overall FD returns.

●       Interest Rate

The bank’s interest rates greatly influence monthly income. Higher interest rates increase monthly interest earnings. Even a slight increase in the interest rate can increase the monthly returns on the FD.

●       Tenure

Choosing a longer tenure can increase monthly earnings due to compounding. However, it is important to balance this with the need for liquidity. Withdrawals made too soon may result in penalties.

How Do I Apply for a Fixed Deposit at IndusInd Bank?

 Web Application

1. Login: Access your account through Internet banking.
2. Navigate to FD Option: Select the deposit option.
3. Open FD: Click on ‘Open FD’ and proceed to fill out your personal and FD details.
4. Deposit Amount: Choose the amount you wish to invest from your savings account.

Mobile Application (Indus Mobile)

1. Login: Use your Mobile banking ID to log in.
2. Access FD Feature: Navigate to the deposit option.
3. Create FD: Click ‘Create Fixed Deposit’ and accurately complete the required form.
4. Submit and Fund: After you submit the form successfully, the amount will be transferred from your savings account to the FD.

Web Application (Indus Net)

1. Verify PAN & Aadhar: Verify your PAN and Aadhar details.
2. Fill Personal and FD Details: Complete the necessary information accurately.
3. Complete Video-KYC: Follow the steps for video-based KYC verification.
4. Fund Your FD: Transfer the desired amount from your savings account to the FD.

This process is a simple and efficient way to start an IndusInd Bank Fixed Deposit. It uses digital platforms for both existing and new IndusInd Bank customers.

Also read: How to Calculate Fixed Deposit Returns: A Simple Guide

Making Well-Informed Decisions

Before making an FD investment, think about these tactics:

●       Comparison of Interest Rates

Comparing FD interest rates is crucial. It ensures the highest returns on your investment. Interest rates depend on the tenure and deposit amount.

●       Laddering Deposits

One of the most important investing concepts is diversification. Investing in several FDs with different tenures is known as laddering deposits. This approach maximises returns while balancing liquidity.

●       Interest Payout Options

Choose the interest payout frequency that fits your needs and goals. Banks offer monthly, quarterly, semi-annual, or annual options. An FD with a monthly payout can help provide a stable income or supplement your current income.

●       Reasonable Expectations

FDs provide stability and predictability. But it is essential to keep expectations in check. Over time, taxes and inflation may cut your income’s buying power. Money loses value due to inflation. This loss could affect the value of your FD returns. Use online FD calculator or formulas to estimate how to get monthly interest from the bank based on the principal amount, tenure, and interest rate. This will help you plan your finances better.

Conclusion

In conclusion, opening a Fixed Deposit (FD) with monthly interest payouts provides a dependable source of steady income. Choose your payout frequency wisely to ensure financial stability and predictable returns.

Ready to earn assured monthly interest with your savings? Open an IndusInd Bank Fixed Deposit account today! Discover the benefits of reliable financial planning with our competitive interest rates.

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.