We all invest with some purpose in mind. While we might not earmark each investment with each financial goal, we know if we will need this money for a long time to come or not. We can choose investment options based on the tenor and the returns on the basis of that tenor. If you are able to allow a particular principal amount stay invested for 10 to 15 years or more and have a risk-taking capability, then you are generally advised to invest in strong equity stock or mutual funds. If, however, your investment horizon is lesser than this and you need it in a few years’ time, its best to keep the capital safe and not invest in risky avenues.
Fixed Deposit with Monthly Interest Payout
Fixed income instruments like Fixed deposits come into play here. If you require a monthly payout for meeting recurring expenses or wish to utilize a return from one investment for another investment as a monthly deposit, go for fixed deposit with monthly payout option. This is also called the non-cumulative option where you can choose the payout period – monthly, quarterly, or half-yearly.
Monthly Interest Rate
Usually, the fixed deposit rates are for decided for an annual term. You can easily calculate the fixed deposit interest rate per month by dividing the annual rate by 12 to know the exact percentage you will be earning each month. For example, the rate offered on a 3-year FD is 10%. You can divide it by 12: (10% /12) = 0.8% to know the rate earned each month.
Also, Read This: What Are All the Types of Bank Deposits?
Choosing the Best FD Interest Rates
You can earn a high monthly interest rate by choosing an FD which pays high interest rates. Bank FDs are currently offering 7% – 7.75% annually. You can look out for equally safe and guaranteed company FDs which easily offer 1-2% higher interest rates.
Company FDs like Bajaj Finance Fixed Deposit (FD) have interest rates from 7.72% to 8.95%.
To understand the best interest rate for you, take a look at the table below. If you choose the tenor up to 23 months, with a monthly payout you can receive 7.72% of annual interest whereas with 36 months you can receive 8.28% of annual interest.
|Tenor in Months||Minimum deposit (in Rs.)||Cumulative||Non-Cumulative|
|12 – 23||25,000||8.00%||7.72%||7.77%||7.85%||8.00%|
|24 – 35||8.15%||7.88%||7.93%||8.00%||8.15%|
|Special tenors scheme|
You can utilize the FD monthly payout calculator (i.e., the online FD calculator) on Bajaj Finserv website. It is a free online Fixed Deposit calculator with a user-friendly interface, which uses various parameters (as per the preference of investors) to calculate the interest. Here are the steps to calculate the interest amount-
- Select the customer category you fall in: new customers, existing customers, or senior citizen. The rate of interest differs on the basis of the category to which you belong such as a regular customer is offered 8.6% of the rate of interest, while senior citizens are offered an additional 0.35% and the existing customer is offered additional 0.25%.
- In the next step, you need to choose between the interest payout option i.e. cumulative or non-cumulative. This is an important step as your interest rate will change accordingly.
- Then you need to input the amount which you desire to invest. With Bajaj Finance you can start a Fixed Deposit with a minimum amount of Rs. 25,000.
- The last step is to ascertain the term of your investment, which ranges from 12 months to 60 months with Bajaj Finance.
Thus, achieving a lucrative fixed monthly payout is possible with the right FD payout option and high-interest rate.