Can I receive monthly interest on my FD?

Yes, you can receive monthly interest payouts on your fixed deposit (FD) account. Here are some key points:

1. Monthly Interest Option: Most financial institutions allow you to receive FD interest on either a monthly or quarterly basis instead of reinvesting it or receiving a lump sum at maturity.
2. Lower Interest Rate: The advertised FD rates are generally applicable only for a cumulative option, where interest is reinvested. Opting for monthly payouts may reduce returns in most financial institutions. Check for the non-cumulative interest rates on your chosen financial institution’s website for the rates applicable to your FD.
3. Good for Regular Income: Monthly interest payouts allow FD to serve as a supplementary income source for pensioners or those seeking regular earnings, like senior citizens or retired individuals.

Therefore, receiving monthly interest earnings from your FDs is certainly possible by selecting suitable options at the time of FD booking in exchange for a small reduction in the applicable interest rate.

Always remember to check the non-cumulative interest rates with the lender before investing, as they differ from the cumulative rates.