Is it possible to get interest payouts from an FD every month?

Many financial institutions pay interest every month on fixed deposits (FDs). This means you can get the interest your FD earns directly into your account each month, instead of waiting until the FD term ends. Here’s a simple breakdown of how this typically works:

• Choice of Payout: When you open an FD, you can often pick how you want the interest paid—monthly, every few months, or at the end of the term. Choosing monthly payouts is great if you want regular cash flow.
• Steady Money Flow: With monthly payouts, the interest goes straight to your savings account each month. This can help cover daily expenses or bills, making it a popular choice for people like retirees who need extra income.
• Most Suitable For: Monthly FD payouts suit people who want a safe investment with predictable money coming in. It’s perfect if you don’t want to save up the interest and prefer using it immediately.
• Things to Check: The interest rate for monthly payouts is generally the same as other FD options, but the total returns might differ slightly because of how the payouts are structured. It’s good to look at different financial institutions’ FD terms to find the best deal.