What are the benefits of opting for monthly interest payouts on an FD of ₹5 Crores?

Choosing monthly interest payouts for a ₹5 crore fixed deposit (FD) with an interest rate starting from around 7% has many advantages, especially if you want regular income. Here is why monthly payouts from banks or non-banking financial companies (NBFCs) offer significant advantages.

• Steady Money Every Month: You receive a consistent monthly income without dipping into your ₹5 crore principal. For instance, at 7% p.a., you earn ₹35,00,000 a year, or ₹2,91,667 monthly. At 8% p.a., it’s ₹3,33,333 monthly.
• Easier to Plan Expenses: With monthly interest earnings-such as ₹3,12,500 at 7.5% p.a. from banks or NBFCs-you can comfortably manage bills and daily expenses without financial strain.
• Keep Your ₹5 Crore Safe: There might be no urgent need for premature withdrawal, helping you avoid penalties and ensuring your principal remains safe with banks or NBFCs.
• Helps Retirees: If you’re retired, monthly payouts act like a pension.
• Spend or Save Flexibility: You can use the monthly cash for expenses, save it, or invest it elsewhere, giving you options with your FD earnings.
• Reliable and Predictable: FDs from banks or NBFCs starting at 7% p.a. are low-risk, so your monthly income stays steady compared to shares.

Consult with banks or NBFCs for monthly payout options and compare rates to get the most from your ₹5 crore FD.