When will the interest be paid on my fixed deposit?

Interest payment on your fixed deposit (FD) depends on your selected terms and the financial institution's policies. Knowing when you will receive the interest helps you plan your finances. Let us explore when interest is typically paid:

• Payout Frequency Options: When setting up your FD, you typically choose how often interest is paid—monthly, quarterly, half-yearly, annually, or at maturity. Your choice determines the schedule.
• Cumulative FDs: If you opt for a cumulative FD, interest and the principal is generally paid at maturity. It compounds over time, enhancing returns, often at 7% p.a. or higher.
• Non-Cumulative FDs: Non-cumulative FDs typically pay interest at regular intervals (e.g., monthly, quarterly, etc.). This suits those needing periodic income, but returns may be slightly lower than cumulative options.
• Bank or NBFC Specific Schedules: Banks or non-banking financial companies (NBFCs) usually credit interest to your linked savings or current account on the chosen payout date. Interest is credited on the scheduled payout date, which may vary by institution.

To review your FD agreement, consult your bank or NBFC for the exact timing. Explore fixed deposit plans to choose a payout schedule that fits your requirements.