Will the monthly income FD scheme provide me with monthly interest?

Yes, the monthly income fixed deposit scheme is specifically designed to provide monthly interest payments. This type of FD is ideal for individuals who require a regular income stream from their investment, such as retirees or people looking to supplement their monthly income.

How Does the Monthly Income FD Scheme Work?

• Monthly Interest Payout: In a monthly income FD scheme, the interest earned on the FD is paid to you every month. Instead of receiving the interest at maturity or annually, it is paid out every month.
• Principal Amount: The principal amount you deposit in the FD remains intact for the entire tenure of the FD, but the interest earned is paid out periodically (monthly).
• Interest Rate: The interest rate on monthly income FDs is usually lower than the interest rate on regular FDs (due to the monthly payout feature), but it still offers a steady income stream.
• Tenure: The tenure for monthly income FDs typically ranges from 1 year to 5 years. The most attractive rates are often available for longer tenures, depending on the prevailing market conditions and the financial institution’s policy.