Advantages of Monthly interest on Fixed Deposits
3 min readFixed Deposit monthly income plans offer assured returns every month at higher interest rates than savings accounts, while keeping your lump sum safe and secure.
If you’re looking for a risk-free way to build your savings, fixed deposit is the way to go. Unlike equities, it offers you a secure and convenient way of capitalizing on extra cash within a specific period. What makes FD a safer investment option is its non-volatile nature. Here, you park a lump sum with the bank in the beginning at an agreed rate of interest for a fixed period. In return for locking in the amount, the deposit earns interest throughout the tenure. In the end, you get the invested amount along with the accumulated interest. However, you also have another option in non-cumulative FD, known as Fixed Deposit monthly interest plan. It offers monthly interest on FD to give you a fixed income every month so that you can manage your expenses as well.
What’s a Monthly Interest FD Plan?
Savings and investment are the most essential parts of financial planning but can easily fall to the bottom of lists when you have other financial obligations to take care of. So, you need to manage your money well and put a portion of it aside or invest it for the future, which is highly uncertain. It will bring you a step closer to achieving your lucrative financial goals. A monthly interest on FD plan helps you accomplish just that. It offers you a guaranteed growth, securing your future, along with a monthly payout on your investment for your daily needs.
If you have a lump sum of savings, you can now use it to generate a regular and fixed income by opting for a monthly interest plan. The Fixed Deposit monthly interest plan is vastly popular among the retirees who seek a regular income on their corpus without exhausting the principal amount. However, you can also avail its unfailing benefits while only spending what your savings earns as interest.
Advantages of a Monthly Interest FD Plan
- Take care of monthly expenses: You earn a steady flow of income every month on your investment in order to meet your financial obligations. It saves you from a cash crush.
- Offer assured returns: You are assured to earn secured returns irrespective of market fluctuations. There’s a complete peace of mind and no risk involved.
- More benefit: A Fixed Deposit monthly interest plan provides more interest as compared to an ordinary saving account.
- Lump sum benefit at maturity: While monthly income from interest keeps coming your way, you get the lump sum at the end of monthly interest on FD plan.
- Premature withdrawal: Monthly interest FD plan also comes with a facility of premature withdrawal, allowing you to close the account in case or cash crunch or of emergency. However, you may have to pay a significant sum of money as a penalty for breaking the FD.
How to calculate interest on a monthly interest FD plan?
The FD interest rates calculator, available on Finserv MARKETS, will help you calculate the interest you’ll get as monthly income after investing in a monthly Fixed Deposit monthly income plan
In a nutshell:
If you have extra cash which you want to invest in a risk-free way, while seeking a monthly income from it, consider the monthly interest FD plan. It’s a smart investment that pays you back each month while securing the principal amount for your future use.
