How much you can earn through FD Monthly Interest (2024)

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2 mins Read | 8 Months Ago

Investing in a Fixed Deposit (FD) can provide you with financial security and stability knowing that your money is growing steadily over time. However, many investors are unaware of the strategies they can use to maximise their returns from an FD investment. One effective way to do this is by earning an assured monthly interest on your FD. By opting for a monthly interest payout, you can receive regular income that can add to your other sources of income or cover your expenses.

In this blog, let’s explore the steps you can take to enhance your FD investment and enjoy a steady stream of income. Also, know how you can start an FD investment with ICICI Bank.

Benefits of monthly interest on FDs

The monthly interestearned from an FD makes it an ideal choice for retirees and those seeking a reliable income source. Below are some of its benefits:

1. Predictable income source:

FDs with monthly interest payouts provide retirees and individuals with a dependable and expected cash inflow. This proves important for those looking for a fixed income during retirement.

2. Careful budgeting:

Retirees and individuals seeking regular incomes find comfort in planning their financial lives carefully. The consistent cash inflows from FDs allow for careful budgeting, enabling individuals to align their expenditures with the steady income generated, thereby boosting financial discipline.

3. Enhanced cash flow flexibility:

Monthly interest payouts on FDs not only guarantee a steady income but also contribute significantly to flexible and liquid cash flow. This liquidity becomes a valuable asset that can help to cover daily expenses, planned financial goals or unforeseen emergencies.

4. Opportunities for reinvestment:

The accrued interest from FDs becomes a multipurpose fund, offering opportunities for strategic reinvestment. This fund allows individuals to explore different ventures and maximise capitalisation. The cyclical nature of reinvestment presents a potential for wealth growth and diversification.

Monthly interest on Rs 1 lakh in Fixed Deposits

The below section explores the monthly interest returns on Rs 1 lakh in Fixed Deposits.

For general investors

• 3 months: Rs 394 monthly at 4.75%

• 1 year: Rs 555 monthly at 6.7%

• 5 years: Rs 580 monthly at 7.0%

• 10 years: Rs 572 monthly at 6.9%

For senior citizens

• 3 months: Rs 436 monthly at 5.25%

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• 1 year: Rs 596 monthly at 7.2%

• 5 years: Rs 621 monthly at 7.5%

• 10 years: Rs 621 monthly at 7.5%

Monthly interest on Rs 10 lakh in Fixed Deposits

Refer the below section to understand how this amount can generate monthly interest returns, offering financial stability and growth:

For general investors

• 3 months: Rs 3,943 monthly at 4.75%

• 1 year: Rs 5,552 monthly at 6.7%

• 5 years: Rs 5,799 monthly at 7.0%

• 10 years: Rs 5,717 monthly at 6.9%

For senior citizens

• 3 months: Rs 4,356 monthly at 5.25%

• 1 year: Rs 5,964 monthly at 7.2%

• 5 years: Rs 6,211 monthly at 7.5%

• 10 years: Rs 6,211 monthly at 7.5%

Monthly interest on Rs 20 lakh in Fixed Deposits

Refer the below section to explore the monthly interest figures for this amount.

For general investors

• 3 months: Rs 7,885 monthly at 4.75%

• 1 year: Rs 11,105 monthly at 6.7%

• 5 years: Rs 11,599 monthly at 7%

• 10 years: Rs 11,434 monthly at 6.9%

For senior citizens

• 3 months: Rs 8,712 monthly at 5.25%

• 1 year: Rs 11,928 monthly at 7.2%

• 5 years: Rs 12,422 monthly at 7.5%

• 10 years: Rs 12,422 monthly at 7.5%

Monthly interest on Rs 1 crore in Fixed Deposits

A Fixed Deposit with a sum of Rs 1 crore becomes a powerful tool for wealth management. The below section explores the monthly interest earnings for both general and senior investors.

For general investors

• 3 months: Rs 39,427 monthly at 4.75%

• 1 year: Rs 55,523 monthly at 6.7%

• 5 years: Rs 57,994 monthly at 7%

• 10 years: Rs 57,171 monthly at 6.9%

For senior citizens

• 3 months: Rs 43,559 monthly at 5.25%

• 1 year: Rs 59,641 monthly at 7.2%

• 5 years: Rs 62,111 monthly at 7.5%

• 10 years: Rs 62,111 monthly at 7.5%

Monthly interest on Rs 1,99,99,999 in Fixed Deposits

Let’s understand the monthly interest calculations for a Fixed Deposit with a sum of Rs 1,99,99,999

For general investors

• 3 months: Rs 78,854 monthly at 4.75%

• 1 year: Rs 1,11,046 monthly at 6.7%

• 5 years: Rs 1,15,989 monthly at 7%

• 10 years: Rs 1,14,341 monthly at 6.9%

For senior citizens

• 3 months: Rs 87,118 monthly at 5.25%

• 1 year: Rs 1,19,283 monthly at 7.2%

• 5 years: Rs 1,24,222 monthly at 7.5%

• 10 years: Rs 1,24,222 monthly at 7.5%

Here is a table representing the monthly interest rates that general and senior investors can earn through ICICI Bank FDs for different investment amounts and durations:

Please note that the interest rates and monthly interest amounts may vary over time. It is essential to verify the current rates with the Bank before making any investment decisions.

Types of Fixed Deposits offered by ICICI Bank

ICICI Bank offers two types of Fixed Deposits catering to different preferences and financial goals.

1. Traditional Fixed Deposit:

This provides flexibility in receiving interest earnings at regular intervals, usually on a quarterly or monthly basis. You can choose between monthly or quarterly payouts, ensuring a consistent income stream.

2. Cumulative Fixed Deposit:

This allows you to accumulate interest earnings over the deposit tenure. Rather than receiving periodic payments, compound interest accrues and is added to the principal amount, leading to increased returns. Upon maturity, you receive the principal amount along with the accumulated interest as the final payment.

You can choose between these options based on your financial necessities and long-term objectives.

Eligibility for Fixed Deposits

Residents, non-residents, sole proprietorship firms, trust accounts and various others can invest in it. It is vital for individuals to complete KYC verification for their Savings Account and be mindful of any tax implications related to the interest earned.

Documentation required for Fixed Deposits

Individuals can present any of the following documents to apply for ICICI Bank Fixed Deposits:

• Passport

• Driving licence issued by the Local Transport Council

• Voter ID

• A job card issued by NREGA and signed by a state government officer

• Report from the National Population Register

• Aadhaar number will serve as proof of possession.

While these documents serve as valid proof, the PAN card issued in India is no longer considered acceptable for identity proof in these cases.

How to use an FD calculator to determine the monthly interest?

To use ICICI Bank FD calculator, follow these steps:

• Visit https://www.icicibank.com/calculator/fd-calculator

• Select the customer type – general or senior citizen.

• Choose the type of Fixed Deposit interest rate payout - cumulative, quarterly, monthly or short term FD. Select ‘Monthly’.

• By default, the FD start date will be the current date.

• Enter the FD amount.

• Enter the FD tenure in either years/months/days (minimum 90 days for monthly interest FD payouts).

• For your convenience, the calculator will display the relevant interest rate, EMI and maturity date simultaneously.

Conclusion

Fixed Deposits are one of the safest and most secure ways to earn profits. Receiving monthly interest on your FDs enables you to earn steady incomes while adding convenience and flexibility to your financial plans.

Therefore, investors need to carefully consider their financial targets, liquidity concerns and explore the Fixed Deposit choices available at ICICI Bank to optimise their savings benefit.