Indians prefer FDs as they offer assured and safe returns on their investments. For most of us, it is a traditional investment to keep a savings portfolio in FDs. As per a SEBI survey in 2019, 95% of the Indian families preferred bank FDs, and less than 10% were keen to invest in Mutual funds, and Stocks.
FDs can be opened in banks, post offices, and NBFCs. If you open a bank FD Account, you will easily understand the best fd rates that you get on your fixed deposits as per your FD tenure.
By investing in tax-saving FDs you can save up to Rs 1.5 lakh per year u/s 80C of the Income Tax Act. The returns are provided on both annual and monthly basis as per your preference. To make it easier for you there are fixed deposit calculators that help you check monthly returns on your Fixed Deposit.
The interest earned on bank FDs is higher in comparison to the savings account.
All the banks in India have a provision to open a fixed deposit account. FD Account can be opened online without visiting the branch, especially during the ongoing COVID-19 pandemic. Most of the banks offer monthly payouts on FDs.
You can go for such kinds of deposits from HDFC Bank, Indian Bank, SBI Bank, Axis, and others. You have the option to opt for monthly, quarterly, and annual returns.
You have to start your FD in a lump sum to get monthly returns. If you want an alternative source of income on a monthly basis, you can opt for a monthly payout on your FDs. To know your monthly returns it is better to use the online FD calculator. For example, you can check Indian bank fd rates on the Indian Bank’s website.
Most of the banks In India have a provision to open an FD account through mobile banking and internet banking. It enables all the potential investors to ascertain the monthly interest payout that they can earn.
You deposit the amount in a lump sum and the bank will pay the equated monthly installments. The monthly installments include the part principal and the interest. The interest will be calculated on the reducing balance and it will be paid on a monthly basis.
For example, if you have deposited Rs. 5 lakh and after a few days, the deposit can be withdrawn as per your financial needs. You can withdraw up to the limit specified by your bank and there can be some penalty attached as well. The amount will be credited to your bank account and for the remaining sum; the interest is to be accumulated as per the FD tenure.
The bank will revise the interest rates on regular basis based on the following factors:
So, you can open a Fixed Deposit Account in any of the banks in India. You can deposit a lump sum amount and get the payout after the maturity period or on a monthly basis. Most Indians are averse investors and therefore prefer fixed deposits as they are safe and secure method to meet their financial goals.