Fixed Deposit (FD) monthly income schemes are an ideal option for those who want to earn a regular fixed income on a monthly basis.
| Top banks monthly income FD interest rates | ||
|---|---|---|
| Bank | Interest rate | Tenure range |
| Kotak Mahindra Bank | 6.80% | 365 days to 389 days |
| Union Bank of India | 6.75% | 10 months to 14 months |
| Federal Bank | 6.70% | 1 year |
| Allahabad Bank | 6.50% | 1 year to less than 2 years |
| Bank of Baroda | 6.45% | 1 year |
*Interest rates are subject to change and can be revised without prior notice
| Top banks monthly income FD interest rates for senior citizens | ||
|---|---|---|
| Bank | Interest rate | Tenure range |
| IDFC Bank | 8% | 366 days |
| Union Bank of India | 7.25% | 10 months to 14 months |
| Federal Bank | 7.20% | 1 year |
| Kotak Mahindra Bank | 6.98% | 365 days to 389 days |
Key benefits and features of monthly income FD scheme
While the features of these accounts can vary from one bank to another, a general set of features that you may see with these accounts are:
- With some banks, there is a minimum and a maximum amount that can be deposited in these accounts.
- The interest is generally paid at a discounted rate for monthly payout FDs
- Some banks even offer the option of monthly, quarterly or half-yearly income plans.
- Some of these products come with credit ratings that form a good indicator of how good the plan is.
- These deposits allow for premature withdrawals to be made from them.
- Almost all deposits provide nomination facilities.
- The duration of these deposits can go all the way up to 10 years.
- Some banks permit depositors to withdraw as much as 95% of the amount deposited.
- Some of these deposits come with overdraft facilities on the savings/current accounts linked to them and any excess money needed by the account is withdrawn from the FD.
- With some banks, no TDS is deducted by the banks on the interest earned.
Eligibility criteria for opening a Monthly Income Scheme FD
The eligibility criteria for these deposits follow the same rules as those for the regular term deposits where any individual, company, HUF or association of people can open the fixed deposits. Even NRIs are eligible to open monthly income FDs.
The documents required also tend to be the same and will include the application form along KYC documents like an identity proof, address proof etc.
Key Information before Opening a Fixed Deposit:
| Eligibility to Open an FD |
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| Documents Required |
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| Benefits of an FD |
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