A Fixed Deposit, as opposed to a conventional savings account, is an investment that pays a greater rate of interest. The account holder must deposit a large sum of money with a financial institution for a set period of time. The tenor usually lasts anything from one month to five years. The deposit will be retained by a predetermined interest rate that will be paid to the account holder either at regular intervals (fortnightly, monthly, quarterly, or yearly) or at maturity.
A Fixed Deposit monthly income, for example, will be received by an account holder who has chosen a monthly interest payout. Institutions such as banks, non-banking financial companies, building societies, and credit unions offer FD programs.
The following is a list of the annual interest rates on FDs offered by a few notable Indian banks in 2024 (for deposits under Rs.1 crore):
| Banks | Interest rate for General Citizens Tenure (7 days to 10 years) |
Interest rate for Senior Citizens Tenure (7 days to 10 years) |
| SBI | 3.50% – 6.50% | 4.00% – 7.50% |
| Punjab National Bank | 3.50% – 6.50% | 4.30% – 7.30% |
| HDFC | 3.00% – 7.00% | 3.50% – 7.75% |
| Post Office | 6.90% – 7.50% | 6.90% – 7.50% |
| Axis Bank | 3.00% – 7.00% | 3.50% – 7.75% |
| ICICI Bank | 3.00% – 6.90% | 3.50% – 7.50% |
| Bank of Baroda | 4.25% – 6.50% | 4.75% – 7.50% |
| Canara Bank | 4.00% – 6.70% | 4.00% – 7.20% |
| Bank of India | 3.00% – 6.00% | 3.50% – 6.50% |
| Union Bank of India | 3.00% – 6.50% | 3.50% – 7.00% |
Most of the banks that have been offering FD schemes have the FD calculator and the facility on the portal, where a user can calculate the amount.
Here is the procedure mentioned below that would help you calculate your monthly interest payout through the calculator:
Step 1: You need to go to the official portal of the bank.
Step 2: Navigate to the option that leads to the Fixed Deposit Calculator page.
Step 3: Enter the amount of deposit and select the type of customer, the type of FD, and the period.
When you provide all of these details, you will be shown the interest amount and how much potential you stand to receive in the form of an aggregate interest amount.
In order to convert an annual interest rate to a monthly interest rate - follow these steps:
FDs are one of the most famous investment options in the country, and the reasons that make them preferred are:
Fixed Deposits with a premature withdrawal option can be canceled before the maturity date. Preclosure of an FD account is usually subject to a penalty from most banks. An account holder can close their FD by going to their bank and filling out a form. The bank would then process their request and charge the account the necessary fees. The refunds would then be transferred to the account holder, and all documents submitted at account opening would be returned. Many banks also provide an online option for closing a savings account.
To close or break an FD account online, simply follow the instructions below: