{"id":8297,"date":"2025-08-12T09:09:56","date_gmt":"2025-08-12T09:09:56","guid":{"rendered":"https:\/\/lemonn.co.in\/blog\/?post_type=banking&#038;p=8297"},"modified":"2025-08-12T09:09:56","modified_gmt":"2025-08-12T09:09:56","slug":"monthly-interest-payout-fixed-deposit-fd-interest-rates-advantages","status":"publish","type":"banking","link":"https:\/\/lemonn.co.in\/blog\/banking\/monthly-interest-payout-fixed-deposit-fd-interest-rates-advantages\/","title":{"rendered":"Monthly Interest Payout Fixed Deposit\u00a0(FD)\u00a0\u2013 Interest Rates &#038; Advantages"},"content":{"rendered":"\n<p>Some banks offer fixed deposits with a monthly interest payout option, where interest is calculated quarterly but paid monthly at a discounted rate. HDFC Bank, for example, allows depositors to choose a monthly payout if the tenure exceeds <strong>six\u00a0months<\/strong>. This product suits retirees or those seeking regular income from their savings.<\/p>\n\n\n\n<h3 id='monthly-payout-fd-highlights'  id=\"boomdevs_1\" class=\"wp-block-heading\">Monthly Payout FD Highlights<\/h3>\n\n\n\n<figure class=\"wp-block-table\"><table><thead><tr><th>Feature<\/th><th>Description<\/th><\/tr><\/thead><tbody><tr><td>Tenure eligibility<\/td><td>Usually >6\u00a0months<\/td><\/tr><tr><td>Interest calculation<\/td><td>Quarterly compounding; monthly payout at a slight discount<\/td><\/tr><tr><td>Best for<\/td><td>Pensioners, individuals needing steady cash flow<\/td><\/tr><tr><td>Taxation<\/td><td>Interest added to income and taxed per slab<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p>Because the monthly payout rate is slightly lower than the cumulative rate, compare the effective annual yield before investing. Also, ensure that the bank credits interest on a fixed date each month. For higher returns, some investors prefer quarterly or cumulative schemes unless monthly income is essential.<\/p>\n","protected":false},"featured_media":0,"template":"","class_list":["post-8297","banking","type-banking","status-publish","hentry"],"blocksy_meta":[],"_links":{"self":[{"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/banking\/8297","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/banking"}],"about":[{"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/types\/banking"}],"wp:attachment":[{"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/media?parent=8297"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}