Frequently Asked Questions

The ‘Interest Payout’ option is useful to investors who are looking for regular income from their FDs on a monthly or quarterly basis.

Let’s say you deposited ₹1 Lakh  in an FD for 1 year at a 5.1% interest rate, and you opt for a monthly payout. Your ₹1 Lakh returns about ₹5,198 at the end of the year. You will then get this interest amount distributed on monthly basis. This works out to about ₹433.

On a quarterly basis, you should get ₹1,300.

For half yearly payouts, you get ₹2,599, and so on.

If you go for more than a year, you get a little bit more as your applicable interest is also compounded and used as principal amount for the next year's interest calculation. For year 2, the principal becomes ₹1,05,198.