Fixed Deposit Monthly Income Schemes

In summary

A Fixed Deposit Monthly Income Scheme is a non-cumulative deposit designed to provide predictable interest payments at regular monthly intervals.

• Interest is paid monthly instead of being reinvested until maturity.
• The monthly payout depends on the deposit, tenure, investor category, and applicable non-cumulative interest rate.
• Bajaj Finance Fixed Deposit accepts deposits from Rs. 15,000 to Rs. 3 crore.
• Customers below 60 can receive monthly rates up to 7.16% p.a., effective w.e.f 07 October, 2026

• Senior citizens can receive up to 0.40% p.a. additional interest, based on the applicable tenure and payout option.

  
  

Monthly payouts can support planned expenses, but investors should consider taxation, premature withdrawal conditions, and future income requirements before investing.

What is a Fixed Deposit Monthly Income Scheme?

A Fixed Deposit Monthly Income Scheme is a non-cumulative FD that pays earned interest every month.

Unlike cumulative FDs, this option does not reinvest interest for compounding until maturity.

Monthly payouts remain fixed according to the booked rate, although the amount may be subject to applicable TDS deductions.

A monthly income FD combines predictable payouts with flexible deposit tenures and defined returns.

• Regular income: Interest is credited monthly to the registered bank account.
• Flexible tenure: Bajaj Finance offers investment periods between 12 and 60 months.
• Assured returns: Market movements do not change the interest rate after booking.
• Accessible investment: The minimum deposit is Rs. 15,000.
• Senior citizen benefit: Eligible investors aged 60 or above can receive up to 0.40% p.a. additional interest.
• Loan facility: Investors may obtain a loan against FD up to 75% of the deposit value.
• Nomination option: Depositors can add a nominee while completing their application.

• No booking fee: Bajaj Finance does not charge processing fees for opening its Fixed Deposit.

  
  

Premature withdrawal is available subject to applicable conditions and may result in reduced interest rather than an exit-load charge.

Monthly income options differ in structure, risk, taxation, payout frequency, and applicable investment limits.

Post office monthly income scheme

The Post Office Monthly Income Scheme is not a fixed deposit, although it provides monthly interest under a government-supported savings framework. It has a five-year tenure and separate deposit limits, withdrawal conditions, eligibility rules, and interest rates prescribed by the government.

Senior citizen savings scheme

The Senior Citizen Savings Scheme is a government-supported retirement product providing quarterly, rather than monthly, interest payments to eligible investors. It should not be confused with a Senior Citizen FD, which offers issuer-specific tenures, rates, and monthly payout options.

Monthly income plan

Monthly Income Plan commonly describes a market-linked mutual fund arrangement, rather than an FD providing assured monthly interest. Income distributions are not guaranteed because they depend on portfolio performance, available surplus, and decisions made by the fund house.

How to apply for fixed deposit monthly income scheme?

You can book a Bajaj Finance Fixed Deposit online without opening a separate savings account with the company.

Steps to open a monthly income FD

1. Visit the Bajaj Finserv Fixed Deposit website and select ‘Open FD’.
2. Enter your mobile number and complete the OTP verification.
3. Provide the investment amount, tenure, and monthly payout preference.
4. Enter your PAN and date of birth.
5. Complete KYC using the available customer details or Aadhaar-based verification.
6. Add bank details and complete payment through NetBanking, UPI, NEFT, or RTGS.

The Fixed Deposit Acknowledgement is shared after booking, while the e-FDR is generally emailed within three working days after document verification.

How to calculate your monthly income from FD?

Monthly income can be estimated using the deposit amount and the applicable monthly payout rate.

Estimated monthly interest = Deposit amount × Annual monthly payout rate ÷ 12

Suppose Kapil invests Rs. 5 lakh for 36 months at a monthly payout rate of 7.16% p.a.

These figures are before tax. The actual payment should be confirmed using the FD Calculator.

Documents required for a monthly income FD scheme

Resident Indian individuals need the following documents to book a Bajaj Finance Fixed Deposit:

• PAN
• Aadhaar card, passport, driving licence, or voter ID for KYC
• Bank account details

• Registered mobile number

  
  

Available information may also be fetched through registered KYC records during the online application process.

Need flexibility? Choose your payout frequency—monthly, quarterly, half-yearly, or yearly with Bajaj Finance FDs. Check out latest rates (up to 8.15% p.a.).

What are the returns in a non-cumulative FD?

Returns depend on the investment amount, tenure, investor category, payout frequency, and interest rate applicable when the deposit is booked. Non-cumulative payout rates are generally lower than corresponding maturity rates because interest is distributed periodically instead of remaining invested for compounding.

FD rates for customers below the age of 60

Bajaj Finance Fixed Deposit rates for customers below 60 apply to deposits between Rs. 15,000 and Rs. 3 crore.

The following FD interest rates are effective from 1 May 2026 and may change for new bookings.

Non-senior citizens

Senior citizens can receive up to 0.40% p.a. additional interest, with cumulative rates reaching 8.15% p.a. for eligible tenures.

Eligibility Criteria for Non-Cumulative FD

Eligibility for cumulative and non-cumulative Bajaj Finance Fixed Deposit options remains the same, while payout frequency determines interest distribution schedules.

• Resident Indians can book a Bajaj Finance Fixed Deposit, including senior citizens aged 60 years or above, subject to verification.
• Applicants must provide PAN and one valid KYC document, including an Aadhaar card, passport, driving licence, or voter identification card.
• Where available, documents may also be fetched from registered KYC records, simplifying verification for eligible applicants during the booking journey.

• Bank details are required during booking and payment, but they are not listed as a KYC document for eligibility purposes.

  
  

Non-cumulative Bajaj Finance Fixed Deposit offers assured periodic returns unaffected by market movements, with premature withdrawals subject to applicable conditions.

Conclusion

A Fixed Deposit Monthly Income Scheme provides assured monthly interest while returning the invested principal after the selected tenure ends. Bajaj Finance Fixed Deposit offers tenures from 12 to 60 months, multiple payout choices, and rates up to 8.15% p.a. for senior citizens. Before investing, compare the monthly payout with expected expenses, tax liability, inflation, and liquidity requirements using the FD Calculator.

Calculate your expected investment returns with the help of our investment calculators