A fixed deposit (FD) is a financial instrument offered by different financial institutions where an individual deposits a lump sum amount for a predetermined period, ranging from a few days to years. In exchange, investors receive a predetermined interest rate on their deposit, which is typically higher than that of a savings account. The principal amount and interest are disbursed periodically or upon maturity, depending on the FD type. Known for their assured returns, FDs are favored by those seeking a dependable method to increase their savings.
Types of FD
- Cumulative FD: In a cumulative fixed deposit, the interest earned on the deposit is reinvested in the FD periodically, along with the principal amount. This means that at the time of maturity, the investor receives the cumulated interest along with a principal amount. Cumulative FDs are generally suitable for long terms investors, who want to build long term wealth.
- Non-Cumulative FD: In contrast, non-cumulative fixed deposits offer periodic interest payouts. The investor can choose the payout option, such as monthly, quarterly, half yearly or annually, to receive the interest earned on their deposit. Non-Cumulative FDs are suitable for those looking for a regular source of income.
Monthly Interest Payout on Rs. 80 Lakh Fixed Deposit (FD)
Calculating monthly interest on FD
Amount |
Interest rate (p.a.) |
Interest per year |
Monthly |
Rs. 80,00,000 |
6% |
Rs. 4,80,000.00 |
Rs. 40,000.00 |
Rs. 80,00,000 |
6.50% |
Rs. 5,20,000.00 |
Rs. 43,333.33 |
Rs. 80,00,000 |
7% |
Rs. 5,60,000.00 |
Rs. 46,666.67 |
Rs. 80,00,000 |
7.50% |
Rs. 6,00,000.00 |
Rs. 50,000.00 |
Rs. 80,00,000 |
8% |
Rs. 6,40,000.00 |
Rs. 53,333.33 |
Rs. 80,00,000 |
8.50% |
Rs. 6,80,000.00 |
Rs. 56,666.67 |
Rs. 80,00,000 |
9% |
Rs. 7,20,000.00 |
Rs. 60,000.00 |
Rs. 80,00,000 |
9.50% |
Rs. 7,60,000.00 |
Rs. 63,333.33 |
Rs. 80,00,000 |
10.00% |
Rs. 8,00,000.00 |
Rs. 66,666.67 |
Calculate interest rate on FD using Fixed Deposit Calculator.
