All fixed deposit accounts do not act as monthly income schemes that help the investor earn returns at regular intervals. Investors must opt for a particular category of FD account that facilitates an investment with monthly returns called a Cumulative Fixed Deposit account. They can receive monthly interest on FDs and gradually grow their wealth over time by opting for this type of FD account. Regardless of the category of FD that an investor wishes to invest in, they can follow the procedure outlined in this article to earn assured monthly interest pay outs.
How to earn assured monthly interest on a fixed deposit?
The procedure to earn monthly FD pay outs through one’s fixed deposit investment is a straightforward one; however, the customer must follow a specific set of steps to sign up for such a monthly income scheme:
Customers must first access their savings account through their mobile banking app:
Certain financial institutions like IndusInd Bank offer customers a quick, user-friendly app that helps them access their savings account seamlessly from the comfort of their homes. As a first step, the customer must log in to their savings account and find the FD section on their bank’s mobile app.
Next, they must fill out the FD application form:
The next step involves filling out the bank’s FD application form. IndusInd Bank customers can book an FD in three different ways – via web application, through the mobile app, and via Indus Net, the bank’s net banking portal. To book an FD through the mobile app, the customer must follow the following steps:
- Login to the mobile app by entering your mobile banking ID and choose the “deposit” option
- Click on “Create Fixed Deposit” and fill out the form
- Verify the transfer of the amount from your account after successfully submitting the form
Selecting the right payout plan is the most important step in this process:
Next, the customer must select their FD’s monthly investment plan. To receive FD returns every month, they must select a monthly pay out plan. While signing up for an FD, investors must choose how they wish to receive the interest accumulated on their FD – that is, on a monthly, quarterly, or half-yearly basis.
They must use an FD returns calculator to calculate their returns:
Before booking an FD, investors must use an FD returns calculator to have a clear estimate of their total earnings at the end of their FD’s tenure. IndusInd Bank’s FD calculator can help investors calculate their returns by filling in two fields – their investment amount and tenure. Using such a calculator can also help customers compare multiple FDs and decide on the one that best aligns with their needs.
The final step involves reviewing one’s application and submitting it:
Finally, the customer must review all the features that they have opted for in their FD investment, including the monthly interest payout, and only then submit the application form. It is advisable for the investor to have properly defined their investment goals before booking an FD with a bank. The investor must also keep reviewing their FD to ensure that it aligns with their investment goals.
Investors must, however, make certain important considerations before investing in a fixed deposit account. These considerations include – the rate of interest offered by the FD account and whether the customer finds it satisfactory, the interest payout options (that will allow the customer to earn assured monthly interest on their FD if they wish to do so) and returns at the end of the FD’s tenure (that can be calculated using an FD calculator).