🟧 FD Monthly Income & Cumulative Calculator — Full Guide + Top Rates

Use this tool to estimate monthly payouts, maturity value of cumulative FDs, tax-adjusted returns and effective yields. Then check which banks/NBFCs are offering good FD interest rates right now and how to pick the best.

1. What this Tool Does

Your calculator supports two modes:

• Monthly Interest FD: You receive interest periodically (monthly, quarterly, etc.), principal returned at maturity.

• Cumulative FD: Interest is reinvested (compounded) and you withdraw the full amount at maturity.
  It also adjusts for your personal tax rate on interest, and computes effective annual yield (pre-tax and post-tax).
  This gives you a clear, transparent view of what you actually earn rather than just seeing a headline interest rate.

2. How to Use the Calculator

🛠 Inputs:

• FD Amount (Principal)

• Annual Interest Rate (%)

• Tenure (Years + Extra Months)

• FD Type (Monthly Interest or Cumulative)

• Compounding Frequency (for cumulative mode)

• Tax Rate on Interest (%)

• Payout Frequency (for monthly interest mode)

📊 Outputs:

• Monthly Income (Pre-tax & Post-tax)

• Annual Interest & Total Interest Over Tenure

• Maturity Amount (especially for cumulative mode)

• Pre-tax Effective Yield (%)

• Post-tax Effective Yield (%)

• Approximate CAGR (compounded mode)

So go ahead and use the below FD calculator and find out how much you can earn every month by making a fixed deposit.

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FD vs RD Calculator (Fixed Deposit vs Recurring Deposit Returns)

FD vs Debt Mutual Fund Comparison Calculator – Which Investment Is Better?

3. Why This Matters: Monthly vs Cumulative FD

• Monthly Interest FD: Good for regular cash flow (e.g., retirees). With a fixed rate, you know your monthly income.

• Cumulative FD: Better for wealth accumulation. Though you don’t get periodic payouts, your money grows via compounding → you often end up with a larger corpus over time.

• Choosing between them depends on your goal: income now vs corpus later.

4. Understanding Effective Yield & Tax Impact

• The “headline rate” (e.g., 7 % p.a.) isn’t enough: what matters is what you actually receive, after tax and compounding.

• Pre-tax effective yield = annual interest ÷ principal (for monthly mode) or growth rate implied (for cumulative).

• Post-tax effective yield = what remains after your tax slab on interest.

• Always use the tax input so you see your realistic returns.

5. Top FD Rates in India – Banks & NBFCs (As of latest publicly-available data)

🏦 Banks

Here are some of the banks offering competitive FD rates:

• Suryoday Small Finance Bank: ~8.05 % p.a. on certain tenures.

• Jana Small Finance Bank: ~8.00 % p.a. for some terms.

• IDBI Bank: Up to ~7.30% on select retail term deposits.

• Indian Bank: Example 6.70% p.a. for public category term deposit.

🏢 NBFCs / Corporate FDs

Often NBFCs offer slightly higher rates but with somewhat higher risk:

• Muthoot Capital Services Limited: Up to ~9.10% p.a. for 36-month tenure in some cases.

• Bajaj Finance Limited: Up to ~8.25% p.a. for some tenures.

• Shriram Finance Limited: Around ~8-8.85% p.a. reported.

6. How to Choose the Right FD Provider

Here are the criteria you should look at:

• ✅ Interest Rate: Higher is better, but compare tenures equally.

• ✅ Tenure: Shorter vs longer term may have different rates.

• ✅ Payout Frequency: Monthly/quarterly vs cumulative.

• ✅ Tax Treatment: Interest on FD is taxable under your slab (unless exempt).

• ✅ Credibility & Rating: Banks have stronger safeguards; NBFCs often higher rate but check rating.

• ✅ Premature Withdrawal Rules: Are they tough or penalising?

• ✅ Senior Citizen Benefits: Many institutions give additional interest for senior citizens.

• ✅ Effective Yield: Use your calculator to compare apples-to-apples (factoring payout frequency + tax)

7. Sample Use Cases

Example A – Monthly Income

You invest ₹10 lakh at 7% for 5 yrs 5 mths, monthly payout:
→ Monthly income ≈ ₹5,833 (pre-tax)
→ If you pay tax at say 30%, post-tax monthly ~₹4,083

Example B – Wealth Accumulation (Cumulative)

Same ₹10 lakh at 7% for 5 yrs 5 mths, interest reinvested quarterly:
→ Maturity ~₹14.56 lakh
→ CAGR ~7.19%
→ Post-tax effective yield (if tax = 10%) ~7.58%

Frequently Asked Questions (FAQ)

Q1. Can I withdraw cumulative FD interest periodically?
A1. No — by design cumulative FD reinvests interest. If you want regular income then choose monthly interest mode.

Q2. Is FD interest taxable?
A2. Yes — interest earned on FDs is added to your taxable income. Use the calculator’s tax input to estimate your post-tax return.

Q3. Which is better: monthly interest or cumulative FD?
A3. Depends on your goal: regular income vs corpus growth. Use the calculator to compare both modes with your numbers.

Q4. Do NBFC FDs carry more risk than bank FDs?
A4. Generally yes — banks are better regulated and belong to deposit insurance schemes (in many cases). Always check the institution’s rating and T&Cs.

Q5. What is effective yield?
A5. Effective yield shows your real annual return after factoring in payout timing, compounding, and tax — it gives a clearer comparison than just “interest rate”.

Conclusion

Using the calculator above + the rate references above gives you a powerful one-two punch:

• Understand exactly how much your FD investment will earn (monthly or at maturity)

• Compare across providers using realistic numbers

• Make a well-informed FD choice rather than relying solely on headline rates

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Note: Please do your own research and make investment. Moneycontain will not be responsible for any of your losses at all. The point made is for educational purpose only and intended to give information. All investments are subject to risks, which should be considered prior to making any investments.

✅ Disclaimer

The interest rates cited above are indicative and subject to change. They are based on publicly available data at the time of writing. Please verify the current rates, tenure-specific rules, withdrawal terms, and institution rating before investing. This page is for educational purposes only and does not constitute financial advice. Your investment decision should be based on your independent assessment of risk, liquidity needs, tax implications, and institution credibility.