If you are looking to diversify your portfolio through the addition of long term investments to it, you might consider investing in a fixed deposit (FD) scheme. Offered by a number of banks and other financial institutions, a fixed deposit scheme allows customers to lock in a certain amount of money for a predetermined duration, which will accrue a certain rate of interest over time. Fixed deposit investments offer investors a number of advantages. Due to the returns being guaranteed by the institution issuing the scheme, the investment offers relatively lower risk compared to other investments such as stocks or even mutual funds. In addition, FDs offer higher interest rates (you can calculate your returns via a fd calculator) than keeping your money in a regular savings bank account. For active investors and those looking to invest their salary as well, FDs are often the investment of choice.
When you invest in FDs, a monthly payout FD will allow you to claim monthly or quarterly interest payments. You can also opt for a reinvestment option which automatically reinvests the interest you earn into your FD. This amount then also begins collecting interest, and the complete amount is handed over to the investor at the maturity date of the FD.
How to calculate monthly FD interest.
If you are looking to choose between a reinvestment option and a monthly payout FD or quarterly payout fd, you might want to calculate the amount of interest you will earn based on your principal amount and the duration of your FD. FD interest rates often lie around the 6% to 8% mark.
Monthly interest can easily be evaluated with a fd calculator monthly interest. Let’s assume, that you opt for a scheme that compounds quarterly, If your investment amount is 10 lakhs, and the interest rate afforded to you is 8%, then the interest you will earn per quarter will stand at Rs. 20,000 (2%). Thus if you opt for a monthly payout FD, you would be receiving Rs. 20,000 every three months as an interest payment on your investment.
Conclusion
If you are looking to calculate your monthly and quarterly interest payments you would get from a monthly payout FD or reinvestment scheme FD, you could avail of the number of FD interest calculators available online. Finserv MARKETS offers a number of FD schemes from a list of companies, allowing users to compare interest rate and pick a monthly interest FD or long term FD of their choice. Visit the Finserv MARKETS website to choose the best FD scheme for you.
