FD Monthly Interest Calculator 2026 — Monthly Payout on Your Deposit
Use this calculator to find out how much monthly interest income your FD will generate. At 7.25% per annum, a ₹10 Lakh fixed deposit pays approximately ₹6,042 per month as interest (non-cumulative option). The monthly payout option is popular among retirees and those seeking regular income, though cumulative FDs earn more overall due to compounding.
Last updated: 24 May 2026, 10:00 AM IST
Maturity Amount
₹14.32 L
at 7.25% for 5 years (quarterly compounding)
Data Sources
- RBI — Master Direction on Interest Rates (2026) — www.rbi.org.in
- Bank Websites — Latest FD Rates (May 2026) — www.rbi.org.in
- Income Tax Act — TDS on FD Interest (2025) — incometaxindia.gov.in
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Important: This calculator provides estimates based on the inputs and assumptions you provide. Results are mathematical projections, not financial advice or recommendations. Actual outcomes will vary based on market conditions, policy changes, individual circumstances, and factors not captured by this tool. Verify all figures independently and consult qualified professionals before making financial decisions.
₹10.00 L FD — Detailed Breakdown
A retiree in Pune has ₹10 Lakh to invest and needs monthly income. With a non-cumulative FD at 7.25%, they receive approximately ₹6,042 per month (₹72,504/year). Over 5 years, they receive a total of ₹3.63 L in interest payouts. Had they chosen a cumulative FD instead, the maturity would be ₹14.32 L — earning ₹69,741 more due to compounding. The trade-off is clear: cumulative for wealth building, non-cumulative for income. For retirees, a laddered strategy works well: split the corpus into 12 monthly FDs of equal amounts, each starting one month apart, so one FD matures every month for liquidity. TDS applies if total annual interest exceeds ₹50,000 (senior citizen threshold).
NISM XIX-C certified · Partner, Tykhe Ventures (SEBI AIF Cat II) · Founder, RupayWise
Ganesh Kompella is NISM Series XIX-C certified — the certification for Alternative Investment Fund managers — and a Partner at Tykhe Ventures, a SEBI-registered Category II AIF (~$20 M AUM). He's a self-taught engineer who built RupayWise and its 230+-test calculation engine because India's finance tools were built to sell products, not to help you decide. RupayWise is an educational platform — not a SEBI-registered Investment Adviser.
Frequently Asked Questions
How is monthly interest on FD calculated?
Monthly interest = (Principal × Rate) / 12. For a non-cumulative FD at 7.25%, ₹10 Lakh gives ₹6,042/month. This is simple interest — cumulative FDs use compound interest and pay more overall.
Is monthly payout FD better than cumulative?
Cumulative FDs earn more due to compounding. Monthly payout is only better if you need regular income (e.g., retirees). For wealth building, always choose cumulative.
Which bank gives the best monthly payout FD rate?
IDFC FIRST and IndusInd Bank offer 7.25–7.75% on non-cumulative FDs. Post Office TD at 7.50% is also competitive and government-guaranteed.
Is TDS deducted on monthly interest FD?
Yes, TDS at 10% applies when annual FD interest exceeds ₹40,000 (₹50,000 for seniors). TDS is deducted from each payout proportionally.
Can I change from cumulative to monthly payout FD?
Most banks don't allow switching mid-tenure. You would need to prematurely close and re-open. Some banks like HDFC offer sweep-in FDs with flexible payout options.
Compare Other FD Options
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Disclaimer: This calculator provides estimates based on the interest rates and tenure shown. Actual maturity may vary based on the bank's specific compounding method and any rate revisions during the tenure. Bank rates are sourced from public data and may not reflect the latest changes — always confirm with your bank before investing. TDS is deducted at source if applicable. This is not financial advice. RupayWise is not a deposit broker or financial advisor.