Fixed Deposit Monthly Income Plan– You all must have heard about FD but we are going to tell you about such FD from which you can withdraw money every month. With this your hand will never get tight. Let us know about it…
Fixed Deposit is considered to be the safest and simplest way of investment in India. It is a popular savings scheme because of the guarantee of returns and the risk of losing money is negligible. But, do you know that you can earn every month from fixed deposit also.
If you also want the bank to give you interest on the FD amount every month, quarter or half year to meet your essential expenses, then this is possible. Actually, if you invest your money in Non-Cumulative FD, then money will keep coming into your hands after some time.
There are two types of fixed deposits – cumulative FD and non-cumulative FD. Actually, both these types of FD differ on the basis of interest payment. The first option is the cumulative scheme, where on maturity the amount is received by adding both principal and interest. Whereas in non-cumulative scheme, you can decide whether you want interest on monthly, quarterly, half-yearly or yearly basis.
Get more liquidity –
Non-cumulative FD is offered by many banks including SBI and ICICI. The thing to note here is that non-cumulative FD offers slightly less interest as compared to cumulative FD. Here the benefit of compounding is also not available, because interest is withdrawn at certain intervals. But, its advantage is that you have money in your hand all the time. Loan facility is also available against non-cumulative fixed deposits. Besides, there is no investment limit in this.
Who is it right for?
Non-cumulative fixed deposits are suitable for those people who do not have any other source of income apart from the deposited capital or their work is not supported by the income from other sources.
If they invest their savings in cumulative FD, they will not get continuous money and will get the money only on maturity. At the same time, in non-cumulative FD, their money will also be safe, they will get returns and they will also keep getting money in their hands in the form of interest every month or three months.
