Investment Tips: Invest money once in this bank scheme, you will earn bumper income every month sitting at home...


Fixed Deposit is the most popular investment medium in India. Fixed deposit schemes of banks are considered better for safe investment and guaranteed returns. By investing in the FD scheme in banks, you get money on maturity at a fixed interest rate. But do you know that you can also earn every month from a fixed deposit? Just as you get money every month by doing a job, in the same way, you can earn every month in this FD scheme of the bank. Its name is fixed deposit monthly income plan.


What is this monthly income plan?
There are 2 options in the FD scheme. The first option is Cumulative FD, where on maturity the amount is received by adding both principal and interest. Whereas in the Non-Cumulative FD scheme, the regular payout is done at a fixed interval. While applying, you can choose the option of monthly, quarterly, half-yearly, and annual payout. On choosing the monthly option, the amount keeps coming into the account every month.

Features of FD monthly income plan

1. There is no processing fee to start this scheme.

2. Any amount can be deposited in the FD Monthly Income Scheme from a minimum of Rs 1000 to a maximum.

3. Despite market fluctuations, investors get monthly returns as per the fixed interest, which means it is completely safe.

4. A loan facility is also available against the Fixed Deposit Monthly Income Scheme. Investors can take loans against their deposits.

5. To meet his financial needs, the investor can withdraw his cash at any time by completing a prescribed formality.

Beneficial for this category of people
Fixed Deposit Monthly Income is a better option for senior citizens who can earn monthly income on their deposits while keeping them safe. 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.


Tax rules
If you invest in a tax saver fixed deposit account, you can avail tax exemption on the amount up to Rs 1,50,000 in a financial year under Section 80C of the Income Tax Act. If the monthly income or return in a financial year is more than Rs 40,000 then the bank deducts 10% TDS. In case of senior citizens, this amount is Rs 50,000.
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