Fixed Deposit for Monthly Income

In these recession times, it is very important to plan spending. Every penny you spend will be important. The tough times will not be end within another couple of months, it is expected to continue for another few years at least. If you read everyday newspaper, there is millions lost job and don’t have work to do. The people who saved some money while they are in the good times will survive till they get good job. Think about those who are not planned their savings and now job less. So, it is always good to spend your money with plans. In our previous articles, we have covered about Tax Planning Tips and Investment Plans. In this article I will  be writing about the Fixed Deposit scheme for earning some extra income. This will help you to utilize your money appropriately without losing any potential income.

Don’t Use Saving Account

Most of the people keep the large amount of money in the Savings Account. Normally banks provide 3.5% for the Savings Account which very less interest rates compare to other form of investments. The savings account is only for salaried account when you keep less money in the account. The interest money will be credited to your account on the quarterly basis for all the savings account.

Fixed Deposit Interest Rates

Compare to the savings account, Fixed Deposits are providing the high rate of interest. It was very high when Dec, 2008. beginning this year, all the banks have reduced the FD interest rates to 1%-2%. But, even then it is good interest rates compare to the previous two years. So, it is wise to invest on the Fixed Deposit rather than losing money in other form of investments like Shares and Mutual Funds.

Link to Savings Account

Banks like ICICI, HDFC, etc. providing the options for creating Fixed Deposit through online. One restriction for this is, they will not give you any receipt if you are creating it through online. For example, if you have Rs.200000 in your savings account, then  it is easy for you to create FD from your savings account money. There will be option to credit your interest money like Monthly, Quartely, Half Yearly or at the time of Maturity Period. if you select any time period like monthly, you can link your savings account, so that they will credit your interest money into the savings account. This will help you to earn some extra money from your savings on the monthly basis. Below is the sample form for creating FD in ICICI net banking.

icici-fixed-deposit-savings-accountNowadays this facility is available with most of the banks which has the net banking facility.

Also Read:

Summary

I hope this article would be more useful for utilizing your money without losing any potential income. So, please don’t keep your money in your saving account, it will loss you a good interest income. If you have any doubts regarding this article, please post comments, I will reply to your comment. Thanks for reading this article. !!!

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153 Responses to “Fixed Deposit for Monthly Income”

  1. Navdeep Says:

    Hi,
    I am saving 30,000 every month, i want to invest my saving in hdfc FD.
    please advise me how can i inverst monthly on FD

    Reply

  2. Sarbajit Roy Says:

    Hello,
    I want to invest Rs. 1-2 Lakh at the rate of 9%interest in a bank.then what will be my monthly income? Suggest the bank name also.Will I have to pay TDS for monthly plan?

    Reply

  3. Javeed Says:

    I heard there is one scheme is available in the post office specific for girl child where we can invest some amount and we will get upto 5 lackhs after 18 years.
    could anyone please let me know whether such schemes available in the post office? if yes please let me know about the scheme details.

    Thanks in advance.
    Regards,
    JA

    Reply

  4. MPR Says:

    Hi Krishna,
    I live in USA and my husband passed away a month back .I am planning to move to India with my minor son. I am a home maker and don’t go to work. Could you please advice me how to invest my money so that I don’t lose them in tax as I have to transfer more than 40 lakhs to my Indian account ? I would appreciate if you could take your time to help me with this info.Thanks.

    Reply

  5. Vipin Says:

    Hello Krishna,

    Thanks for your wonderful advice.

    I have few queries here, would be great if you can give your kind advice .

    1- I am a salaried person , presently working in Africa and my quaterly saving is Rs 200,000 in my NRE account ( HDFC bank ) in India. I get an interest of approx 3.5% on my amount.

    A: I want to invest Rs 200,000 on every quater , what would be better : F.D, Shares, Mutual funds. Plz give the reason of your selected choice.

    B: I have my demat account in ICICI bank whwrein I have the shares of worth Rs 5 lacs. If I sell these shares and earn some profit , shoul I pay the income tax and if yes then How. Presntly I have also lost my PAN CARD.

    C: I also want to invest some money on my wife’s name so that she can take care of all her expenses, how much amount will i have to invest to get Rs 5-7000 /month. which bank ?

    Regards
    Vipin.

    Reply

  6. Deb Says:

    Hi Krishna,

    I have opened two term deposit(3months) ac in SBI for RS 40000 and RS 20000.

    For the above two term deposit how much tax bank will deduct.

    I have not submited my Pan no.

    Regards,
    Deb

    Reply

  7. Manoj Singh Says:

    Dear Sir,
    I have a sum of Rs:3 lacs and I have to make an FD of it, So, It is better to make a F.D of 1 years & get monthly interest income, would be there any difference in the F D Rate for yearly & monthly interest. kindly suggest me what to do ?

    Reply

  8. fayaz Says:

    I have a sum of Rs:2 lacs and I have to make an FD of it, So, It is better to make a F.D of 1 years & get monthly interest income, would be there any difference in the F D Rate for yearly & monthly interest. kindly suggest me what to do ?

    Reply

  9. raja ghosh Says:

    sir, please let me advice if i hv 100000.00 invest in sbi for 5 yrs or 1 yrs how much interest earn monthly wise. Pls reply by me mail.

    Reply

  10. vilas lengare Says:

    please clarify monthy small investment plan.

    vilas
    8291446946

    Reply

  11. DHARMENDRA KUMAR SAHOO Says:

    Respected sir,
    I want to open an account in SBI.So pls guide me about the investment of monthly scheme(for 10 years)

    yours faithfully
    dharmendra kumar sahoo

    Reply

  12. Dominic Says:

    Dear krishna

    I want to invest 4000 rs on a monthly basis. For what should i go for which will give me high returns. Peroid will be 6months to 12

    Reply

  13. vishal Says:

    pls be kind to help me i have 10laks and this the only amount i am going to get my wife is in job with 6500 per month i will also join some job but wont get more yhen 8 or 10 thousend…. i want to invest my 10 lakhs with 2 name me and my wife so that we can get good monthly income (i am looking for safe investment like post but some more interest then post)

    Reply

  14. vishal Says:

    i want to invest 10lakhs but i want good interest on monthly basis for 1 month or 3 month so should i go for post off… or banks… how much interest will i get & which plan if in post, which bank? what intreast

    Reply

  15. shakti rana Says:

    sir , i want to know that i have nade up two fd’s of 50,000/= each in july.2011, but they will be matured in july 2012. and i want to open one more new fd of rs. 50,000/= now . and i doesn’t hold a pan card also.
    so i want to know that you are telling me that if interest paid by bank is more than rs 10,000 then tds is deducatble.

    so rs. 10,000/= from all fd’s and saving a/c or on only 1 f.d

    Reply

  16. Krishna Says:

    Hi Krishna,
    I want to invest 3 lakhs in a Bank. if i deposit what will be the income? pls guide me.. my number is 9677089814.. thanks

    Reply

  17. BHARAT Says:

    Hi Krishna,
    I want to invest 3 lakhs in a Bank. if i deposit what will be the income? pls guide me.. my number is 9015341941.. thanks

    Reply

  18. SAMI Says:

    HELLO SIR .I WANT TO INVEST 500000 in POST OFFICE MIS . PLS GUIDE ME

    Reply

  19. srikanth Says:

    i want invest 300000, i required montly returns
    kindly suggest the best plan

    Reply

  20. aseem sharma Says:

    i want to invest 15 lac which is best fixed deposit or monthly income plan

    Reply

  21. Ravi Says:

    Hi

    Hi everyone good to see that u guys r interested in FD.Better invest in our bank we provide 12% rate of interest for yearly scheme and monthly
    scheme(Bangalore). For Retired and Senior citizens we provide upto 13% rate of interest. If your interested quickly mail to me. [email protected].
    We do have 24 carrot Gold coins with affordable prices. This month we do have offer called as monsoon bonanza. Many business guys have invested in our Bank. If your interested in monthly interest scheme you can go for monthly or if you interested in yearly u can choose yearly.
    Ex 50,000 = yearly interest 5000
    1,00,000 = 12% is 12000
    2,00,000 = For 2 lach 12+12=24 interested Rate. For each lakh 12% rate of interest. For 2 Lakhs yearly interest will be 24000

    Regards
    Ravi

    Reply

  22. Uttam Says:

    Suggest me by example, which Monthly Income Plan be better?

    Reply

  23. Uttam Says:

    Hi Ravi!
    Can u pls illastrate me what will be both Monthly Income Plan and Fixed deposite plan for Rs. One Lakh each. Mail “[email protected]

    Reply

  24. I.R.S.Reddy Says:

    sir,I want to invest 8 lakhs in Bank,and I want to take a monthly incom.Please guide me….,Thank you sir.

    Reply

  25. Dinesh Says:

    Dear Krishna

    I want to invest 5000 Rs on a monthly basis. For what should i go for
    which will give me high returns. Period will be 6months to 24.

    Reply

  26. G.SURENDAR REDDY Says:

    Sir,

    This is G.Surendar Reddy, I would like to invest for Rs.3,00,000/- in SBI and I am very much in need to get monthly income in return. What are the laid down procedures in this regard, whom should I contact and what kind of documents to submit ? What is the lock in period for pre-mature taking of principle amount. Please explain in all details so that I should go ahead properly. With kind regards,

    Reply

  27. Tania Says:

    Sir, I want to do fixed deposit of Rs 4 Lacs with SBI for the purpose of monthly retunr /income. Can you please advise if this is possible- How can i go ahead. (Post office – im not interested)- thanks and regards

    Reply

  28. Ravi kumar Says:

    Hi

    Hi This is ravi Kumar . You guys could make even fixed deposit in Muthoot Finance. Where you will be getting upto 13%.

    Schems are 1 year 1 day – 11.5% — if you make FD Of 1 00 000 you will get 11500 for a year. you will make Fd of 2 00 000 you will get 23000 for a year.

    we do have doubling bond also for 5 and half year(i.e 66 months) where rate of interest is 18.18%
    if you Make FD for 1 00 000. you will get 2 00 000 after 5 and half years . what ever amount you Make FD You will get double . only after 5 and half year. No premature in this case. if you want more infomation regarding this kindly mail me [email protected]
    [email protected]

    Reply

  29. Recommended Looking at Says:

    I always used to read paragraph in news papers but now as I am a user of net thus from now I am using net
    for articles, thanks to web.

    Reply

  30. ranjay kumar singh Says:

    i have 50000/-rupees & i want fix it so plz provide me feedback about in which plans i get better profit in monthly basis or yearly basis.
    my cell no-09724657509 & my mail id([email protected])

    Reply

Trackbacks/Pingbacks

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    [...] Another good source for the tax savings is the Fixed Deposit scheme. from 2006, the government has extended the tax benefits as five-year fixed deposit schemes.  In the existing the provision, you are eligible to claim the tax benefits up to Rs.100000. But, with the tax saver fixed deposit you cannot apply for the loan against fixed deposit. The interest rates on fixed deposit is decreasing rapidly, it may touch the 7% per anum mark with in next few months. It was golden time when the fixed deposit rate is above 10%. I have written a detailed article on how to start the fixed deposit for tax savings. [...]

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