How is the Monthly Interest Calculated on Standard Fixed Deposit?

Fixed deposits are one of the safest, low-risk investments options that provides assured high returns. Before investing on a fixed deposit scheme, the investor should check out the maturity amount on disbursement. The monthly interest on standard fixed deposit can be calculated with the fixed deposit calculator.

There are two types of fixed deposits- cumulative and non-cumulative. In a cumulative fixed deposit, the principal sum is locked down and the total amount is disbursed only at the end of the maturity period. In non-cumulative fixed deposits, interest is calculated monthly, quarterly, half yearly or yearly as chosen by the account holder. 

The monthly interest rate can be easily calculated using an online tool called the FD interest calculator. Disbursals can be customised as per these timelines by the investor.

Computation of the monthly interest on standard fixed deposit can be done easily by entering some simple information like the type of customer; the type of fixed deposit scheme (cumulative or non-cumulative) and the investment amount and tenor period.

Other advantages of FD include flexible tenor period and low deposit amount. Apart from Individuals residing in India and NRIs, companies, partnership firms and registered societies are also eligible to open a FD account. Documents required to open an FD account are KYC and PAN.