1. What is the Monthly Payout FD Interest Calculator?

The Monthly Payout FD Interest Calculator calculates the monthly interest payout for Fixed Deposits with SBI. It helps investors plan their monthly income from fixed deposit investments.

2. How Does the Calculator Work?

The calculator uses the formula:

Where:

• \( P \) — Principal amount (currency units)
• \( R \) — Annual interest rate (%)

Explanation: The formula calculates the monthly interest payout by converting the annual interest rate to a monthly rate and applying it to the principal amount.

3. Importance of Monthly Payout Calculation

Details: Accurate monthly payout calculation is crucial for financial planning, retirement income management, and ensuring stable monthly cash flow from fixed deposit investments.

4. Using the Calculator

Tips: Enter the principal amount in currency units and annual interest rate in percentage. All values must be valid (principal > 0, rate > 0).

5. Frequently Asked Questions (FAQ)

Q1: What is the difference between cumulative and monthly payout FD?
A: In cumulative FD, interest is compounded and paid at maturity. In monthly payout FD, interest is paid out every month.

Q2: Are there any tax implications on monthly interest payouts?
A: Yes, monthly interest payouts are taxable as per your income tax slab in the financial year they are received.

Q3: Can I change from monthly payout to cumulative option after opening FD?
A: Generally, FD terms cannot be changed after opening. You would need to break the existing FD and open a new one.

Q4: What is the minimum deposit amount for monthly payout FD in SBI?
A: SBI typically requires a minimum deposit of ₹1,000 for regular fixed deposits, but specific schemes may have different requirements.

Q5: How is TDS deducted on monthly interest payouts?
A: TDS is deducted at 10% if interest income exceeds ₹40,000 (₹50,000 for senior citizens) in a financial year, provided PAN is submitted.