Many investors, especially the retired set of investors look for regular monthly income. In fact, they look for fixed deposits that offer the best interest rates on a monthly basis.
When looking for best interest rates on monthly fixed deposits, it is important to remember that all are taxable.Remember, we are not giving you monthly income plans of mutual funds. Here we are purely recommending, monthly income fixed deposits or fds.
In the case of company deposits, the TDS is cut beyond an interest earned of Rs 5,000, while in the case of bank deposits, it is cut beyond a sum of Rs 10,000.
In any case take a look at some of the best fixed deposits with monthly interest income.
DHFL Aashray Fixed Deposits for monthly income
DHFL Ashray offers an interest rate of 8.10 for 12 months on its monthly interest fixed deposits.
The Fds offer you an interest rate of 8.35 per cent for tenures ranging from 14 to 120 months.
Not bad when compared to interest rates that we currently get from banks.
Bajaj Finserv has to be among the best fixed deposits, if you are looking at monthly interest from fixed deposits.
The 12-17 months fixed deposits offer you an annual interest rate of 8.23 per cent, while 18-60 month deposit offers you an interest rate of 8.32 per cent. The interest is payable monthly.
These are AAA rated deposits, which are relatively secure, making it good Fd for monthly income.
Shriram Transport Finance Monthly Income Fds
Shriram Transport offers an interest rate of 7.95 per cent on its monthly income fixed deposits for 12 months and 8.19 per cent for two and three years. You get a monthly income interest of 8.42 per cent for five years.
Post Office Monthly Interest Income Plan
Post Office Fixed Deposits are also good for monthly income. They offer interest rate that is slightly lower than that of HDFC Monthly Income Fixed Deposit.
The interest rate at the moment is around 7.8 per cent, which is marginally lower. These are once again extremely safe deposits, as Post Office is backed by the Government of India. These are good fds for monthly income.
Federal Bank Monthly Interest Fds
Federal Bank is another bank that offers interest rates on monthly interest fixed deposits.
However, you need to check with the bank on the interest rates. This is because, interest rates vary based on the tenure and the amount.
Union Bank of India
Like Federal Bank, Union Bank also has monthly interest fixed deposits.
The interest we believe is definitely lower than that of any of the NBFCs listed above. Again, it could range in between 7.00 to 7.25 per cent. You would need to check with the bank
UCO Bank too has a monthly income plan, which you would have to check with the bank. However, we continue to recommend AAA rated company Fds because of their superior interest rates.