I booked FD with an option of quarterly payout. That means I will get interest every quarter, right?
Hey Gopal, A quarterly payout fixed deposit (FD) is one of my favourite investment options when I want regular income. Instead of waiting till maturity, the bank credits the interest I earn every three months directly to my account. It’s simple, steady, and perfect for anyone who prefers a regular income.
When I open a quarterly payout FD, I choose the deposit amount and tenure. The bank pays me the accumulated interest every quarter. My principal remains untouched until the end of the term.
I find this type of FD ideal for retirees or anyone who wants a consistent cash flow. It feels like earning a small salary from my savings, without worrying about market ups and downs.
These are some major highlights of a quarterly payout FD:
- Regular Income: Interest gets credited every quarter.
- Safe Investment: Backed by the bank, it carries minimal risk.
- No Market Dependency: Returns don’t fluctuate with market conditions.
The only thing to remember is that since you get the interest regularly, it doesn’t compound like a cumulative FD. So, if you are aiming for long-term growth, this option won’t suit you.
Personally, I see quarterly payout FDs as a great way to balance stability and income. They bring peace of mind. And a little extra money in the bank every few months never hurts.