The monthly fixed deposit plan can be a fantastic choice for those who value stability and consistency in their finances. If you have a sum of money, for instance, one lakh rupees, and you’re looking for a way to turn it into a reliable source of income, this may be just what you need. Unlike other investment options that might yield returns only at maturity, a fixed deposit monthly interest payout can provide you with a steady stream of cash every month.
This plan is especially popular among retirees who might be depending on savings to cover day-to-day expenses. It’s a way to ensure that you have some funds coming in regularly without needing to worry about market fluctuations that you might experience with stocks or mutual funds.
On the other hand, P2P investment gives 13% returns annually. Planning for retirement means looking at different ways to grow your money. Peer-to-peer lending is an excellent option. It provides an instant lending option to individuals with the potential for larger returns.
Calculate Your Monthly Interest:
So, how much can you expect to earn in terms of monthly interest on a 1 lakh fixed deposit? The rate of interest varies from bank to bank, and it can fluctuate based on current financial conditions.
Let’s assume the interest rate is 6% per annum—this means you will earn 6,000 rupees for the year if you invest one lakh.
To find out the monthly interest, simply divide the annual interest by 12.
Annual Interest: ₹6,000
Monthly Interest: ₹6,000 ÷ 12 = ₹500
So, on a fixed deposit of one lakh at an interest rate of 6%, you would receive INR 500 every month.
This income can be quite handy, helping you cover bills or treat yourself to something nice each month.
How Monthly Fixed Deposits Work
Understanding how these investment plans work can help you make informed decisions. Here’s a simple breakdown of the process:
Investment Process:
Selection and Investment: You choose a bank or financial institution that offers FDs with monthly payout options, then deposit your surplus funds.
Interest Rate: The bank will offer a fixed interest rate, which is typically higher than a regular savings account. This is the amount you earn monthly based on your investment.
Payout: Each month, you’ll receive your interest as a cash payout directly to your bank account, providing you with that reliable monthly income you need.
Monthly Interest on 1 lakh fixed deposits:
The following shows how monthly income and interest on a Rs 1alkh FD, with interest rates ranging from 3% to 8.50% p.a., can be calculated.
| Total Amount ₹ | Interest Rate (%) | Monthly Interest (₹) |
| 1 lakh | 3.0 | 250 |
| 1 lakh | 3.5 | 292 |
| 1 lakh | 4.0 | 333 |
| 1 lakh | 4.5 | 375 |
| 1 lakh | 5.0 | 417 |
| 1 lakh | 5.5 | 458 |
| 1 lakh | 6.0 | 500 |
| 1 lakh | 7.0 | 583 |
| 1 lakh | 7.5 | 625 |
| 1 lakh | 8.0 | 667 |
| 1 lakh | 8.5 | 708 |
This type of investment is particularly attractive to those who require a small cash flow. It allows you to manage your financial situation without the stress of dipping into your savings.
Why Choose P2P for Monthly Income?
Peer-to-peer (P2P) lending is another fantastic option to consider for regular income generation. Here’s why it might be right for you:
Attractive Returns:
Investing in P2P platforms can yield higher returns of up to 13% p.a.* than traditional bank fixed deposits. While these come with a little higher risk, the benefits can outweigh these concerns depending on the platform and your risk tolerance.
Flexible Investment Options:
P2P lending platforms allow you to choose the types of loans that align with your interests. Whether you prefer funding personal loans, student loans, or small business ventures, you can tailor your investments according to your preferences.
Community Impact:
By choosing P2P lending, you’re not just making money; you’re also helping individuals and small businesses achieve their goals. It’s a win-win situation – you earn income while supporting others.
Diversification:
Investing in P2P loans also gives you the opportunity to diversify your assets, which means it can be less risky than putting all your money into a single investment type.
| Aspect | Monexo | Fixed Deposits |
| Typical Annual Returns | Upto 13% | 3% – 7.5% |
| Risk Level | Moderate | Low |
| Minimum Investment | Starting from 10,000 | ₹1,000 – ₹10,000 |
| Maximum Investment | 50,00,000 | No limit typically |
| Regulation | RBI regulated | RBI regulated |
| Tenure | 6 – 36 months | 7days – 10years |
Conclusion:
Choosing a monthly fixed deposit plan, as well as considering P2P lending, can provide the regular income you need to meet your expenses comfortably. Compared to fixed deposits P2P offers greater profits at a modest risk. Start your investing now with Monexo, an RBI-regulated company that yields returns of 13% annually, which is twice the return on a fixed deposit. Therefore, making wise choices is preferable when you want to live a prosperous life
FAQ:
What is p2p lending and how does it relate to Monthly Fixed Deposit Plans?
P2P lending is a form of lending that connects borrowers with investors through online platforms. Monthly Fixed Deposit Plans are a type of investment where a fixed amount is deposited each month for a set period of time, typically with a fixed interest rate. P2P lending can be used as an alternative investment option for those looking to diversify their portfolio beyond traditional FDs.
How does the FD interest rate compare to potential returns from p2p lending?
FD interest rates are typically fixed and lower than potential returns from p2p lending, which can offer higher interest rates based on the risk profile of the borrower. However, p2p lending also carries a moderate risk of default compared to FDs, so investors should carefully consider their risk tolerance before choosing between the two options.
Can I withdraw my investment early from a p2p lending platform in a Monthly Fixed Deposit Plan?
Unlike traditional FDs, p2p lending platforms may not allow for early withdrawal of investments. Investors should carefully review the terms and conditions of the platform before investing to understand the liquidity options available.
How can I mitigate the risk of default when investing in p2p lending through a Monthly Fixed Deposit Plan?
To mitigate the risk of default when investing in p2p lending through a Monthly Fixed Deposit Plan, investors should diversify their investments across multiple loans, carefully review the creditworthiness of borrowers, and monitor their investments regularly for any signs of default.
