1. What is Axis Bank FD Monthly Payout?

Axis Bank Fixed Deposit Monthly Payout option allows investors to receive interest income every month instead of waiting until maturity. This provides a regular income stream while keeping the principal amount intact.

2. How Does the Calculator Work?

The calculator uses the simple interest formula for monthly payout:

Where:

• \( P \) — Principal Amount (INR)
• \( r \) — Annual Interest Rate (%)
• \( \frac{r}{12} \) — Monthly Interest Rate

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

3. Importance of Monthly Interest Calculation

Details: Calculating monthly interest helps investors plan their cash flow, budget effectively, and make informed decisions about their fixed deposit investments with Axis Bank.

4. Using the Calculator

Tips: Enter principal amount in INR and annual interest rate in percentage. Both values must be positive numbers to get accurate monthly interest calculation.

5. Frequently Asked Questions (FAQ)

Q1: Is the monthly interest compounded?
A: No, for monthly payout FDs, interest is calculated using simple interest method and paid out monthly.

Q2: What is the minimum deposit for Axis Bank monthly payout FD?
A: Axis Bank typically requires a minimum deposit of ₹10,000 for fixed deposits with monthly payout option.

Q3: Can I withdraw my FD before maturity?
A: Yes, but premature withdrawal may attract penalties and the interest rate may be revised to the applicable rate at the time of withdrawal.

Q4: Are there tax implications on monthly interest?
A: Yes, the monthly interest income is taxable under Income Tax Act and TDS may be deducted if interest exceeds specified limits.

Q5: How does this compare to cumulative FD?
A: Monthly payout FD provides regular income but offers lower overall returns compared to cumulative FD where interest is compounded.