Fixed deposits are considered one of the best investment options. As it is not related to the market, you get guaranteed returns and there is no risk to the principal amount. This is why it is so popular among salaried people.
In fixed deposits, an amount chosen by the applicant is deposited in the bank for a fixed amount of time also known as the tenor. At the end of the tenor, the applicant gets back the amount invested along with the interest accrued. However, the interest can also be paid quarterly or monthly as has been made possible by a number of lenders. Now which kind of option you should opt for would depend entirely on the cash flow which is to be expected, more importantly, the kind of returns which you stand to get in either case.
Also Read About: Short Term FD
In order to make this easier, most lenders including financial institutions have started providing an online FD calculator which helps calculate the interest which will be paid, be it monthly or quarterly. There is also a premature calculator in case you want to opt for a premature withdrawal. But it is always advisable not to go for premature FD withdrawal. Here's why you should say No to premature Fixed Deposit Withdrawal.
in the end, the question is which payout is better – monthly or quarterly? While the applicant stands to receive more in the case of quarterly payout, but the difference between the two is very low. The factors which should thus be considered before opting for any kind of payout are –
· The amount of money to be invested
· Whether you are a senior citizen or not
· Your expenses and the kind of cash-flow you expect
· The length of the lock-in period you wish to remain invested for

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