Work out fd interest payout instantly with clear inputs, formula shown and shareable results.
A payout deposit hands interest over as it is earned rather than reinvesting it. The income is predictable, but over the term you forgo the compounding a cumulative deposit would have produced — the cost of the cash flow.
Payout interest
Per payout = P × i / f; cumulative forgone = P[(1+i/f)^(ft) - 1] - total payouts
Figures are estimates for planning only. Market returns are not guaranteed, and rates, limits and tax rules change. This is not financial or tax advice — speak to a qualified adviser before acting.
Anyone who needs the income now — retirees typically — or who can reinvest it at a better rate elsewhere.
Slightly, as banks often discount the monthly option to compensate for paying earlier.