As a working professional or business owner, building a sizable corpus is crucial for financial security.

By investing a sum like Rs. 10,000 in a fixed deposit (FD), you can benefit from regular interest payouts, turning your idle funds into a reliable income stream. Fixed deposits are a popular choice due to their stability and the attractive interest rates they offer, which can help you earn a consistent monthly return on your investment.

Investors seeking regular monthly income can benefit from non-cumulative fixed deposits, where interest is paid out at regular intervals. With a Rs. 10,000 FD, you can expect a modest yet steady interest income, which varies depending on the interest rate offered by the bank or financial institution.

Investors who wish to earn a regular income from their savings often opt for fixed deposits, where interest can be paid out monthly.

A Rs. 10,000 deposit in an FD allows you to receive consistent interest payouts based on the tenure and interest rate offered by the financial institution. The table below illustrates the potential interest earnings you can expect from a Rs. 10,000 FD over different tenures.

To book a Fixed Deposit (FD), you’ll typically need proof of identity, proof of address, passport-sized photographs, PAN card, and existing bank account details. Senior citizens may require proof of age.

Please note that the documents required for booking a Fixed Deposit may vary depending on the financial institution. It is advisable to check with your bank for specific requirements.
 

Reinvestment or cumulative FD

Reinvestment or cumulative fixed deposits are popular among those who prefer to receive their interest earnings at maturity rather than periodically. This option allows the interest to be compounded annually, enhancing the total returns over the deposit period. It's particularly beneficial for long-term investments, as the power of compounding can significantly increase the final payout.
 

Conclusion

Investing in a fixed deposit of Rs. 10,000 is a secure and reliable option for both senior citizens and individuals aged below 60. With varying interest rates and the option to reinvest, you can select a tenure that aligns with your financial goals and maximise your returns. For precise calculations, you can use a Bajaj Finance fixed deposit interest calculator to estimate your earnings based on different tenures and interest rates.