New Delhi, May 9 -- Fixed deposits remain one of the most preferred investment options for people looking for stable and predictable income. Many retirees and conservative investor rely on ban FDs to generate a regular monthly cash flow without exposing their savings to market-linked risks.

If you want to generate a monthly income of Rs.10,000 from your fixed deposits, the total interest earned in a year should amount to Rs.1,20,000. Most banks offer different interest payout options on FDs, including monthly, quarterly, half-yearly, or annual payouts.

In non-cumulative fixed deposits, the interest is paid out periodically instead of being reinvested with the principal amount. At the same time, the principal remains also intact while in...