I have heard about discounted rate for monthly interest pay for HDFC/ SBI. What is this discounted rate? If I deposit Rs. 2 lakhs in fixed deposit, sat at 9% then annual interest will be Rs. 18,000 and monthly will amount to Rs. 1,500. Will I get Rs. 750 as monthly interest payout or less than this amount?
In case if discounted rate, interest pay happens on monthly basis. Due to this reason the compounding interest will either be equal to or less than the annual interest. With this logic, you should get little less than Rs. 1,500.