Can I withdraw interest earned from fixed deposits?
Let's say I have one million dollars and put them in the bank for fixed deposit for 5 years. And let's say that the monthly interest earned on that amount is $2000.00. Can I withdraw $2000.00 every single month and enjoy life with that money?
- InspectorBudgetLv 79 years agoFavorite Answer
Yes, there is usually no issue with your taking out the accumulated interest. Some small banks, like certain community banks or Credit Unions, may have different policies - and you should always check first.
If the interest rate of your fixed deposit is higher than open market rates, however, it would be better to leave the interest in the account, as it will earn interest at the high rate.
- Go with the flowLv 79 years ago
Suppose you buy certificates of deposits that pay out monthly. (brokerage account)
The interest goes right into your account as cash.
This is how some older people create their own annuities without paying anyone a red cent.
Also credit unions pay monthly on cd's. You can choose for the monthly payouts to go directly to a savings or a checking.
Don't know about regular bank cd's since they have so many tricks up their sleeves these days.
- Anonymous9 years ago
Yes but not sure about it but I think it is better to contact banks executive or financial advisor they will suggest better because every bank and financial institute norms are different.Source(s): http://www.ufxbank.com/