A fixed deposit is one of the most popular investment instruments in India as it offers fixed returns and stability of the investment amount. The interest rate of an FD remains unaffected from the market fluctuations. Since the tenor and interest rate are fixed, you to calculate the returns of a fixed deposit without any difficulty.
However, the manual formula to calculate the interest of an FD is complicated. Also, it needs considerable time and effort to calculate the returns without any mistakes. To facilitate a smooth, error-free, and easy-to-use process for predicting the FD returns, banks and financial institutions integrate a fixed deposit calculator on their portals.
To check how to use this calculator please see the below steps:
You have to feed details like deposit amount, tenor, customer category, etc. to the FD calculator that uses an integrated program to calculate the interest and final maturity value automatically.
Entering the customer category is important because the FD rates might depend on it.
For example, Bajaj Finance offers a 0.25% extra interest rate to senior citizens and if you forget to select the right customer category then you will not be able to check the exact returns that you are eligible for.
After that, you might need to choose an FD type i.e. you can either pick a cumulative plan or choose a non-cumulative plan as per your financial requirements.
However, some FD calculators display the results for both non-cumulative and cumulative FDs at once for the tenor, amount, and customer category you submit.
The FD calculator from Bajaj Finance calculates the interest earnings and returns of both FD types simultaneously. This helps you to make the comparison between FD types easily and you can pick an FD plan that suits your investment portfolio.
After providing all these details, the FD calculator displays the interest rate, interest earnings, periodic interest payouts (for non-cumulative FDs), and maturity value.
Why should you use an FD calculator?
Parameters such as investment capital, tenor, etc. need to be analyzed carefully while investing in an FD. An FD calculator shows you whether or not a specific financier has an FD scheme that complements your financial goals and fulfills your requirements.
If your investment portfolio comprises market-linked instruments like stocks or mutual funds then a fixed deposit plan will help you to balance the risk factors to some extent. An FD calculator will let you know the amount and tenor that you must choose to cushion the risks and potential losses that you may come across after investing in money market instruments.
An FD calculator also enables you to find the highest FD rates in India. At present, Bajaj Finance FD offers an interest rate of up to 6.85% that is much higher than the current bank FD rates (currently in the range of 4%-6%).
Also, the investment procedure is hassle-free as you just need to fill an online FD form and complete the KYC online. Therefore, there is no need to step out of your house to invest in this FD scheme. Moreover, you can invest in this FD scheme without any worries as it has received high ratings from ICRA (MAAA/stable) and CRISIL (FAAA/stable) for its stability and safety.
A fixed deposit is an instrument that offers fixed returns and is risk-free as well. To estimate the returns of an FD, you can use an FD calculator that calculates the interest and returns based on the input values provided to you. It facilitates easy comparison between FD plans and you can find a high-paying FD by exploring the FD calculator of various banks and finance companies. Currently, Bajaj Finance FD is providing one of the highest FD rates in India. It is a safe investment option that provides a flexible tenor from 12 to 60 months as per your financial obligations.