The returns on Fixed Deposit depend upon interest rates and the frequency of interest payouts you select. Interest is compounded periodically if you have selected cumulative FDs. The manual formula is very tedious for getting an estimate of returns on FDs. Instead you should use the online FD calculator. It shows fast and accurate results for the calculation of interest and maturity amount.
How to Use an FD Calculator?
Using an online FD Maturity Calculator is a simple process. Choose a reliable FD Calculator such as the one from Bajaj Finance and select the type of customer, FD type, FD amount, and the FD tenure. After entering these details, you will get the results within a few seconds. It will show applicable interest rate, interest payout, maturity date, and maturity amount. All details in just one click. Automatically you will see these details based on the investment amount and lock-in period you chose.
You can enter different amounts, durations, and compare them to know the best-suited plan for your investment goals. You can use the Bajaj Finance FD calculator monthly interest tool to calculate the value of periodic interest payouts (monthly, quarterly, half-yearly or yearly) as well. Interest rates will be varied as per the details you enter – the type of FD, the FD tenure, the deposit amount, and your customer category. For instance, if you are a senior citizen or an online customer, you can receive additional interest rate benefit of 0.25% and 0.10% respectively on your investment.
Difference between Cumulative FD And Non-Cumulative FD
You will see two options for FD type when using the Bajaj Finance FD Calculator – the cumulative FD and the non-cumulative FDs. Your choice will determine the interest and maturity values. You should know what these schemes are.
For example, if you want a maximum return on the maturity date of your FD, you should select the cumulative FD option. And, if you need a periodic income from your investment, then go for a Non-cumulative FD.
You will have the option to receive interest periodically i.e. monthly, quarterly, half-yearly, and yearly. If you are looking for a regular income from your investment, it will be convenient for you to choose this option.
With a cumulative FD, the total interest on an FD is compounded annually and will be payable at the time of maturity. The principal amount will grow as a money multiplier scheme because of compound interest.
Factors to consider while investing in FDs
- Interest offered: Banks offer different interest rates depending on the tenor of the investment. Be sure about the tenor and then invest as the time period is an important factor to earn higher returns at the principal. Tenor options on FD are available from 7 days to 10 years.
- To earn higher returns and maximum capital protection, spread FDs across different tenor buckets and maturity timelines. You can use the multi-deposit facility from Bajaj Finance FD to invest in multiple deposits with a single payment cheque.
- Maturity dates for fixed deposits should be different as it will be helpful in liquidity management.
- Go for FDs with reputed NBFCs like Bajaj Finance for better returns as compared to bank FDs and post office FDs.
Keep in mind your needs and choose the right option for online FD accordingly. For instance, if you invest online with Bajaj Finance FD, you can earn an additional interest rate benefit of 0.10%. Also, these deposits have received FAAA/Stable rating from CRISIL and MAAA/Stable rating from ICRA. This means you are assured of timely repayment of the principal and interest amount on your FD investment.