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A fixed deposit is the safest avenue of investment at any point in time as it gives guaranteed returns irrespective of market fluctuations. In the current times of uncertainty, you might want to park your money in a savings or recurring deposit account but both have shortcomings when compared to an FD.
A savings account is more suitable for frequent withdrawals to meet your routine expenses. As far as the difference between RD and FD is concerned, the former does not allow you to make a lumpsum investment. Most importantly, both savings and RD accounts fetch less interest than an FD. There are several financial institutions like Bajaj Finance which offer an interest rate of up to 7.35%, one of the highest in the market and certainly way more than savings or RD account.
If you still have apprehensions about FD investment, you should use the FD interest calculator to make the right decision.
What is an FD Calculator?
An FD calculator is an online tool that automatically calculates how much returns you will get on your FD investment at maturity. You have to enter investment amount, tenor and interest rate in pre-populated fields. Within seconds, it will generate results which otherwise could have been a complicated and time-consuming affair with manual calculation.
What are the Benefits of an FD Calculator?
A fixed deposit calculator is the most efficient tool for investment planning. It gives you precise information on the exact returns and value of investment before you put your money in FD. You can rest assured that you know you are making an informed investment decision. It also enables easy comparison across all FD schemes according to varying investment amount, tenor and interest payout frequency.
How to Calculate Returns Using an FD Calculator?
First of all, you should always use a reliable online FD calculator such as that from Bajaj Finance. It gives you accurate and detailed results. There are three easy steps to calculate with Bajaj Finance FD calculator:
- Enter customer type: senior citizen/non-senior citizen investing offline or online.
- Enter investment amount
- Enter investment tenor
Let’s say, you are a senior citizen investing Rs. 4 lakhs for 36 months at 7.35% through an online mode. When you enter these variables in the FD calculator, you will get the following results:
- Cumulative: In this option, you choose to re-invest interest income every year on the principal amount to be paid at maturity.
| Interest rate: 7.35% | Interest payout: Rs. 94,842 | Maturity by: Aug 2023 | Maturity amount: Rs. 4,94,842 |
- Non-Cumulative: In this option, you choose to receive the interest income on a monthly, quarterly, half-yearly or yearly basis for periodic income. Do note that non-cumulative calculations are a unique feature of Bajaj Finance FD calculator.
| Period | Interest Rate | Interest Payout |
| Monthly | 7.11% | Rs.2,370 |
| Quarterly | 7.16% | Rs. 7,160 |
| Half-Yearly | 7.22% | Rs. 14,440 |
| Yearly | 7.35% | Rs. 29,400 |
When you have this kind of information at your fingertips before you start investing, you have a full picture of the growth trajectory of your FD investment. You can change the parameters in the FD interest calculator as many as times till you want till you arrive at the returns that meet your investment goals.
By Gaurav Khanna
who is an experienced financial advisor, digital marketer, and writer who is well known for his ability to predict market trends.
Member since October, 2018
View all the articles of Gaurav Khanna.
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