Why And How To Use A Fixed Deposit Calculator To Calculate Returns?

Amongst all kinds of investment options, an option like fixed deposits is highly trusted because the investor has full control over his money. The power to calculate returns; the power to know the exact amount of money you will make out of your investment before putting in even a single dime, makes fixed deposits one of the most reliable and transparent investment options.

Using a fixed deposit return calculator:

A fixed deposit return calculator is a free and simple online tool available on almost every fixed deposit provider’s website. To calculate your returns, it will take into account the below variables:

  1. Type of customer: Specify if you are investing for the first time with that particular FD provider or are an existing customer. Many providers have different interest rates for different types of customers. For example, Bajaj Finance FD gives an additional 0.10% and 0.35% interest to its existing customers and senior citizens, respectively.
  1. Principal: The amount of money you are planning to invest is principal.
  1. Tenor: The time duration of your investment is tenor. Higher the tenor, greater the returns.
  1. Type of deposit: Cumulative and non-cumulative deposits are the two types of FDs. Cumulative FDs pay you once, only at the time of maturity. Whereas, with non-cumulative FDs you can choose the frequency of interest payouts – monthly, quarterly, half-yearly or yearly. Non-cumulative FDs can help you look after your daily expenses by maintaining liquidity, but cumulative FDs pay more.

These variables will determine your interest rate. Bank FDs provide around 6% – 7% interest while newer institutions like Non-Banking Financial Companies (NBFCs) offer 1% – 2% higher than this. Bank interest rates are also subject to change depending on REPO rate cuts and they aren’t looking so good at present. Company FDs like Bajaj Finance FD, hence, are a better investment option as they give you fixed FD interest rates which are not affected by market fluctuations. Let’s see what Bajaj Finance has to offer-

Fixed Deposit Interest Rates 2019
Tenor in Months Minimum deposit (in Rs.) Cumulative Non-Cumulative
Monthly Quarterly Half Yearly Annual
12 – 23 25,000 8.00% 7.72% 7.77% 7.85% 8.00%
24 – 35 8.05% 7.77% 7.82% 7.89% 8.05%
36 – 60 8.35% 8.05% 8.10% 8.18% 8.35%

Why use a fixed deposit return calculator?

Planning is the basis of any investment. An FD calculator helps you plan better. When you can foresee the returns, you can change the principal and tenor, if required, so that the returns meet your investment goal.

Along with calculating returns, it is also necessary to examine the credibility and safety of investment options. Go for a fund that has high credit ratings from reputed rating agencies like ICRA and CRISIL. Bajaj Finance FD has India’s highest stability ratings with CRISIL’s FAAA/Stable and ICRA’s MAAA/Stable rating, meaning you get assured returns. A loan against your fixed deposit is also available with this FD, so you don’t have to liquidate your savings at the time of a financial emergency. Due to these and many such factors, more than 2,50,000 customers trust Bajaj Finance FD with a total of Rs. 16000+ crores of deposits. Start investing now with a simple online application process.

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