Calculating returns before investing in an instrument is a good practice because it allows you to strategize your financial plans efficiently. However, not all instruments provide this luxury to investors. Investment avenues like fixed deposits do allow you to predict the interest earnings in advance as they offr a fixed interest rate once you select an FD tenor and FD type as per your investment needs. The interest calculation involves several factors and can be complex for a common man. To make it easier, banks and finance companies have started providing an FD calculator on their website.
What is an FD calculator?
An FD calculator is a program that accepts the input that you provide and returns a value that is close enough to the FD returns that you will receive at maturity. For that, you need to adhere to the below procedure:
Step 1: Choose a financier
Firstly, you should select a financier that is offering the kind of features and benefits that you are expecting from a fixed deposit plan. Once you find it, you can visit the official website of the financier and hopefully, you will find an FD calculator page on it.
Step 2: Input values
Upon finding the fixed deposit calculator page, you just need to make a few selections and enter a few values in the online FD calculator. For example, you will need to select your customer category and enter the principal amount and tenor as per your desire. You may also select whether you are keen on investing in cumulative or non-cumulative FDs.
Step 3: Calculate returns
After selecting all the above-mentioned values, you can use the ‘Calculate’ option to find the interest earnings and FD returns.
Though it is easy to calculate FD returns by using a fixed deposit calculator, the interest earnings will be significant only if a fixed deposit plan offers a high FD interest rate. As bank FD rates are quite low these days, you can prefer to invest in a Bajaj Finance FD that is offering FD rates up to 6.75%. Apart from a high FD rate, you will get the following benefits upon investing in this FD scheme:
Convenient investment options
For faster growth of deposits, you can invest in a cumulative Bajaj Finance FD. Cumulative FDs help you to earn well as the interest generated in every calculation cycle is added to the principal during the next cycle. This multiplies your interest earnings faster especially if you choose a longer tenor.
However, if you need extra funds to take care your monthly budget, investing in a non-cumulative Bajaj Finance FD could prove to be the better option. You get multiple interest payout options i.e. you have the choice of selecting between monthly, yearly, six-monthly, and quarterly period interest payout options as per your fund requirements.
Bajaj Finance offers an online investment process for those who don’t want to get out of their house for the sake of investing in an FD. For encouraging online investment, Bajaj Finance FD gives a 0.10% higher FD rate to online investors. Submit an online FD form and get the documents verified via an online CKYC process.
The option of depositing via net banking and UPI is available and even the option of paying through a debit card is available at select locations. Senior citizens get 0.25% on investing in a Bajaj Finance FD and the mode of investment doesn’t matter in this case.
Features like loans against FDs, multi-deposit facility, online tracking of FDs, etc. make it a great investment alternative in 2021.