Fixed Deposits (FDs) are rather popular because of the institutionalised characteristics that they possess. Calculations are a deterring part of inve
Fixed Deposits (FDs) are rather popular because of the institutionalised characteristics that they possess. Calculations are a deterring part of investing. Nobody likes to sit with a pen and paper or even an excel sheet in a world that is driven by the most advanced technologies. This is where tools like the Bajaj Finance FD online calculator becomes extremely useful. In fact, though it is by Bajaj you can always use it for drawing a comparison of different FDs. Before using it, it’s important to understand more about FDs in general.
Parking your investment in the correct fixed deposit in 2021 will ensure high fixed deposit returns on maturity and also a choice of regular interest payouts throughout the chosen tenure. To ensure high returns you must look for a Fixed Deposit scheme with a high interest rate payouts before opening a new fixed deposit account or renewing an existing one. Higher payouts are primarily offered by a reputed NBFC, Bajaj Finance. They also solve your calculation problems.
THE AVERAGE FD RATE IN INDIA IS 5.5%. As of July 2021, the average fixed deposit interest rates offered for tenures ranging from 7 days to 10 years, for deposits below Rs. 2 crores of major financial institutions, like YES Bank, is 6%.
Among the reputed corporate fixed deposits, the average rate of return range is from 4.5-5.75%. Post Office FDs offer better rates than banks.
In fact, FDs for shorter time periods like less than 6 months have rates calculated on Simple Interest basis taking into account number of days.
To determine the Fixed Deposit maturity amount, you can simply use the Bajaj Finance Fixed Deposit Calculator. In fact, Bajaj Finance FD too offers an interest rate of 6.50% and 6.75% for senior citizens.
A few simple steps are to be followed to check the FD maturity amount. Firstly, go to the FD calculator and choose the type of customer you are. Then put in the FD type (cumulative or non-cumulative) and the amount of your principal and the tenor. The final amount of interest and your total amount earned at maturity will be displayed on the screen.
When you use Bajaj Finance Fixed Deposit calculator, there is an option that appears to choose from cumulative and non-cumulative payout options. These two options determine your interest rate and maturity value.
A non-cumulative Fixed Deposit scheme is an option where the interest is payable on a monthly, quarterly, half yearly and yearly basis. This kind of option is designed to suit someone who needs an interest payout periodically
A cumulative Fixed Deposit scheme on the other hand is an option where interest is payable at the time of maturity along with the principal. The amount in this case is compounded annually. It is a perfect fit for someone who does not require periodic interest payouts.
It is necessary to determine your own needs and requirements before picking a plan. With the help of Bajaj Finance Fixed Deposit Calculator, you can plan your investments by forecasting your returns based on the selected deposit amount, tenor and the frequency of payout.
But how is this interest on Fixed Deposit calculated?
The returns on your fixed deposit investments are calculated using your interest rate and frequency of interest payouts. The interest rates for Fixed Deposits are compounded periodically and the formula supporting the FD interest rates calculator is put below:
A is the amount on maturity
P is the principal amount
r is interest rate
t is the number of years
N is the frequency of compounding
What exactly is the Bajaj Finance Fixed Deposit interest rate calculator?
Before you invest your money in a fixed deposit, you need to determine the amount of money that you will receive when the Fixed Deposit reaches its maturity. This is where the Bajaj Finance Fixed Deposit is very useful.
How does Bajaj Finance Fixed Deposit calculator work?
The Bajaj Finance Fixed Deposit calculator is very easy to use. You need to put in the fixed Deposit amount and the tenor to calculate the amount receivable on maturity. It is also useful in calculating both cumulative and non cumulative payouts.
How is FD effective rate calculated?
Your interest income and yield of your Fixed Deposit is influenced by the effective interest rate on your deposit. The following formula is use to calculate the effective annual interest rate.
Effective Rate = (1 + Nominal Rate / n) n-1
N is the number of periods per year
Hence, the next time you plan to invest in Bajaj Finance Fixed Deposit, you can use the Bajaj Finance Fixed Deposit Calculator to determine the best Fixed Deposit type and tenor for your needs.