A fixed deposit calculator is a tool designed to estimate the maturity amount that an investor should expect at the end of a specified term for a specified deposit amount at the applicable rate of interest.
A fixed deposit rates calculator is a tool that assists in estimating the amount of interest that would be earned on a fixed deposit account before investing money. The maturity amount is calculated based on the deposit amount, the fixed deposit interest rate, and the length of time the fixed deposit has been in place. The maturity amount is the amount received after the term of the FD. It comprises the total amount of interest earned on the principal amount.
Benefits of using Fixed Deposit Rates Calculator
- Affordability is important when making any financial decision, and investing in fixed deposits is no exception. One must consider their budget and make it work in harmony with their financial objectives.
- The goal of a fixed deposit is to reduce risk while providing guaranteed earnings. If you make a market-based investment (such as in an equity mutual fund), you take a significant risk. Up to a certain point, your FD investment can assist you in absorbing losses, if any. You’ll need to know how much money to deposit into your FD account to accomplish this.
- The fixed deposit rates calculator can also be used to compare the many types of fixed deposit programs offered by banks and other financial institutions. It is possible to determine which plan gives the best returns throughout the desired period.
Advantages of using fixed deposit rates calculator
There are numerous benefits to using fixed deposit rates calculator, including the following:
- Calculating maturity amounts correctly helps you choose the right tenure for your deposit.
- Choose the best bank for your deposit by comparing interest rates across multiple banks.
- Make sure calculations are accurate every time and prevent mistakes.
- Use a digital calculator or spreadsheet to calculate maturity amounts much faster.
- Comparison of maturity amounts can help you make better decisions regarding the renewal of fixed deposits.
Factors affecting FD Interest Rates
- Economic Circumstances
The current economic conditions and fiscal and monetary policy have a considerable impact on the interest rates that can be charged on bank deposits. It allows you to earn the maximum profits possible while also accumulating a substantial retirement fund for yourself.
- Invested Amount
It is important to note that the quantity of money you deposit into your fixed deposit will directly impact the interest rate that will be applied to your FD.
- Investor’s Age
Your age is also a significant factor in influencing the rate of return on your fixed deposit. The interest rate on senior citizens’ fixed-term deposits is typically higher than the interest rate on other types of deposits.
- Renewals
If you want to have your FD automatically renewed, you can receive higher interest rates on your investment. In addition, there will be no need to keep track of when the contract is due to be renewed. Fixed deposit rates calculator can also be used to quickly determine the amount of money due at maturity.
Step 1: The fixed deposit rates determine your returns at maturity. You will know the interest rate that an FD plan offers only after entering values like principal amount and tenor in an FD calculator. Before entering these values you will also need to select your customer category i.e. the type of customer that you are to a bank or finance company.
For example, if your age is above 60 then you are a senior citizen and therefore, you will need to select the category that is meant for senior citizens.
Step 2: Once you confirm your customer category and enter the FD amount and tenor, you will need to confirm whether you are investing in a cumulative or non-cumulative FD because the interest rate, interest payout options, and final maturity amount will vary as per your choice.
Step 3: Now you can press the ‘Calculate’ button by clicking on it once and the calculator will reveal the interest and maturity amount immediately.
It is quite obvious that the fixed deposit plans offer higher returns only if the interest rate is impressive. To find which financier provides the highest FD interest rate, you can use the FD calculators that will be given on their respective websites. One of the best FD plans in the market is the one that is provided by Bajaj Finance. Its FD plans excel when it comes to FD rates as you will get the highest FD rate of up to 7.25% here. Apart from this, you will be receiving these perks and facilities when you deposit in its FD plans:
Paperless procedure
Bajaj Finance provides a paperless i.e. online procedure for FD investments. You can visit their website and fill the online FD form to invest in a fixed deposit scheme. Get your documents verified online, enjoy the seamless online procedure, and even get a 0.10% additional FD rate for opting for the paperless procedure!
Multi-deposit feature
The option of opening multiple FD plans at once and that also with a single cheque gives you the option of laddering your deposits easily. Even the tenor, FD type, and amount can vary for each of the FDs that you open by utilizing this feature.
Investing in multiple FDs will enable you to invest at a better FD rate in the future and also provides multiple liquidity points that can come in handy during a financial emergency.
Collateral-free loans
After investing in these FD plans, you can also opt for a loan against them. The sanctioned loan amount will depend upon the deposit value as up to 75% of the FD value is provided as a loan. You can apply for this loan whenever you need funds immediately as no collateral is required for it.
As you already know the deposit amount, interest rate, and tenor before depositing in a fixed deposit plan, it is quite easy to calculate the amount that you will receive as an interest at maturity. If you have chosen the non-cumulative FD, you will get the interest payout after every month, quarter, or year as per your requirements, or else the whole interest will be paid at maturity. If you want to invest in high-return investments then you can think of Bajaj Finance FD as it offers a high FD rate and hassle-free online investment procedure.
Not only that, you will get a 0.10% additional FD rate for using the online investment process and a 0.25% extra FD rate is provided to senior citizens. The multi-deposit facility from Bajaj Finance enables you to ladder your deposits easily and you can avail a loan against your deposits whenever you need funds immediately, All these features and perks make it a high-paying and flexible investment option for you.
Final Thoughts
Fixed deposits are made available by several banks in India. Customers can make a one-time payment and receive a payoff at the end of the maturity period or on a monthly basis, depending on their preference. It is possible to calculate your returns using a Fixed Deposit Rates Calculator. You can choose to make a fixed deposit depending on the results of the monthly, quarterly, or yearly calculations. Your financial goals will be met successfully without any difficulties because of the safe and secure nature of the deposits.
