Fixed deposit plans allow you to lock-in a fixed amount for a fixed tenor. Therefore, it becomes possible to estimate the final returns and interest earnings as the interest rate also remains constant throughout the FD tenor.
The manual calculation can be time-consuming and is usually prone to unforced human errors. However, you need not calculate the interest and maturity amount manually as banks and NBFCs are providing an FD rate calculator on their portals these days.
What is an FD calculator?
An FD rate calculator is a tool that assists you in financial planning by providing you an accurate estimate of the returns post maturity of an FD plan.
How to predict the returns with an FD calculator?
Using an FD calculator monthly interest tool to calculate the returns offered by various FD schemes is fairly simple. For that, you just have to follow these basic steps:
- Enter your customer type first because it might decide the interest rate or special FD plans that you are eligible for. For example, Bajaj Finance FD offers an additional interest rate of 0.25% to senior citizens. Therefore, stating whether you are a senior citizen or not will enable the calculator predict your returns precisely.
- Now, choose whether you are interested in investing in a cumulative or non-cumulative FD.
- After that, enter or select values like principal amount and tenor, and the FD calculator will display the applicable FD interest rate automatically.
- Once you have entered these values, you can cross-check whether you have entered the amount and tenor correctly. Now, you just have to click on the ‘Calculate’ button and the FD calculator will automatically show the maturity value and interest gains.
Applications of an FD calculator
Here are some of the top applications or uses of an FD calculator:
Getting an idea about the interest rates
- To monitor the wide range of interest rates that are offered by different financiers, you just have to check their respective FD calculators.
- Using the FD calculator, you can check the interest rates applicable to different tenors and FD types, thus getting an exact estimate of the rate at which your investment will grow.
Exploring tenor range & principal
- The minimum investment amount and tenor range offered by a particular bank or finance firm can be easily checked with the help of a fixed deposit calculator.
Meeting financial obligations
- With the help of an FD calculator you will get an idea about the amount, tenor, and FD type you need to choose for fulfilling a certain financial obligation. Therefore, you can use this calculator to plan your investment according to your expenses.
- For instance, Bajaj Finance FD provides you the option of selecting the tenor between 12 and 60 months as per your financial obligations and planning.
- Moreover, it reflects the maturity value and interest earnings of both types of fixed deposit (cumulative and non-cumulative) at once to facilitate easy comparison to the users.
Interest rates as high as 7.35% and high credit ratings by ICRA and CRISIL make Bajaj Finance FDs both safe and a high paying option for you.
Start investing low
Also, you can start investing by just depositing Rs. 25,000 in one of its FD plans or you can invest in an SDP (Systematic Deposit Plan) by investing only Rs. 5,000 or more every month. Under SDP scheme, the number of deposits can be between 6 and 48 and a tenor up to 60 months can be selected for each of these deposits. Moreover, you can also use a separate SDP calculator for easy calculation of FD interest rates and returns for SDP scheme.
Calculating returns offered by a fixed deposit plan is possible because of its fixed tenor and interest rate. To get rid of the complex calculations and errors while calculating the returns of an FD, you can use an FD calculator monthly interest tool. It is also useful for knowing the exact amount and tenor that you need to choose for obtaining the desired returns through different types of FD plans.
It also assists you while planning your finances as you can use it to compare interest rates offered by different FD schemes and types. Bajaj Finance offers a high-interest rate of up to 7.35% and the option of investing in an SDP plan for those who cannot invest a big lump sum amount in an FD.