Investors have an idea about the exact interest rate and tenor of a fixed deposit scheme before investing in it. Also, as its interest rate remains constant throughout the tenor, the maturity amount can be calculated in advance.
To calculate the interest earnings and final maturity amount of an FD, most banks and finance companies include an FD calculator on their website. AnFD calculatoris an online tool that lets you know the returns of an FD once you submit a few values like deposit amount, tenor, FD interest rate, FD type, etc.
How to calculate the interest and maturity amount using an FD calculator?
There is nothing difficult in calculating the interest and maturity of an FD by using anFD rate calculatoras an inbuilt program does all the complex calculation part. You just need to follow the below steps for that:
- Step 1: Choose the financier that you want to start an FD with. Visit its portal and find its FD calculator page.
- Step 2: Once you enter the page, you can check a few basic things like the interest rates and tenor range offered as per your particular customer category. If you find the offers appealing, you can proceed towards the calculation part.
- Step 3: Now, choose your customer category and preferred FD type and enter the principal amount and tenor. Once you enter these inputs, the calculator will automatically select the applicable interest rate.
- Step 4: You just need to click on the ‘Calculate’ button and the calculator will display the returns and interest on the same page. If you want to check the returns for some other deposit amount and tenor then you can do that as well.
Why is using an FD calculator necessary?
You should use an FD maturity calculator before investing in an FD due to these reasons:
Eliminates chances of error
It is necessary to use an FD calculator because without it you will not be able to predict the returns precisely. The manual calculation of interest will consume both time and effort and the results might not be accurate due to errors.
Assists you in finding a high paying FD
As the bank rates have been cut down, finding an FD scheme that offers a high-interest rate should be your topmost priority. A fixed deposit calculator lets you do that by comparing the interest rates offered by different financiers.
Bajaj Finance FD comes with an interest rate of up to 6.85% which is the highest FD rate in the market.Senior citizen scheme interest rateis 0.25% extra than the FD rates offered to non-seniors. This means that you can earn a substantial interest in its FD plans.
Let’s you invest smartly
An FD calculator helps you to find the difference between various FD plans. Likewise, it also shows the difference between cumulative and non-cumulative FD types.
For example, if you are looking for a long-term investment option then you can invest in a cumulative FD of a longer tenor as it provides the interest only at maturity. The earned interest along with the principal amount can be reinvested to multiply the investment at a rapid rate.
An FD calculator helps you pick a cumulative FD plan that can grow your investment swiftly. Bajaj Finance FD calculator shows the interest payouts and interest provided by both cumulative and non-cumulative FDs simultaneously for the same amount and tenor. This helps you to invest smartly according to your financial requirements and goals.
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With Bajaj Finance FD, you can choose a tenor from 12 to 60 months as per your requirement. A 0.10% extra FD rate is provided to those who invest in an FD by using an online FD form. Moreover, it is safe to invest in this FD as it has received high ratings for its stability by ICRA and CRISIL.
It is essential to knowhow to invest moneyin an FD wisely as it will determine the profit you will make from it. An FD calculator calculates the returns of an FD precisely. It reduces human effort and lets you know the maturity amount and interest earnings. You must use an FD calculator before committing to an FD plan as it lets you compare various FD plans and enables you to pick the right FD plan as per your requirements. Bajaj Finance FD is providing one of the highest FD rates in the market. Along with that, it also provides a higher FD rate to senior citizens and allows you to choose a tenor as per your financial goals. You also get a 0.10% extra FD rate on utilizing the online FD account opening process.
Author Bio:
Gaurav Khanna is an experienced financial advisor, digital marketer, and writer who is well known for his ability to predict market trends. Check out his blog atHighlight Story.
