Investments are supposed to help you achieve your short term and long term financial goals. Fixed Deposits (FDs) are considered one of the safest investment avenues to help you meet your financial goals. Fixed deposit is also known as the term deposit.
Term deposit interest rate depends on various factors such as investor’s category, investment amount, investment tenor, investment type i.e. cumulative or non-cumulative, and interest payout frequency.
If you want to compare FD returns for different tenors, for different amounts, for different FD types or different depositor’s categories, you will have to do a lot of calculations manually that will need a lot of time and effort and there is a chance of errors also. Instead of doing manual calculations, you can use an FD calculator to help you calculate how much you are going to earn with your FD. You need to enter basic details and within seconds the results will be on your screen. Let’s discuss the steps involved in using Bajaj Finance FD Calculator.
Steps to be followed to use online FD Calculator
Step 1: Go to https://www.bajajfinserv.in > Fixed Deposit and investment > Calculator
Step 2: Choose customer type on whose name FD account will be opened.
- Non-Senior Citizen (Investing Offline) OR
- Non-Senior Citizen (Investing Online) OR
- Senior Citizen (Investing Offline/Online)
Here you are seeing options for investing online and offline. If you open an FD account online, you will be provided with an additional interest rate of 0.10%. So, invest online and take advantage of extra interest rates.
Step 3: Enter or choose the investment amount from Rs. 25,000 to 1 crore.
- You can invest as low as Rs.25,000 only in an FD account.
Step 4: Enter or choose FD tenor between 12-60 months.
Bajaj Finance facilitates you with a flexible tenor options that will help you to achieve your short term goals as well as long term goals. Longer the investing period, higher the rate of returns.
You will get the following information as per the details you have entered:
Let us assume that you have entered a principal amount of Rs. 10,00,000 for a tenure of 5 years as a senior citizen. The results that will be displayed are:
Cumulative Fixed Deposits
Interest rate: 6.85%
Interest payout: Rs. 3,92,748
Maturity date: November 2025
Maturity amount: Rs. 13,92,748
Cumulative Fixed Deposit: If you choose to invest in cumulative FDs, the FD interest will be compounded annually and credited to your account at the maturity date. Cumulative FDs have the advantage of compound interest that’s why the maturity amount is higher than non-cumulative FDs.
Non-Cumulative Fixed Deposits
The results will include the following information:
The interest rate applicable for monthly, quarterly, half-yearly, yearly interest payout frequency. Interest payouts amount for monthly, quarterly, half-yearly, yearly payout frequency.
Non-Cumulative FDs: If you choose a non-cumulative fixed deposit, you will have the option of receiving interest payouts periodically i.e. monthly, quarterly, half-yearly, yearly. These FDs are best for senior citizens because of frequent interest payout options. The FD interest rate will be affected as per your choice of interest payouts frequency.
A glance at FD rates today
Post office FD plans are different from Bank FDs and non-banking financial institutions (NBFCs). With the post office, FD interest rates are between 5.5-6.7%. With Banks, it is between 3-6%. NBFCs like Bajaj Finance offer higher interest rates as compared to post offices and banks i.e. up to 6.85%. Apart from high interest rates, Bajaj Finance FD also offers several other benefits such as flexible tenor options, freedom to choose the frequency of interest payouts, online loan against FD, multi-deposit facility, and more. Bajaj Finance FD is rated FAAA/Stable by ICRA and MAAA/Stable by CRISIL, which means your deposits are safe.