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 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.
Money is invested in a fixed deposit with a lock in period and interest is given either at the end of the maturity date or as a regular pay-out.
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 pay-outs throughout the chosen tenure. To ensure high returns you must look for a Fixed Deposit scheme with a high interest rate pay-outs before opening a new fixed deposit account or renewing an existing one. Higher pay-outs are primarily offered by a reputed NBFC, Bajaj Finance. They also solve your calculation problems.
To determine the Fixed Deposit maturity amount, you can simply use the Bajaj Finance Fixed Deposit Calculator.
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 FD calculator, there is an option that appears to choose from cumulative and non-cumulative pay-out 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 pay-out 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 pay-outs.
It is necessary to determine your own needs and requirements before picking a plan. With the help of Bajaj Finance FD Calculator, you can plan your investments by forecasting your returns based on the selected deposit amount, tenor and the frequency of pay-out.
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 pay-outs. 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 FD 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 pay-outs.
Benefits of using the calculator
- It reduces the complexities of solving the equations manually with formulas
- Allows for an easy of comparison of different FDs in a short span of time
- It can calculate both cumulative and non-cumulative pay-outs
- It’s a great tool for making INVESTING a lot more analytical yet convenient and more than anything, simplified
After all, it is the existence of tools such as this online calculator which simplify so many processes. Bajaj Finance has always been a driving force for the financial world whether it be their products or tools. They offer the highest interest rates for FDs too.
Hence, the next time you plan to browse through investments in India, you can use a Fixed Deposit Calculator to determine the best Fixed Deposit type and tenor for your needs. We’d recommend the Bajaj Finance one.