The FD rates today are considerably lower than what it used to be a few years ago. The reason behind the decline in the interest rates is the frequent repo rate cuts announced by RBI since the last year. In fact, the first half of 2020 has already witnessed RBI slashing the repo rate two times. The post office fixed deposit interest rate and returns from other fixed income instruments are also falling.
However, NBFCs like Bajaj Finance still continue to offer high interest rates on FD. Hence, it has been gaining popularity among FD investors. Bajaj Finance FD offers an interest rate of up to 7.35%, which is among the best FD rates today.
If you want to compare returns across all FD issuers and plan your investments accordingly, an online FD calculator can do it for you easily.
What is an Online FD Calculator?
It is a tool which automatically calculates various FD return parameters like maturity amount, interest payout amount and earned interest. Unlike the manual calculation which can be tedious and time-consuming, an online calculator is a faster and hassle-free option. Let’s tell you how.
The manual calculation uses a complex formula:
A = P (1 + r/n) ^ (nt)
where,
A is Maturity Amount
P is Deposit Amount
r is Rate of Interest
n is Compounded Interest Frequency
t is Tenor
Unless you a number wizard or someone with a mind that works at the speed of a calculator, this mathematical formula can become tricky for manual computations! But, most importantly, this formula gives vague estimates. This means that your FD investment planning can go wrong.
On the contrary, the FD calculator gives you accurate results so that you know whether your investment yields income you are expecting.
How to Use an Online FD Calculator?
You should the FD calculator from reliable websites such as that of Bajaj Finance. Its online calculator has been designed such that you can easily estimate the exact value of FD returns. You need to follow some simple steps:
- Enter the deposit amount.
- Enter the tenor.
- Select the customer status – new customer, existing customer, senior citizen or Bajaj employee.
The calculator will show you two types of results:
Cumulative FD: In a cumulative FD, the interest income in re-invested every year on the principal amount and paid at maturity. This helps you build a sizeable corpus.
The online calculator shows total interest payout, maturity date and total maturity amount at the end of tenor in cumulative FD.
Non-Cumulative FD: In a non-cumulative FD, you have an option to withdraw interest on monthly, quarterly, half-yearly or yearly basis so that you have a steady flow of income.
The online calculator shows you interest rate and interest payout against payout frequency you have chosen. This helps you to determine how you will earn returns and whether it meets your periodic income goals. This feature is unique to only Bajaj Finance calculator. An online FD calculator is the ideal way to compute returns on your FD investment.
It just takes a few clicks of a button on your laptop or phone to display the results on the screen. Whether you want to compare bank FD, company FD or post office FD, this calculator is very useful. It also gives precise results so that you know how your money is growing in the FD. Given the falling FD rates today, it is recommended to invest in Bajaj Finance FD which is offering a generous interest of up to 7.35%. If you book Bajaj Finance FD online, you can even earn 0.10% additional interest rate.
