Investors who want to invest in risk-free instruments usually prefer fixed deposit plans over other instruments as they are safe from market fluctuations. If you too want to start investing in an FD then it is natural to be curious about the minimum deposit amount, interest payout frequency, tenor, interest rates, etc.
An FD maturity calculator helps you to analyze all these things easily. In short, it provides a list of all the basic features and benefits of different FD plans without attaching any fancy words or terms to them.
The interest rates vary according to the tenor and FD type chosen by you. By using an FD calculator you can compare the interest rates offered by cumulative and non-cumulative FDs on the basis of your preferred tenor range.
To put an FD calculator to use you will have to follow these simple steps:
- Pick a customer type and enter the amount that you want to deposit.
- Select a tenor and FD type (cumulative or non-cumulative) as per your requirements.
- Some FD calculators do not ask you to choose an FD type since they display the results for both types at once.
- Once you enter all these details, the final maturity value and interest earnings will be displayed on your screen.
- In case you have chosen a non-cumulative FD, you can check the monthly, quarterly, and yearly payouts applicable on the amount and tenor that you had selected.
How can an FD calculator assist your financial plans?
A fixed deposit calculator assists your financial plans in the following ways:
Helps you pick a right FD plan
Since an FD calculator provides accurate figures related to returns and interest gains of an FD plan, you will be able to choose a right FD plan as per your financial goals.
Assists in planning interest income flow for regular expenses
You might think of using FDs to generate a stable income that would meet your monthly expenses. An advanced FD Calculator, such as Bajaj Finance FD Calculator, will help in determining the amount that you need to deposit to generate a monthly payout that is enough to cover your expenses.
Senior citizens often use their FDs to meet their regular expenses like medical bills, electricity bills, etc. and the FD calculator can prove to be more than handy for them.
Helps in comparing FD plans
An FD calculator facilitates easy comparison between different FD plans as you just need to choose different tenors and FD types to see the difference in the final maturity value. For example, the Bajaj Finance FD calculator allows you to choose a tenor between 12 and 60 months and the minimum deposit amount starts from 25,000. Therefore, you have more flexibility while choosing the FD tenor and deposit amount that suits your financial plans.
You also get an opportunity to invest in a high-paying FD as Bajaj Finance FD is offering an FD interest rate of up to 7.35% to its customers.
Apart from the best FD interest rates 2020, with Bajaj Finance FD you also get a multi-deposit facility, a 0.10% extra interest rate on online booking of FDs and upon auto-renewal of FDs, and the safety of your investment as certified by credit ratings from reputed third-party agencies such as CRISIL and ICRA.
You must use an FD calculator to get an idea about the minimum investment amount, tenor, interest payouts, and other benefits of fixed deposit plans. It assists you in picking the right FD plan by providing accurate details about the returns and interest earnings. You can also use it for planning your finances and for checking how the maturity amount varies according to the FD tenor. Bajaj Finance FD not only offers a high-interest rate up to 7.35% but also provides an online FD form, auto-renewal facility, multi-deposit facility, and many other options that make it an ideal choice for investing in an FD.
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 at HighlightStory.