It is natural to want a clear idea of what you stand to gain before signing up for fixed deposits. However compounded interest on FDs are not easy to calculate, and neither is figuring out what your interest pay-out will be if you choose non-cumulative FDs. But there is no need to worry. You can easily perform these calculations using an FD calculator. An FD calculator can be defined as an online application that helps you calculate the maturity amount and interest amount on your FD, by entering the details of your investment, such as principal and tenor. This can help you make the final decision of whether the returns from FDs are feasible for you or not.

How to Use It?

An FD calculator is user-friendly and simple with a smooth interface. Here are the steps needed to use an FD interest rate calculator:

  1. Go to an online fixed deposit calculator
  2. Start by filling in the first category, and select whether you are a new customer, existing loan customer, or senior citizen. This selection determines your FD interest rates.
  3. After this, the next section would involve selecting the type of fixed deposit you want to invest in. Decide on whether you wish for a cumulative or non-cumulative deposit.
  4. In the third section, fill in the amount of fixed deposit you seek to invest. Bajaj Finance accepts a minimum deposit Rs.25,000 and a maximum deposit of Rs.5 crore.
  5. Once this is done, select the tenor for which you seek to invest this amount. Tenor can be defined as a period over which your invested amount matures. It ranges from 12 months to 60 months.
  6. Once all these fields have been filled, the calculator will automatically display a forecast of your interest rate and investment amount after maturity.
  7. If you have chosen a non-cumulative deposit, also select your interest pay out frequency to arrive at the final figures.

What Is the Formula For Calculating Your FD?

The calculation of your fixed deposit pay-out has the following formula:

A = P (1 + r/4/100) ^ (4*n)

and

A = P (1 + r/25)4n.

A is the maturity amount, P is the deposit amount and n is the compounded interest frequency.

All you have to do is substitute the alphabets with the real figures.

Points to Note About the Fixed Deposit Calculator

  1. The calculator only helps you calculate maturity amount and interest
  2. The interest rates vary from cumulative to non-cumulative FDs
  3. The interest earnings from cumulative deposits are payable at the end of the tenor
  4. The interest rates would change depending on the tenor selected
  5. It does not show the amount of tax that would applicable

Also Read: Everything You Need To Know About Fixed Deposit Schemes

Benefits of an FD Calculator

  • It gives you a precise estimation to help you make your final choice.
  • You can evaluate the figures from the calculator to make a decision on which type of fixed deposit is right for you.
  • It can help you decide on the most suitable investment amount after judging the various interest earnings on various principals.
  • It provides you the precise and accurate results.
  • It has a simple, smooth and user friendly interface that doesn’t require any e-skills.
  • It works fast and is a better alternative than performing the manual mathematical calculations yourself
  • It saves you the time and money from taking external or professional consulting to help you calculate your earnings.

Whether you are a new investor considering investing in FDs or a senior citizen looking to calculate your earnings, you can gain more clarity on your decision by using the FD calculator.

In your search for the right FD, consider Bajaj Finance’s high interest FDs that you can sign up for after a quick online application.

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