When you invest in a fixed deposit (FD), you earn interest that accumulates over time and increases your savings. It is recommended to use an FD calculator to compute your earnings from a deposit, beforehand. Here’s all you need to know about an FD calculator:

• An FD interest calculator is an online tool that helps you to determine the exact value of interest earned for a tenor and maturity amount of your FD. It displays the result as per your input.

• One of the main reasons why people like to use fixed deposit calculators is easy and fast calculations of interest income and the maturity amount. The traditional formula to calculate the maturity amount is A=P(1+r/n)^nt. But calculations become complicated using this formula.

• FD calculator helps to evaluate returns on the investment, beforehand. Hence, a great help to plan your investments well before you start investing.

How to use an FD calculator?

The returns on investments such as Fixed Deposit are a function of interest rates, frequency of interest payouts, tenor and other factors. All such information is used by the FD calculator. Follow these steps to use Bajaj Finance FD calculator:

Step 1: Go to www.bajajfinserv.in

Step 2: Go to Products>Fixed Deposits and Investments>Calculator

Step 3: Choose Customer Category – Non-Senior Citizen (Investing Offline) or Non-Senior Citizen (Investing Online) or Senior Citizen (Investing Offline/Online)

Step 4: Choose the Fixed Deposit amount ranging between Rs. 25,000 to 1 crore.

Step 5: Choose Fixed Deposit Tenor ranging between 12-60 months.

The computed results will be shown.

Information Provided by the Calculator

The FD calculator will provide the following information after making calculations based on your input:

For Cumulative Fixed Deposits: Interest rate as per depositor’s category, Interest payout, Maturity date, Maturity amount

For Non-Cumulative Fixed Deposits: Periodic Interest rate, Periodic Interest payout – Monthly, Quarterly, Half-yearly, Yearly and Maturity amount. The Maturity date will be the same as for Cumulative FDs.

Let us assume the principal amount is Rs. 1,00,000 and the tenor is 5 years. If you are a non-senior citizen investing online, the FD calculator will give the following results once you enter these values:

For Cumulative Fixed Deposits

The interest is compounded annually and accumulated for the entire FD tenor. It is payable at the maturity date of your FD. An investor who wants to grow his savings with the compounded interest should choose this FD scheme.

Investment amount: Rs. 1,00,000

Tenor: 5 years

Customer Type: Non-Senior Citizen (investing online)

Interest Rate: 7.2%

Interest Payout: Rs. 4, 571

Maturity Date: Oct 2025

Maturity Amount: Rs. 1,41,571

For Non-Cumulative Fixed Deposits

Non-cumulative Fixed Deposit gives you an option to receive the interest on a monthly, quarterly, half-yearly and yearly basis. An individual who wants a periodic interest payout should choose these FDs. It is beneficial for the investors dependent on their investments for regular income.

Investment amount: Rs. 1,00,000

Tenor: 5 years

Maturity Date: Oct 2025

Thus, by using an FD calculator, you can optimally plan your investments.

Apart from offering a convenient way to calculate your returns using an online FD calculator, Bajaj Finance FD offers the following benefits:

• A higher interest rate in comparison to banks i.e. up to 6.85%.
• Flexible tenors ranging from 12 to 60 months.
• Easy online investment process.
• Option to receive periodic interest payouts.
• Additional 0.25% interest rate for senior citizens.
• The facility of Loan against Fixed Deposit up to 75% of the FD value.
• Multi-deposit facility
• Auto-renewal facility
• Doorstep document collection facility