How To Use FD Calculator Monthly Interest Rate?

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Fixed deposits are ideal investment instruments for those who expect high returns without subjecting their deposits to any risks. As the interest rates of FD plans are fixed, you can find out the returns offered by them before opening a fixed deposit account. 

If you want to calculate the FD returns quickly and without making any errors, then you can use an FD calculator. It is nothing but a tool that ia available on the websites of financiers who offer various fixed deposit plans to their customers. 

Upon entering details like customer category, investment amount, tenor of FD, FD type (cumulative or non-cumulative), the calculator will compute the returns and interest gains automatically. 

How can an FD calculator be useful? 

Facilitates comparison of FD plans

  • For earning high returns through an FD, you will try to explore the fixed deposit interest rates offered by different banks and NBFCs.
  • If you keep comparing the FD plans individually, it will take a lot of time and effort and chances are high that you would miss out on an opportunity to lock-in your deposit in a high paying FD. 
  • On the other hand, an FD calculator monthly interest tool will provide clarity on the range of interest rates and tenors offered by various FD plans in a matter of minutes. This will facilitate easy comparison between plans. 

Minimizes errors 

  • The manual formula to calculate interest and returns of an FD is time-consuming and difficult. You may also make a mistake while using this formula.
  • However, as the FD calculator uses an automated program, there is a zero chance of error and you can predict the returns accurately.

Helps you to make better decisions 

  • The financial plans are mostly based on your financial goals and requirements. Since an FD calculator calculates the returns provided by both cumulative and non-cumulative deposits, it helps you to make a better decision based on your requirement. 
  • Bank FDs are offering interest rates up to 5.5% which is not good enough to beat inflation as the returns get further reduced post taxation. However, the FD interest rates of company FDs like Bajaj Finance FDs are still as high as 7.35%. 

Let’s say you want to invest Rs. 10,00,000 for 5 years in an FD but also want to earn some regular income from it. These are the interest payout options that you will get on investing in a non-cumulative Bajaj Finance FD. 

Bajaj Finance FD Tenor  Monthly Interest payout Quarterly Interest payout  Half-yearly interest payout Yearly interest payout 
Rs. 10,00,000 5 years  Rs. 5,925 Rs. 17,900 Rs. 36,100 Rs. 73,500

 

A quick view of the interest payouts by using an FD calculator monthly interest option will help you invest in an FD plan as per your financial needs and expenses. 

Other benefits of investing in company FDs like Bajaj Finance FD:

Liquidity options

  • You don’t have to pay a hefty penalty if you withdraw an FD prematurely as a nominal 1 to 2% interest rate is charged as a penalty fee. 
  • You can even opt for a loan by using your fixed deposit as collateral up to 75% of your FD value. Therefore, you no longer have to break your FD prematurely. 

Convenient investment procedure 

  • You don’t have to submit the documents by visiting the branch offices of finance companies now as eKYC procedure can be used to get your documents verified online. 
  • Bajaj Finance has gone one step ahead to a complete online procedure to invest in an FD plan. For that, you will have to fill an online FD form and the documents can be verified online through the cKYC procedure. 

Security of invested capital 

  • Investing in the Bajaj Finance FDs is a good option because it not only provides better returns but it is also accredited for ensuring the safety of customer’s deposits by reputed credit rating organizations like ICRA and CRISIL.

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