How Does An FD Interest Calculator Help In Investment Planning?
Interest Calculator
Investing in a fixed deposit can prove to be a wise decision only if you select the investment amount, tenor, and other options smartly.
However, with FDs, you have the additional benefit of knowing your returns in advance.
This became possible with the introduction of an FD calculator that may be found on the portals of most financial institutions these days.
An FD calculator is a simple tool that lets you estimate the FD returns without going into complicated calculations.
You can utilize these ideas to plan your investments smartly with a fixed deposit interest rate calculator:
Helps to make a smart choice
An FD calculator helps you in making a smart choice while investing. This is because it shows the tenor and FD type that enable you to grow your investment at the highest possible interest rate.
As each bank and corporate FD will provide a unique FD interest rate, you can explore various FD calculators to figure out the FD scheme that offers the highest interest rates and returns.
For example, bank FDs will provide an interest rate of up to 5.5% whereas a corporate FD such as Bajaj Finance FD will multiply your investment at an FD interest rate of up to 6.75%.
Therefore, if you are planning to invest Rs. 25,00,000 in an FD, the below table might prove to be insightful for you:
| FD Plan | Amount | Tenor | Interest Rate | Interest earnings | Maturity Amount | Growth in Savings |
| Bank FD | Rs. 25,00,000 | 60 months | 5.5% | Rs. 7,85,166 | Rs. 32,85,166 | 31.40% |
| Bajaj Finance FD | Rs. 25,00,000 | 60 months | 6.75% | Rs. 9,65,608 | Rs. 34,65,608 | 38.62% |
Therefore, with the help of an FD calculator, you can analyze that Bajaj Finance FD offers higher returns as compared to bank FDs.
A higher FD rate of 0.10% is provided by Bajaj Finance for its online investors and senior citizens have the opportunity to grow their savings at a 0.25% higher FD rate.
The details about the interest rates that apply to certain customer categories will also be provided by an FD calculator.
As a result, it will help you to make a well-informed decision that will also improve your chances of earning much higher returns.
Accurate estimation
With manual calculations, there is some room for error and this can be nullified by using an FD calculator.
Also, with the right figure of returns and interest earnings, you will be able to decide whether it is worth investing in that specific FD plan or not.
Planning investments
In the above section, you have seen how the fixed deposit interest rate calculator helps you to lock your deposits at a higher FD rate.
A fixed deposit calculator also allows you to pick a tenor, investment amount, and FD type as per your investment plan.
For example, if you are interested in earning a monthly salary through FDs, an FD calculator will reflect whether the monthly interest payout option is available or not.
Similarly, by showing the returns for multiple combinations of tenor and amount, it helps you to reach your investment goals smoothly.
Bajaj Finance lets you choose the monthly interest payout option by investing in a non-cumulative Bajaj Finance FD.
The options of quarterly, yearly, or six-monthly interest withdrawals can also be chosen as per your fund needs.
The features like multi-deposit facility, loan against FDs, online tracking tools, etc. make Bajaj Finance FD one of the convenient platforms in India for investing in FDs.
The online investment procedure and option of paying through UPI, net banking, and debit cards (in some locations only) make Bajaj Finance FD an accessible investment alternative for everyone.
Author Bio:
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 Highlight Story.
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Category: Investing
