Investors are always in search of a valuable investment that can yield them high returns with low risk. Among all other options, FDs fulfill all the criteria for a low-risk appetite investor. Fixed deposits provide an option of lump sum investment with assured returns for a period ranging from 7 days to 10 years. Banks and NBFCs offer various schemes in accordance with investor preference such as regular FDs, senior citizen FDs, and tax-saver FDs.
The company fixed deposits like Bajaj Finance Fixed Deposits offer higher returns than bank fixed deposits. You can invest online quickly with a minimum amount of Rs 25,000. Reputed third-party credit rating agencies like CRISIL and ICRA have accredited Bajaj Finance FDs for their safety and stability. It also provides cumulative and non-cumulative schemes wherein you can either earn a regular income stream from periodic interest payouts or opt to re-invest interest to grow the corpus.
Tools for investors
At times, it’s difficult for many investors to manually calculate interest amount on FDs which makes it difficult for them to decide upon the investment amount. But with the help of an on online FD calculator, you can check the interest rate you will earn for the specified period of time.
Bajaj Finance FD offers free online Fixed Deposit Interest rate calculator to ascertain the interest amount you will earn for the specific maturity periods. It provides an intuitive user interface that can be set according to various parameters as preferred by the investor.
Steps to use FD calculator:
- Select the customer category to which you belong, whether a new customer, an existing customer or a senior citizen. This category decides the rate of interest that is to be offered. If you choose a regular deposit account, you will be offered an interest rate of 8.75%. While senior citizen accounts receive extra 0.35% interest and those undergoing renewal of existing FDs are offered a bonus of 0.25% extra interest rate.
- Next, you need to choose between the cumulative and non-cumulative options and ascertain the way you want a payout of interest.
- Now, enter the desired amount you wish to invest; with Bajaj Finance you can open FD with a lump sum amount of Rs 25,000.
- And then you need to specify the maturity period which usually ranges from 12 months to 60 months.
With these steps, you can ascertain the interest that will be earned for the period specified. Apart from this, you can change the values of the above-mentioned parameters to gain insight into the calculation of the rate of interest.
Here are the basic terminologies you must know before imputing these value in the FD calculator:
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- Special Tenor: This parameter is available at the top of the calculator, though tenor ranges from 12 months to 60 months, in case of Bajaj Finance FD calculator, there’s an option of a special tenor scheme that will fetch you higher returns than regular FDs. The special tenor FD is for 15 months and offers higher interest rates as compared to regular FDs.
- Deposit Option: You need to specify whether you are looking for a cumulative option which allows a payout of interest on the maturity of the term only or non-cumulative option which enables you to decide the interest payout mode monthly, quarterly, half-yearly or annually.
- The rate of interest: Rate that is currently specified by the company. For instance, Bajaj Finance Fixed Deposit interest rate is already set on their FD calculator; you just need to work on other parameters such as interest rate changes. You can observe that with an increase in the tenor of FD, the interest rate also increases. FD calculator can help you keep track of changing interest rates as the economic environment changes.
- Investment tenor: This is important as it will determine the number of times your amount will be compounded. This can be aligned with a financial goal due at that time.
