A fixed deposit is a secure investment avenue that adds value to your investment portfolio whether you are looking for a risk-free instrument or just want to balance out your risk. However, there are other appealing features of an FD, which also make it an attractive investment. These include special tenor schemes that give you higher earnings, safety ratings that make choosing the right FD easy, online account management that makes it easy to keep track of your earnings and the scope for a loan against your FD to meet urgent needs.
However, before investing in a fixed deposit, you should forecast your returns to plan your finances efficiently. By telling you the expected returns beforehand, an FD interest calculator can help you make an informed decision about the amount you should deposit and the tenor you should choose. Here is how you can use the FD interest calculator to make your decision.
- How FD calculators help you invest smartly?
Using FD Monthly interest calculator, you can accurately plan your finances in advance. The benefits associated with this calculator include the following:
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- It helps you calculate the exact returns from your investment for effective financial planning.
- It helps you review earnings for different types of FD based on the interest rates and tenors.
- It helps you review your monthly, quarterly, half-yearly or annual interest payouts.
- It helps you understand how a change in your investment tenor impacts your returns.
This information will help you choose an FD with maximum returns.
- How to use this calculator?
You can use this calculator by following these simple steps:
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- Choose whether you are a new customer, an existing customer or a senior citizen.
- Select the type of fixed deposit that you wish to invest in based on whether you want to earn returns regularly on monthly, quarterly, half-yearly or annual basis or whether you want to access the returns only at maturity or end of your tenor.
- Enter the amount you want to deposit.
- Select the tenor for which you wish to invest.
As soon as you enter these details, you will see the interest amount and the amount you will receive at the time of maturity.
- Other factors to consider for an FD investment
- Interest rates on your FD
Interest rates vary from one financial institution to another. Thus, before investing in an FD, compare your earnings based on different FDs interest rates using the calculator. You can choose the one that offers the highest interest rate in the market.
- FD tenor
Your FD tenor directly affects your returns from investment. Therefore, it is necessary to select the FD tenor appropriately. Based on your financial goals, you can choose to invest in an FD for a shorter or a longer tenor.
- Type of FD
Choosing an FD that offers returns at maturity helps you earn more as your interest is compounded and added to the principal each cycle, earning more interest. If you need to service loan EMIs or pay for daily living expenses, you can also choose an FD offering frequent payouts, but this will reduce your gains.
- Credibility of the issuer
This is one of the most important factors to consider before investing. It is in your best interest to invest with issuers that have high CRISIL and ICRA rating like Bajaj Finance.
- Premature withdrawal of the FD
You may face a situation where you need funds on an urgent basis. In such a case, you have to prematurely withdraw money from your FD and cater to your financial needs. Therefore, it is imperative to know whether your issuer allows the premature withdrawal facility or not and the penalty charged for it when they do. Also check if you can get a loan against an FD that will help you in case of emergency without liquidating your investments.
When you wish to earn good returns on easy terms for a longer tenor, start an FD with Bajaj Finance. Here you will receive a high interest of up to 8.75% on a Fixed Deposit offering returns at maturity started for at least 36 months or up to 9.10% if you are a senior citizen on the same FD. So, get started now and begin an investment for a healthy financial future.
