Top 5 Main Features of an FD Interest Calculator

HomeBusinessMarketing

Top 5 Main Features of an FD Interest Calculator

A smart way to grow your money is to invest your money. Investment can be done in various instruments including equity shares, Mutual Funds, Public Pr

What Tools Are Used in a Roof Replacement?
How To Earn Money By Web Development
How To Maintain A Healthy Cibil Score?
Spread the love

A smart way to grow your money is to invest your money. Investment can be done in various instruments including equity shares, Mutual Funds, Public Provident Fund, gold ETF, Fixed Deposit and more. Before investing, you need to check the return on the investment, risk and liquidity of the asset. Fixed Deposit is a very lucrative investment option as it gives out interest rates regularly and has easy liquidity.

A fixed deposit is an investment to grow your savings and earn a higher rate of return than a regular savings account. It is offered by banks and NBFCs (Non Banking Financial Companies). A fixed deposit has the lowest risk in the portfolio of investment. Money is invested in a fixed deposit with a lock in period and interest is given either at the end of the maturity date or as a regular payout.

Related: An interesting new money-making feature on Twitter.

Parking your investment in the correct Fixed Deposit in 2021 will ensure high fixed deposit returns on maturity and also a choice of regular interest payouts throughout the chosen tenure. To ensure high returns you must look for a Fixed Deposit scheme with a high interest rate payouts before opening a new fixed deposit account or renewing an existing one.

To determine the Fixed Deposit maturity amount, you can simply use the Bajaj Finance Fixed Deposit Calculator. A few simple steps are to be followed to check the FD maturity amount. Firstly, go to the FD calculator and choose the type of customer you are. Then put in the FD type (cumulative or non-cumulative) and the amount of your principal and the tenor. The final amount of interest and your total amount earned at maturity will be displayed on the screen.

Top 5 main features of Bajaj Finance Fixed Deposit Calculator are: 

  1. It helps you calculate interest on the deposti amount, deposit tenure and depositor type
  2. It helps you to choose between Cumulative and Non Cumulative Fixed deposit to give you the interest in each case

When you use Bajaj Finance Fixed Deposit calculator, there is an option that appears to choose from cumulative and non-cumulative payout options. These two options determine your interest rate and maturity value. A non cumulative Fixed Deposit scheme is an option where the interest is payable on a monthly, quarterly, half yearly and yearly basis.

This kind of option is designed to suit someone who needs an interest payout periodically A cumulative Fixed Deposit scheme on the other hand is an option where interest is payable at the time of maturity along with the principal. The amount in this case is compounded annually. It is a perfect fit for someone who does not require periodic interest payouts.

Related: Bluetooth earphones that have the best specification in the market 

  1. It takes into account the added benefit of 0.25% to 0.5% additional interest rate for senior citizens while calculating the interest amount
  2. The interest rates for Fixed Deposits are compounded periodically and the formula supporting the FD interest rates calculator is put below:

A=P(1+r/n)^n*t

Where,

A is the amount on maturity

P is the principal amount

r is interest rate

t is the number of years

N is the frequency of compounding

  1. Bajaj Finance also calculates the FD effective interest.

Your interest income and yield of your Fixed Deposit is influenced by the effective interest rate on your deposit. The following formula is used to calculate the effective annual interest rate.

Effective Rate = (1 + Nominal Rate / n) n-1

Here,

N is the number of periods per year

Let’s say for example, the annual interest rate is 10%. When the interest rate is compounded annually, it will turn out to be 10%. But if it is compounded quarterly, the effective interest rate would be 14.48%

So the next time you plan to invest in Bajaj Finance Fixed Deposit, you can use the Bajaj Finance Fixed Deposit Calculator to determine the best Fixed Deposit type and tenor for your needs by comparing effective fixed deposit interest rates and amount.


Spread the love

COMMENTS