What is a fixed deposit?
A fixed deposit is a financial instrument offered by banks, NBFCs (Non-Banking Financial companies) & Post Offices wherein investors can deposit their money, one time, and secure a high rate of interest than normal savings account. FDs allow you to achieve better returns on your investment based on the kind of FD and the period of FD (tenure) you choose.
However, FD interest rates 2020 vary from one bank or NBFC to another and so does your maturity amount or returns on FD. The amount that you receive on maturity depends on the interest rates applicable. So let’s have a look at some of the factors that affect interest rates and thus your overall returns on FD.
- Deposit Tenure
Banks offer a lower rate of interest on deposits with a shorter tenure whereas high rates come from big tenure. For instance: Bajaj Finance offers 7.40% of interest on FDs with 12 – 23 months of tenure while 7.60% on FDs with 48 – 60 months of tenure.
- Depositor Type
All banks and NBFCs in India offer higher interest rates on senior citizens’ FDs. With Bajaj Finance Fixed Deposits senior citizens can enjoy interest rates up to 7.85%. (0.25% higher than the regular customers)
- Deposit Type
As an investor, you can invest in Fixed deposits or Recurring Deposits as per your needs and goals. The major difference between RD and FD is in their interest payout facility. Interest on FDs can be earned on the entire amount deposited on monthly, quarterly or half-yearly basis. Whereas, interest on RDs come on a recurring basis. For instance, with RD of 1 year, the first deposit will earn you interest for 12 months, the second deposit for 11 months and so on.
The RD and FD interest rates are quite the same; however, you will get higher returns with an FD on the same interest rate and tenor when compared to an RD.
How to calculate FD maturity amount?
Bajaj Finance online Fixed Deposit calculator makes it very easy to calculate FD maturity amount within no time.
What is a fixed deposit calculator?
Bajaj Finance Fixed Deposit Calculator is an online tool designed to help you calculate FD maturity amount in only a couple of seconds. Besides, it also helps you calculate and compare your FD maturity amount conditioned to different combinations of the deposit amount, tenure, and interest payment frequency.
How to Calculate FD Maturity amount?
You can use the Bajaj Finance Fixed Deposit Calculator to calculate FD maturity amount. The steps to be followed are:
- Go to the Bajaj Finance FD Calculator and choose the type of customer type you are i.e. New Customer, Existing Loan Customer or Senior Citizen
- Then select your FD type i.e Cumulative or Non-Cumulative
- And lastly, choose the principal amount and the tenure.
You will automatically be able to see the interest amount earned on the principal for the tenure you selected, and also the total maturity amount of your Fixed Deposit. It is a great way of determining your returns even before you start investing.
Why should you invest in Bajaj Finance Fixed Deposit?
- Additional 0.25% rate of interest is provided to senior citizens.
- You can choose from flexible tenor options ranging from 12 to 60 months.
- Bajaj Finance Fixed Deposit (awarded with ICRA’s MAAA (stable) rating and CRISIL’s FAAA/Stable rating) allows you to withdraw your money prematurely in case of emergencies.
- Easy online investment process for existing customers along with document collection facility at your doorstep.
- Bajaj Finance FD account holders can avail loan up to 75% of their FD amount. So in case of urgency, rather than breaking his FD one can go for loan option with cheap interest rates.
- In addition to these features and benefits, you can easily compute your earnings before you invest by using the Bajaj Finance Fixed Deposit Calculator.
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.