3 Reasons Why You Should Use a Fixed Deposit Interest Calculator
FDs make for a safe way to balance your portfolio and are a must-have when you want to earn a fixed income. Considering the limited risk exposure that they carry, FDs offer a great rate of return, provided you choose the right issuer. One way of ensuring that you make the right choices and set your investment up for success, is by utilizing an FD calculator.
This free online calculator is offered by most trusted FD issuers, and by entering a handful of details you can see how your money will grow over the course of your investment. Take a deeper look at why using a fixed deposit interest calculator is an indispensable part of making an investment.
Forecast your returns from an FD
Essentially, a fixed deposit interest calculator uses details such as the investment amount, tenor and interest rate to show you the amount that you will get at maturity. You can supplement this with details such as whether you are a new or existing customer, or wish to opt for a special tenor scheme.
Once you check the applicable boxes, enter the amounts or use the sliders to indicate the sum you have in mind. In seconds, the calculator will show you the amount you will receive at maturity and the interest that you will earn.
Choose the best-fixed deposit
Since a well fixed deposit interest calculator distinctly specifies the amount that you will receive on maturity as well as the interest amount, you can use it to decide which fixed deposit to invest in. By changing the interest rate keeping the investment amount and tenor constant, you’ll be able to see which fixed deposit is the best one for you to invest in.
One option that should make it to the top of your list is a Bajaj Finance FD. It offers high interest on fixed deposits, to the tune of 8.75%, if you hold an FD with payouts at maturity for at least 36 months, and 9.10% if you are a senior citizen. Furthermore, it yields an extra 0.25% interest when you renew your FD and offers special tenor schemes as well.
Make a smart decision about payout frequency
Most fixed deposits, including a Bajaj Finance FD, allow you to decide whether you want to receive the interest at maturity, along with the principal amount, or at regular intervals over the course of the tenor. In the first case, the interest benefits from compounding throughout the tenor, and in the second case, the FD investment gives you liquidity at periodic intervals so you can meet your needs with ease.
If you’re unsure about which option to opt for, you can use the fixed deposit interest calculator to see the extent to which either choice will affect your net returns. Typically, FDs that enjoy compounding of interest offer you higher returns, but using the calculator will help you understand this in clearer terms, and compare the returns with your investment objective, be it wealth creation or supplementing your income.
Once you use a fixed deposit interest calculator, you’ll find that it’s prudent to invest in a Bajaj Finance FD, one of the best in the country. Apart from a high-interest rate, it offers a plethora of features that make it a sound investment such as easy online application, doorstep document pickup, online investment management and high credibility ratings from CRISIL and ICRA. Moreover, since you can invest as low an amount as Rs.25,000, and pick a tenor of your choice, it’s in your best interest to invest right away.