To estimate the returns that you are supposed to get after investing in a fixed deposit plan, you can use an FD maturity calculator. The returns and interest gains calculated by an FD calculator are fairly accurate as the values of the investment period, rate of returns, and amount are known to you in advance. However, to learn how to use an FD calculator, you can check the below -given procedure:
Step 1: Use an online calculator
You may use an online calculator to check the FD returns. The FD calculator provided on the official website of particular banks and NBFCs can also be used to check the returns offered by their specific FD plans.
Step 2: Enter the details
Details like amount, tenor, FD type, etc. should be provided to the calculator to enable it to calculate the returns smoothly. You will also find certain categories mentioned in the FD calculators of some financiers as they offer special interest to some categories.
After selecting a customer category and entering the required details, you can ask the calculator to show the returns.
The returns of an FD depends on the interest rate offered by a financier and the tenor that you choose while investing. Therefore, it is advisable that you park your earnings in an FD plan that guarantees high returns by providing a high-interest rate.
For example, the interest rate of up to 6.75% offered by Bajaj Finance is one of the most impressive FD interest rates in 2021. As you get a flexible tenor ranging from 12 to 60 months with Bajaj Finance FD, you can plan your investments as per your financial goals and needs. The below-given features of Bajaj Finance FD might help you to accumulate huge returns through an FD:
Compounding of returns
The interest of a fixed deposit is calculated based on the compound interest formula. However, the benefits of it are truly realized when you invest in cumulative FDs that offer high-interest rates. This is because cumulative FDs do not pay the interest periodically and as a result, the interest gets added to the principal and the returns get compounded.
As Bajaj Finance FD offers one of the highest FD rates in the country, you can choose a cumulative FD to grow your deposits quickly. However, if you need a financial backup you can also invest some amount in a non-cumulative FD that will provide you with interest payouts at regular intervals. Bajaj Finance gives you the option of withdrawing the interest after each month, 3-month, 6-month, or year as per your needs.
Safety of returns
Checking whether the FD plan that you are thinking of investing in will provide guaranteed returns at maturity or not is important. For that, you can select a credible FD plan such as Bajaj Finance FD that has obtained high stability ratings by CRISIL and ICRA.
Ensuring enough flexibility
A flexible FD plan will allow you to withdraw your deposits whenever you are in search of funds. Bajaj Finance FD lets you withdraw your investment prematurely after it completes the initial lock-in term of 3 months. Also, the loan against FD feature allows you to keep growing your deposits without any halts as you can get a loan amount up to 75% of your FD value in times of need.
Also, facilities like the multi-deposit feature help you to ladder FDs conveniently by dividing the corpus into FDs of unique tenor and principal amount. This feature also lets you receive the benefits of both FD types simultaneously and a single cheque can be submitted to deposit in the multiple FD accounts at once. All these features and the additional FD interest rate given to online investors and senior citizens make it a happening investment option this year.