Unlike market-linked instruments that offer varying return rates as per the market conditions and fluctuations, FDs offer fixed returns as their rate of interest remains constant through the entire tenor.
This enables you to calculate the returns precisely as the interest rate applies over the entire tenor and the tenor is also pre-determined.
The returns of an FD can be calculated manually by using a formula. However, the formula is a bit complex and is prone to errors as you might tend to make a mistake while calculating the values manually.
To make the entire process hassle-free, financiers provide an FD calculator on their official portals these days. These portals only require details like tenor, amount, FD type, and customer category, and the rest of the calculation is done by an automated program.
Let’s see the benefits of using an FD calculator now:
- An FD calculator online provides a clear picture of an FD plan as it displays its interest rate, range of the tenor, and returns correctly. Moreover, the accumulated interest or interest payouts (in case of non-cumulative FDs) are also shown by the calculator.
- Comparison of FD plans offered by different financiers becomes easy with the help of these calculators as they allow you to explore the tenor range, deposit amount bracket, interest rates, and other features conveniently.
- A fixed deposit interest calculator nullifies the chances of errors and saves your time and efforts while calculating the interest and final maturity value of a fixed deposit plan.
Why should you invest in a company FD?
Better interest rates
An FD calculator will only let you know the FD returns post maturity but for getting better returns, you will have to invest your deposits at a higher interest rate. Bank FDs rates range from 3 to 5.5% currently whereas some company FDs offer much higher interest rates.
For example, Bajaj Finance FD enables you to lock-in your investment at as high as 7.35% and this difference in fixed deposit interest rates is good enough to improve your returns substantially.
Flexible investment options
Fixed deposit plans offered by NBFCs usually come with more options in terms of method of investment, tenor, withdrawal before maturity, etc.
With Bajaj Finance FD, you not only get the flexibility of choosing a tenor from 12 to 60 months, but you can also choose between monthly, quarterly, six-monthly, and yearly interest payouts as per your requirements.
If you don’t require interest payouts, you can also invest in a cumulative FD that provides the interest gains along with deposited amount at maturity.
Due to the flexibility offered in terms on investment options and tenor, you also stand a chance of splitting your deposit amount in multiple fixed deposit plans.
Also, various tenors and FD types can be selected for each deposit if you are interested in laddering them to gain more liquidity options in the future.
The multi-deposit facility from Bajaj Finance allows you to do that in a hassle-free way as you only need to submit one cheque for depositing in all the individual accounts at once. You also get a 0.10% additional FD rate on using the online application procedure.
A complete end-to-end online application procedure is provided to open an online fixed deposit account. These FD plans are safe as they have been highly rated for their stability by credit rating organizations like ICRA and CRISIL.