How to Calculate Fixed Deposit Interest Rates Online

Fixed Deposit Interest Rates

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.

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.

There are many factors which contribute to the calculation of fixed deposit interest rates. Some of them are noted below:

  • Deposit Tenure: A lower tenure will yield a lower interest rate. For a higher interest rate, the tenure should be high or medium range
  • Deposit Amount: Higher deposit amounts will fetch you higher interest rates, especially bulk deposits exceeding Rs.1 crore. Deposit amounts are also directly proportional to interest rates. A higher deposit amount will fetch you a handsome interest rate, specially bulk deposits exceeding 1 cr.
  • Depositor type: Senior citizens typically get 0.25% to 0.50% additional interest rate on fixed deposits.

To determine the Fixed Deposit maturity amount, you can simply use the Fixed Deposit Interest Calculator or Term 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.

What exactly is the Bajaj Finance Fixed Deposit interest rate calculator?

Before you invest your money in a fixed deposit, you need to determine the amount of money that you will receive when the Fixed Deposit reaches its maturity. This is where the Bajaj Finance Fixed Deposit is very useful.

How does Bajaj Finance Fixed Deposit calculator work?

The Bajaj Finance Fixed Deposit calculator is very easy to use. You need to put in the fixed Deposit amount and the tenor to calculate the amount receivable on maturity. It is also useful in calculating both cumulative and non cumulative payouts.

The returns on your fixed deposit investments are calculated using your interest rate and frequency of interest payouts. 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

How is FD effective rate calculated?

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

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