Easiest Way to Calculate Fixed Deposit Interest Rates

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As far as managing money and wealth goes, we tend to stick to traditional and tried and tested options. Even calculating returns on investments is an exercise of the mind. While it certainly provides the much needed mental exercise, you can tend to miss out on the exact benefits of tenor and changes in interest rates. To mitigate this risk of not knowing the full impact of your investment, you can easily make use of the free online FD interest rates calculator .

To be an informed investor, one must understand the basics of interest rates calculation. There are various methods to calculate interest rate on fixed deposits such as manual through formulae and compound interest tables or you can simply login to your bank website for the fixed deposit calculators available there.

While we talk about calculator assistance, you can check out the free term deposit calculator from Bajaj Finance where you can easily adjust the factors per your requirement and get the maturity amount you can expect to receive. With a simple and user-friendly interface, anyone can use this at their convenience. 

Factors Determining Your Interest Amount

Here are the basic terminologies one must know before computing the value in the FD calculator:

  • Tenor: This parameter is available at the top of the calculator and ranges from 12 months to 60 months for Bajaj Finance
  • Payout Option: You need to specify whether you are looking for a cumulative option which allows payout of interest on the maturity of the term only or non-cumulative option which enables you to decide the payout mode monthly, quarterly, half-yearly or annually.
  • Deposit Option: Bajaj Finance also offers Systematic Deposit Plan where you can plan the number of deposits ranging from 6 to 48 numbers within a tenor of 5 years. The interest rate for each deposit in an SDP investment is the rate prevailing on the date of the deposit.
  • Rate of interest: Rate that is currently specified by the company is already fixed on the FD calculator; you just need to work on other parameters tenor and payout and the output will change accordingly. You can observe with increase in terms of tenor, the rate of interest also increases.

Steps to follow to calculate FD interest earnings using the FD Calculator

  1. What Customer Category do you come in? 

Choose the customer category that you fall into to get the right interest rate as it is an automated fill-in. New customer, Existing or Senior Citizen rates differ. 

Annual rate of interest valid for deposits up to Rs.5 crore (w.e.f 04 Jul 2020)

Senior citizens can avail an additional 0.25% interest rate. Returning customers receive an additional 0.10% for renewal. While customers who choose to make an online investment also get an additional 0.10% interest rate.

  1. The calculator will give the payout amounts below the lump sum maturity amount. It will show the monthly, quarterly and bi-annual payout as well so you can make an informed decision.
  2. Enter the principal amount/investment amount which can range from Rs 25,000 onwards up to Rs. 2 crores.

While investors tend to look at tax saving FDs as a means to earning higher, you can just as easily look at building upon highly lucrative fixed deposit with laddering and Systematic Deposit Plan to earn higher interest rates with Bajaj Finance FD.