If you don’t know where to invest money but want to earn a huge corpus from your savings without subjecting it to market risks then fixed deposits can be your go-to instrument. Also, if you are interested in knowing the maturity value of your investment after a particular period then it is possible because fixed deposits grow at a fixed rate.
A simple method to calculate the returns is by utilizing an online fixed deposit calculator. You do not require any technical skills or knowledge about the interest calculation formula as the FD calculator does all the calculations automatically with the help of its inbuilt algorithm.
While using an FD return calculator, you can follow these instructions:
Visit the website of the financier that offers a particular FD plan that you are interested in. Enter values like principal amount, tenor, and pick your preferred FD type i.e. cumulative or non-cumulative FD.
Some finance companies and banks offer a tad higher FD rate to some customers. For example, some financiers offer an extra FD rate to senior citizens. Therefore, you must be sure about your customer category and choose it accurately before entering the other values.
Once you submit all the values, you can click on the ‘Calculate’ button and the calculator will show your returns and interest earnings accordingly. If you have selected the non-cumulative FD then you will be able to see the periodic interest payouts.
Why use an FD calculator?
An FD calculator should be used for the following reasons:
For avoiding errors
As the manual FD calculation formula is complex, you might make some errors while calculating the interest. By using an FD calculator, you can avoid such errors and calculate the interest and returns precisely.
Planning finances
The interest you earn from FDs is taxable and therefore, you can use this online tool to check whether your earnings cross the limits beyond which the taxes are not exempted.
As an FD calculator shows the kind of returns you will get at maturity, you can use it for reaching your financial goals. Also, if you need a fixed amount every month then you can see whether a specific non-cumulative FD is good enough to generate the required amount as an interest payout.
Exploring the current FD rates
One of the easiest ways to explore the current FD rates in the market is by using a fixed deposit return calculator. For that, you will need to visit the FD calculators of various financiers and compare the interest rates, tenor options, etc. provided by them.
Finding the highest FD rates is also important because the current FD rates are not quite high. Therefore, you will need to do some research before investing in an FD plan.
If you are aware of the current FD rates, you will see that the bank FD rates have been lowered quite a bit. Therefore, fixed deposit plans offered by NBFCs can prove to be a smarter choice as they are offering better interest rates than bank FDs.
Bajaj Finance FD is one of the best options in these times as it is offering an FD interest rate of up to 6.85%. A higher interest rate along with convenient investment options and the latest FD features enable you to earn good returns post maturity.
Investing via an online FD form can improve your returns as a 0.10% extra FD rate is provided for those who select the online investment option. Senior citizens can earn more as they get a 0.25% more FD rate than regular citizens. To check the returns across various financiers, let’s look at an example:
Suppose that you want to invest Rs. 300000 for 5 years. The below table shows the returns offered by Bajaj Finance FD as per the specific customer categories:
| Customer type | Principal Amount | Tenure | Rate of interest | Interest Earnings | Maturity Value |
| Senior citizens | Rs. 300000 | 5 | 6.85% | Rs. 117824 | Rs. 417824 |
| Non-seniors (offline investment) | Rs. 300000 | 5 | 6.60% | Rs. 112959 | Rs. 412959 |
| Non-seniors (online investment) | Rs. 300000 | 5 | 6.70% | Rs. 114900 | Rs. 414900 |
Bajaj Finance FD is stable as it has received high ratings for being a secure investment by credit rating institutions like ICRA and CRISIL.
