You have invested in a very high lucrative fixed deposit and are looking forward to receiving the amount on its maturity. But did you calculate the amount of return and how it got added up to your principal? You probably just read the details on the FD certificate, and hence you know it. Yet, the entire calculation is hazy to you. You will not be aware of the importance of different components of a fixed deposit which are important for it to be calculated.
Manipulating with these parameters can get you higher returns, and you can also plan your portfolio in a holistic manner. It will determine the tenor for which you are going to keep different amounts invested.
You can make use of the FD maturity amount calculator on various websites to know the exact maturity amount of your FDs. This is interesting because FD is the only instrument which can predict its maturity value. Other instruments are not designed in a way that you will know the exact return on investment before-hand. This predictability of returns makes FDs a go-to product.
The basic steps for calculating maturity value on an FD calculator will require you to input the following information –
- Principal or Deposit amount
- Interest Rate
- Frequency of Compounding – i.e., how many times is the interest calculated on principal
- Nature of FD – Cumulative or Non-Cumulative
- Tenor – Duration which determines for how many years the interest will be calculated
Using FD Calculator
You can calculate the maturity value of Bajaj Finance FD using the free online FD calculator available on the company website. You can decide the fixed deposit principal amount by adjusting the above mentioned parameters to achieve the desired maturity amount.
- Determine the customer category that you fall into – New customer, existing customer or senior citizen. This, in turn, determines your interest rate. Senior citizens will benefit with an additional 0.35% interest rate, and returning customers will get an additional 0.10% interest rate.
- Select the cumulative or non-cumulative option.
- Enter the principal amount which you wish to deposit.
Entering these details will automatically show the maturity amount along with interest earned. You can mix and match the tenor or deposit amount to see which combination gives you the maximum benefit.
- Optimizing tenor – You can choose tenor options ranging from 12 to 60 months. You can try various tenors to understand how it changes your maturity amount. Also, considering your desirable time period and aimed maturity amount, you can change the principal. Thus, by looking at different tenors, you can decide the best one as per your needs.
- Optimizing principal amount –The calculator will immediately tell you maturities on various combinations of principals and tenors. If you have extra cash, you can increase the deposit amount and gain higher interest.
Deciding the cumulative non-cumulative options will make you aware of the payout amounts as well as the final maturity you can expect to receive. A cumulative option will enable you to earn a higher return on investment as compared to non-cumulative option.
Bajaj Finance is an NBFC providing FD facility with security and assurance of ICRA and CRISIL ratings. The interest rates offered are highly beneficial at 8.65% (normal citizens) to 8.95% for senior citizens. The interest rates are 1-2% higher in comparison to the Bank FDs. With the current interest rates being offered on Bajaj Finance FD, you can earn a minimum ROI of 51%, which is not possible with bank FDs .
Manual calculation is something everyone is not comfortable with. Online calculators are a boon for investors as they give quick and accurate information. The user interface is simple. You can not only make quick decisions regarding your portfolio but you can be self-sufficient with the right tools. The pain and effort of hiring a financial planner can be done away with such tools.
