FD Calculator: Best Fixed Deposit Interest Rate in India 2020

Planned Investments are always helpful in the long run. Our investment goals define our future capabilities and potentials.  Deposit schemes such as fixed deposits, if strategically planned, yield the best results. Besides, their stability and risk-free nature make them more attractive.  

What Are Fixed Deposits?

Also known as term deposits, fixed deposits are safe investment options offered by all the banks and NBFCs.  They offer good interest rates and the money is invested for a fixed period of time at a predetermined rate of interest.

To calculate how much interest can be earned on any investment, fixed deposit calculators are used quite often. Let us know more about these FD calculators.

What Are FD Calculators?

Fixed deposit calculators have been designed to determine the amount of money that can be expected as returns if a certain amount is invested in any term deposit schemes at a particular rate of interest. 

How To Use FD Calculator?

Calculating the maturity amount of fixed Deposits manually can be a tedious task and may generate inaccurate results. Nowadays, online FD calculators have simplified this task and have shortened the entire process. The FD calculator available on the website of Bajaj Finance is quite helpful and very accurate.

Just click on the type of customer you are, enter the details, select the expected amount, and the tenure and you get the desired plan according to your investment goals. 

Also, for people living abroad, the option for FD rate calculators or FD return calculators is there which gives them easy access to different investment plans.

Just choose which plan suits you and go for it, and the FD calculator makes it very easy and eliminates all your doubts regarding your future investment plans.

These FD calculators perform calculations based on two deposit scheme options- cumulative non-cumulative deposit schemes.

In Cumulative deposit schemes, the interest rate is calculated annually and added to the maturity amount.

In Non-cumulative fixed deposit schemes, the interest rates are payable either monthly, quarterly or half-yearly or annually, depending upon which option you choose. 

What is the formula?

The Fixed deposit maturity amount is calculated by the given formula –

   A=P (1+r/n)^n*t

Here, 

A is the maturity value

P is the Principal amount to be invested

r is the interest rate

t is the tenure or the period of investing

n is the compound interest frequency

What Are The Benefits Of Fixed Deposit Calculators?

The following are the advantages of using an FD calculator:-

  • An automatic and efficient FD interest rate calculator helps save time.
  • Latest software to enable error-free processing.
  • Free of cost calculators and can perform as many computations as required.
  • Suitable tables for comparing different fixed deposit schemes based on their interest rates and tenures are provided.

What Factors Affect the Interest Rates Of The Fixed Deposit Schemes

All the financial institutions have some or the other difference in their interest rates for various deposit schemes. Mentioned below are some of the key differences which you may see among them:-

  • Term of deposit – Almost all the banks and NBFCs provide a wide range of period of deposit to its customers, stretched from 7 days to 10 years. The longer the investment term, the higher the interest rate.
  • Economic conditions – The sudden rise and fall in the growth rate of the economy is a big factor when deciding the interest rates.  Changes in the Repo rate and inflation can severely affect the interest rates offered by the financial institutions. 

However, even amidst falling FD interest rates, you can earn high returns with a corporate FD such as Bajaj Finance FD which is currently offering interest rates up to 7.35%– one of the highest in India.

Bank FD rates vary between 4-6%, depending upon the tenor. Whereas post office FD interest rate is up to 6.7%. 

You can also use the multi-deposit facility from Bajaj Finance and invest in multiple FDs having different tenors and interest rates. This way, you can gain maximum returns by averaging of fluctuating interest rates. 

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