How Fixed Deposit Calculator Helps You Avail Maximum Output?

By Sahil Arora - December 06, 2018

Soon after you start earning a stable income, you might look for measures to save money. Saving money can help you get financial aid during a rainy day. But, growing your savings can simply add up to your savings. Investing money in the right place can give you higher returns with added benefits like high interest rates and flexible tenor. Fixed Deposit (FD) is known to be one of the most secure investments that might not give you higher returns compared to other investment vehicles like mutual funds and bonds but will provide you with guaranteed returns from your investment. FD is not a volatile investment, unlike other investments due to which you can avail maximum benefits from your investments. FD Calculator is provided by almost all financial providers that can assist you in your investment procedure.

How Does an FD Calculator Work?

The FD Calculator helps you in determining the maturity amount and the FD interest rate that will be applied to your investment. The formula used to calculate FD returns are:
A = P (1 + r/4/100) ^ (4*n) and A = P (1 + r/25)4n


A = Maturity Amount
P = Deposit Amount
n = Compounded Interest Frequency

You need not calculate your interest rates and returns manually. You can use the online FD calculator by providing a few information like the customer type, principal amount, type of FD, and the FD tenor.

Customer Type

If you invest in FD from prominent Non-Banking Financial Companies like Bajaj Finance, you get customized interest rates based on the type of customer you are. For existing customers and senior citizens, Bajaj Finance offers higher FD interest rates. The interest rates range from 7.72 to 9.10 which is amongst the top interest rates offered by financial institutions in India.

Principal Amount

The principal amount that you decide to deposit in your FD account highly determines your FD returns. The higher your deposit amount will be, higher will be the rate of interest resulting in higher yields from your investment

Type of FD

There are two types of FD viz. Cumulative and Non-Cumulative.

Non-Cumulative FD

In this type of fixed deposit, the interest is paid out monthly, quarterly, bi-annually, or annually. You can select the frequency of your interest payout as per your convenience and requirement.

Cumulative FD

The interest rate in a cumulative FD is paid out in a lump sum amount at the maturity of the account or after completion of one year. Experts’ advice to opt for a cumulative FD to gain high returns from investment.

FD Tenor

There is a facility to choose your tenor flexibly from 12 months to 60 months. You can invest a sum as low as Rs. 25,000 for a tenor of your choice. Ideally, greater the FD tenor, higher will be the returns from your investment.


If you invest in Bajaj Finance, you have an additional choice to choose the type of interest rate from fixed and floating interest rates. If you want high yields from your investment with higher chances of returns compared to other market investments, you can choose for a floating interest rate. However, these returns are volatile in nature due to which you cannot assure guaranteed returns from your investments. If you opt for fixed interest rates, you can ensure guaranteed returns as per your eligibility.

Benefits of FD Calculator on Investments

Since you can calculate the returns from your investment online, you can use the FD calculator to estimate your returns and decide the principal amount based on your financial goals. You can also ladder your investments by opting for multiple FDs with different tenor to maintain liquidity from your investment.

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