April 16, 2017
One of the most popular form of investment in India is fixed deposit. It’s an investment that is made with banks or financial institutions for a certain period of time at a fixed interest rate. When you open a fixed deposit account and lock in a certain amount of money, you’re lending the money to the financial institution. The institution will give you the interest on the money for the period you’ve invested.
Before you make an investment as fixed deposit, it is necessary that you do a proper market research on it. It’ll help you to know all the terms and conditions about fixed deposit and rate of interest. This can vary between different banks and financial houses. You can know which bank offers the highest FD rates and open FD at the best company for fixed deposits in India.
Know How to Use Bajaj Finance Fixed Deposit Calculator
Once you decide the financial organisation where you will open your fixed deposit account, use of the FD maturity calculator. you can find this on the official website of the financial organisation. Using the FD interest calculator, Excel calculations aren’t necessary. you’ll know the exact amount of money when the fixed deposit matures. You’ll also know how much you stand to gain. This can also help you decide the amount that you should keep as fixed deposit.
You should be aware that any fixed deposit opened for a period of less than six months is calculated for simple interest. If you make the investment for more than six months, the interest on the amount is calculated using compound interest.
You should also know that the returns you get from fixed deposits are taxable. If you want to get tax benefits, you need to open a fixed deposit account available for getting tax benefits. So, when you open FD at the best interest available in India, you won’t receive any tax benefit on the interest. The return you receive on fixed deposit as returns is around 3.5% to 5 %.
How to Use Fixed Deposit Interest Calculator?
Using the fixed deposit interest calculator is pretty simple. It’s like a regular calculator. Enter in the necessary details such as principle, rate of interest, and tenure. This shows you how much you can gain at the end of the deposit period.
Using a fixed deposit calculator can help you make real time calculations and compare various fixed deposits. Apart from this, you can save valuable time and effort. This lets you do all the necessary calculations without having to worry about going to the bank.
Steps Involved in Using the FD calculator:
- You need to enter the amount you wish to invest as fixed deposit and know about the maturity amount. This is what you’d call the principal amount.
- Choose from the options provided for the tenure of the fixed deposit. You can choose from a variety of options such as yearly, half-yearly, monthly etc. according to your need.
- After this, enter the rate of interest the bank or financial institution is offering on fixed deposit with high rate of interest. This is the percentage the bank will offer you for locking in the money.
- After filling all the details on the FD calculator, start the calculation. The total amount you’re supposed to receive will get displayed instantly. The amount includes the principal amount along with the interest on the fixed deposit.
Once you’re aware of how much you can gain from a fixed deposit, you can go ahead and invest it. You can also plan out other investments based on what you can do to ensure that you have a diverse portfolio.