A fixed deposit is a reliable and stable income source for those who want to keep their savings safe while earning surplus returns. For guaranteed high returns, you just have to choose an FD that provides high-interest rates.
However, it is also important that you estimate your returns before investing in an FD. Predicting returns for investments like stocks and mutual funds is not possible because they are dependent on market conditions, whereas returns of fixed deposits can be calculated since they have a fixed interest rate throughout the FD tenor.
Let us see how to calculate the interest on an FD:
By using the FD interest rate formula
One way of calculating the interest is by using the interest rate formula as shown below:
M = P (1+r/n) ^ (nt)
Where M stands for the maturity amount i.e., your estimated earning
‘P’ is the amount that you have deposited in an FD i.e. your principal amount, ‘r’ is the interest rate, ‘n’ refers to the number of instances when the interest was compounded, and ‘t’ is the FD tenor.
By using the FD calculator
An online FD calculator lets you calculate the maturity amount of FD without doing any manual calculations. These days, banks and NBFCs are providing monthly interest calculators on their websites using which anyone can estimate the returns precisely. You only have to select your FD type, amount, and tenor as the tool automatically calculates the interest amount and maturity value.
Suppose you are investing in Bajaj Finance FD for five years and want to avail the option of monthly interest payout. The below table shows the monthly interest you can earn based on a particular invested amount:
|Principal in Rs.||The monthly payout for new customers||The monthly payout for senior citizens|
|1,00,000||Rs. 671||Rs. 698|
|5,00,000||Rs. 3354||Rs. 3488|
|10,00,000||Rs. 6710||Rs. 6980|
You can also use the monthly interest calculator to predict your monthly returns.
Grow your savings with high-paying FDs
If you want to grow your savings faster then you can think of the company FDs. However, all the company FDs do not have high ratings when it comes to stability and safety. Bajaj Finance FDs are rated highly with CRISIL’s FAAA/stable rating and ICRA’s MAAA/stable ratings. More than 2.5 lakh customers have opted for Bajaj Finance FDs and the total deposit book is over 16000 crores.
Bajaj Finance offers attractive interest rates up to 8.70% for senior citizens and up to 8.35% for non-seniors. Also, you get an additional 0.10% interest rate on renewing your FD. Moreover, you can opt for monthly, quarterly, yearly, or six-monthly interest payouts by booking a non-cumulative FD. Monthly interest payouts are suitable for those people who are looking for a regular income source.
Also, if you are not interested in periodic interest payouts then you can choose the cumulative fixed deposits that provide the total accumulated interest at the end of the FD tenor. Cumulative FDs are perfect for investors who want to build a huge corpus at the end of the tenor. The benefits like Best Fixed Deposit Interest Rates, flexible tenor and the choice of selecting between periodic and one-time interest payout make Bajaj Finance FD an ideal investment instrument to grow your savings.