Bajaj Finance FD Calculator
The Bajaj Finance Fixed Deposit calculator is a digital tool designed to help users determine how much interest they will receive after the FD matures. Calculating how much interest will be compounded annually or after maturity is a time-consuming and difficult task. However, the FD calculator makes the task easier by giving you the results in a matter of seconds.
A fixed deposit is a financial instrument where an investor deposits a lump sum amount of money for a fixed period with a financial institution like a bank or a non-banking financial company (NBFC). The deposited money earns a fixed interest rate, which is higher than a regular savings account.
Generally, fixed deposits are classified into two types: non-cumulative fixed deposits and cumulative fixed deposits. In non-cumulative FDs, the interest is paid at regular intervals - monthly, quarterly, half-yearly, or yearly - as chosen by the investor. The principal amount is paid at the end of the investment tenure. In cumulative FDs, the interest is compounded and paid along with the principal amount at the end of the investment tenure.
How Does The Bajaj Finance Fixed Deposit Calculator Work?
The calculator uses the below formula to calculate the maturity for non-cumulative fixed deposits (simple interest formula).
Where,
M is the Maturity amount
P is the Principal amount that you deposit
r is the rate of interest per annum
t is the tenure in years
The calculator uses the below formula to calculate the interest for cumulative fixed deposits (compound interest formula).
Where,
M is the Maturity amount
P is the Principal amount that you deposit
r is the rate of interest per annum
n is the number of times the amount is compounded
t is the tenure in years
Example:
Ms. Rani is planning to put her inheritance of ₹7.2 lakhs into a fixed deposit. The interest rate offered by the FD is 7.35% per annum. The duration of the FD is 7 years. She wishes to receive her interest income once a year. Let’s use the calculator formula to calculate her interest income.
M = P + (P x t x r / 100)
M = 7,20,000 + (7,20,000 x 7 x 7.35/100)
M = 7,20,000 + (7,20,000 x 7 x 0.0735)
M = 7,20,000 + 3,70,440
M = ₹10,90,440
Interest = 10,90,440 - 7,20,000
Interest = ₹3,70,440
Interest payable every year = 3,70,440 / 7 = ₹52,920
So, if Ms. Rani puts ₹7.2 lakhs in a fixed deposit scheme, earning an annual interest of 7.35% for 7 years, she will receive a payout of ₹52,920 every year. She will receive her principal amount of ₹7.2 lakhs at the end of the tenure.
Let’s take the same example but this time, Ms. Rani chooses to receive her maturity amount at the end of the tenure, instead of choosing annual payouts. Here, we are using the compound interest formula.
M = P (1 + r/n) ^ (n x t)
M = 7,20,000 (1 + 0.0735)^(1 x 7)
M = 7,20,000 x (1.0735)^7
M = 7,20,000 x 1.6429121499915
M = ₹11,82,896.74
So, if Ms. Rani puts ₹7.2 lakhs in an FD scheme, earning 7.35% per annum for 7 years, she will earn a maturity amount of around ₹11.82 lakhs at the end of the tenure.
How To Use The Bajaj Finance Fixed Deposit Calculator?
The fixed deposit calculator is pretty straightforward to use. All you have to do is to follow the below steps.
- Choose whether you wish to receive your payout annually or at the end of the investment tenure.
- Key in the amount you wish to deposit in the scheme.
- Mention the interest rate of the scheme.
- Enter the tenure of the FD.
Once the above details are entered into the calculator, you can see the interest earned and maturity amount on the screen.
Benefits Of Using The Bajaj Finance Fixed Deposit Calculator
The following are some of the advantages of using an FD calculator.
- Get an accurate result for the fixed deposit interest at the maturity date.
- The calculator can help you compare the maturity amounts of various banks.
- The calculator can help calculate maturity amounts much faster than a spreadsheet.
- The calculator is both secure and free.