# How to Calculate the FD Interest Amount?

FD (Fixed deposit) is a type of term deposit in which a lump sum of money is deposited by the investor with a bank, post office or an NBFC. An FD account ensures a higher rate of interest as compared to a regular savings account.

However, FD interest rates vary from banks to banks and NBFCs to NBFCs. Although NBFCs like Bajaj Finance offer a higher rate of interest in comparison to Banks.

Apart from this, tax saver FDs help you get a tax deduction under section 80C of the Indian Income Tax Act, 1961. Any investor can claim a deduction of a maximum of Rs.1. 5 lakh by investing in tax saver fixed deposits.

## Calculation of FD interest amount

Your FD interest amount i.e the returns on your Fixed Deposit is dependent on the following factors:

• Principle amount or deposit: High interest comes from high deposits.
• Deposit tenor: Longer the tenor higher would be the interest.
• Rate of interest: A high percentage of interest rate offers a big amount of interest.
• Type of deposit (Cumulative or non-cumulative): Cumulative FDs are preferred for greater interest.
• Frequency of interest payout: You can compound your interest on per month, quarterly, half-yearly or on an annual basis with Bajaj Finance Fixed Deposits. However, compounding your interest rates frequently might decrease the amount of interest.
• Type of customer (Senior citizen, new and existing customer): Senior citizens are favoured over regular customers and get higher FD interest rates.

Since there are these many factors to be considered, an online FD Calculator is highly recommended for easy calculation of your FD interest amount. It also provides you with the total maturity amount saving your time involved in the manual work.

## Fixed Deposit Calculator

Bajaj Finance Fixed Deposit Calculator is an online tool designed to help you determine your FD interest and maturity amount in only a couple of minutes. Besides, it also helps you calculate and compare your receivable interest amount conditioned to different combinations of deposit amount, tenure and interest payment frequency.

## How can you utilize Bajaj Finance FD Calculator?

Using an FD calculator is a very simple process. All you need to do is;

1. Choose your Customer type: New Customer, Existing Loan Customer or Senior Citizen
2. Select the type of Deposit: Cumulative or Non-cumulative.
4. Choose the tenure of the deposit

And voila! You get to know your exact maturity and interest amount for the particular combination of information you entered. It is a great way of determining your returns even before you start investing.

## How can you utilize an FD calculator to anticipate and plan your future finances well?

• Take a well-informed decision: With the help of an FD calculator, you can differentiate the FD interest rates offered by different banks & NBFCs. You can easily comprehend which bank provides the best interest on tenure chosen by you and thus make sure you get the best out of it. An FD calculator would not only help you in saving time but would also help you plan efficiently by knowing your exact returns.
• Ladder up your fixed deposits efficiently: It is always recommended to spread your savings in more than one FD at a given time. Different FDs with different tenors help you fulfil your different goals. And to figure out how much you must-have for achieving a particular goal you can utilise an FD calculator. Investors with the help of an FD calculator can easily choose tenures & principles of FD to fulfil their goals.
• Choose a variant between the cumulative and non-cumulative option: A lump sum amount will be received after the maturity in case of a cumulative option whereas for non-cumulative FDs you get fixed interval payout. Interest earned in a Cumulative FDs will be higher than a non-cumulative one because of the power of compounding.

All things said and done, hope this article well concludes all the factors responsible for the calculation of your FD interest amount. And you can utilise the tips above to make a well-informed financial decision using Bajaj Finance Fixed Deposit Calculator.

FD (Fixed deposit) is a type of term deposit in which a lump sum of money is deposited by the investor with a bank, post office or an NBFC. An FD account ensures a higher rate of interest as compared to a regular savings account. However, FD interest rates vary from banks to banks and NBFCs to NBFCs. Calculation of FD interest amount is dependent on the following factors:

• Principle amount or deposit
• Deposit tenor
• Rate of interest
• Type of deposit i.e Cumulative or non-cumulative
• Frequency of interest payout
• Type of customer i.e Senior citizen, new and existing customer

Since there are these many factors to be considered, an online FD Calculator is highly recommended for an easy calculation of your FD interest amount. A Fixed Deposit Calculator is an online tool designed to help you determine your FD interest and maturity amount in only a couple of minutes. It is very simple to use and helps you make a well-informed financial decision knowing your exact returns.

Author Bio:

Gaurav Khanna is an experienced financial advisor, digital marketer, and writer who is well known for his ability to predict market trends. Check out his blog at Highlight Story.

### One Comment

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