What is the method of calculating interest rates for fixed deposits?

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calculating interest rates

One of the most important aspects of our lives is to build wealth. A financially stable life offers peace, happiness and security for you and your loved ones. It is a well-known fact that many experts are warning about the upcoming recession, and some even claim that it has already started, so now is the best time to invest your buck for a safe and sound future. Many companies have already started laying off their employees for the same reason. 

It’s been four years since I began hustling, and believe me, a Fixed Deposit is one of the sought-after investments in life. Just experiment with an FD calculator, know what suits you best, and your money is in good hands. Due to higher returns, flexibility and easy withdrawal, you can’t miss FD while planning your investments. 

What is a Fixed Deposit?

Also known as Term deposits, a Fixed Deposit or FD is a scheme where an individual puts a lump sum amount in the bank for a fixed amount of time at an agreed interest rate with the organization. Furthermore, when the tenure ends, the individual receives the amount invested along with the compound interest. 

Unlike other unstable investments, such as stocks, the returns in FD are guaranteed. So, don’t worry; your return will not depend on the market or other factors. 

(Pro Tip: Use a FD Interest Rate Calculator Online before investing.)

What are the benefits of a Fixed Deposit?

For years, this type of investment has been the most desired one for Indians. This is because, it has evolved into a highly versatile and flexible financial product offering several benefits. Moreover, when you use a fixed deposit calculator online before investing, you’ll have the exact figures of your return so that you can plan accordingly.  

  • Flexible Tenure

Starting from a single month to up to ten years, an FD can be taken for a tenure of your choice and convenience. For example, suppose you have planned a significant event in the coming ten years; then, you can have an FD to meet your financial requirements by then.

  • Assured Returns 

When you use the FD Interest Rate Calculator Online, you’ll get to know that it remains constant throughout your tenure. This way, you know exactly what you’ll be getting in return. So, as I mentioned, even if the market fluctuates or not, your returns won’t be affected.

  • Easily withdrawable

The amount invested in FD can be withdrawn at any time, whenever you want. But everything comes with a price. So, if you are planning to withdraw money before the tenure ends, remember that a minor penalty is involved.

Here is a step-by-step guide on how to use a fixed deposit calculator online – 

  1. Download the Bajaj Finserv app from the App Store (iPhone) or Play Store (Android).
  2. Sign up after entering your details
  3. On the home page, click on three bars on the top right. 
  4. Choose the ‘Try our Calculators’ option.
  5. Go to ‘Deposits Calculators’ and choose ‘Fixed Deposit Interest Calculator.
  6. Fill in the details and experiment as per your requirement.

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