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A fixed deposit is an investment of your savings to earn a higher rate of return than a regular savings account. A bank Fixed Deposit is considered a safe investment option with the least amount of risk and highest form of liquidity. It is offered by banks and NBFCs (Non-Banking Financial Companies). A fixed deposit has the lowest risk in the portfolio of investment. Money is invested in a fixed deposit with a lock-in period and interest is given either at the end of the maturity date or as a regular payout. Investing in Fixed Deposit is a very smooth process and can be done at the tip of your fingers.

Parking your investment in the correct Fixed Deposit in 2021 will ensure high fixed deposit returns on maturity and also a choice of regular interest payouts throughout the chosen tenure. To ensure high returns you must look for a Fixed Deposit scheme with high-interest rate payouts before opening a new fixed deposit account or renewing an existing one

You need to go through **Fixed Deposit schemes** of different banks and select the one as per your needs and requirements. Bajaj Finance Fixed Deposit is said to have one of the highest returns with an interest rate of up to 6.75%. Hence, Bajaj Finance Fixed Deposit is the best option with highest interest rates.

The principal amount is the money you invest in the Fixed Deposit. Interest is the amount of money you have earned by investing the principal amount for a fixed period of time with a given interest rate. The way you receive your amount completely depends on the type of Fixed Deposit you invest in. Both types of Fixed Deposit gives you different final amount

A cumulative Fixed Deposit scheme on the other hand is an option where interest is payable at the time of maturity along with the principal.

The amount, in this case, is compounded annually. It is a perfect fit for someone who does not require periodic interest payouts.

A non-cumulative Fixed Deposit scheme is an option where the interest is payable on a monthly, quarterly, half-yearly, and yearly basis. This kind of option is designed to suit someone who needs an interest payout periodically.

Bajaj Finance Fixed Deposit Calculator can help you simply determine the Fixed Deposit maturity amount. You will need to follow a few simple steps to check the Fixed Deposit interest rate and Fixed Deposit maturity amount. Firstly, you will need to go to the Bajaj Finance Fixed Deposit interest Calculator and choose the type of customer you are. Then put in the FD type (cumulative or non-cumulative) and the amount of your principal and the tenor.

The final amount of interest and your total amount earned at maturity will be displayed on the screen. The Bajaj Finance Fixed Deposit Calculator is very easy to use. You need to put in the fixed Deposit amount and the tenor to calculate the amount receivable on maturity. It is also useful in calculating both cumulative and non-cumulative payouts. The returns on your fixed deposit investments are calculated using your interest rate and frequency of interest payouts.

## What is the Bajaj Finance Fixed Deposit interest rate calculator?

Before you invest your money in a fixed deposit, you need to determine the amount of money that you will receive when the Fixed Deposit reaches its maturity. This is where the Bajaj Finance Fixed Deposit is very useful.

## How does Bajaj Finance Fixed Deposit calculator work?

The **fixed deposit calculator** is very easy to use. You need to put in the fixed Deposit amount and the tenor to calculate the amount receivable on maturity. It is also useful in calculating both cumulative and non-cumulative payouts.

The returns on your fixed deposit investments are calculated using your interest rate and frequency of interest payouts. The interest rates for Fixed Deposits are compounded periodically and the formula supporting the FD interest rates calculator is put below:

A=P(1+r/n)^n*t

Where,

A is the amount on maturity

P is the principal amount

r is interest rate

t is the number of years

N is the frequency of compounding

To understand this better, let’s take an example of a senior citizen applying for Fixed Deposit. Suppose the senior citizen invests Rs 1 lakh in a fixed deposit for 3 years at an interest rate of 6.75%. This investment is compounded annually.

## As per the formula provided then, here is the calculation:

A= 1,00,000*{[1+(0.0675/1)]^(3)}

A= 1,00,000*1.21648

A= 1,21,648

## Bajaj Finance also calculates the FD effective interest

Your interest income and yield of your Fixed Deposit is influenced by the effective interest rate on your deposit. The following formula is used to calculate the effective annual interest rate.

Effective Rate = (1 + Nominal Rate / n) n-1

Here,

N is the number of periods per year

Let’s say for example, the annual interest rate is 10%. When the interest rate is compounded annually, it will turn out to be 10%. But if it is compounded quarterly, the effective interest rate would be 14.48%

So the next time you plan to invest in Bajaj Finance Fixed Deposit, you can use the Bajaj Finance Fixed Deposit Calculator to determine the best Fixed Deposit type and tenor for your needs.