If you are investing your hard-earned money your primary goal should be to get a good return on investment. It is only then your money will be working for you. However, choosing a sound tool while you are at it is also crucial. The Bajaj Finance FD is an investment avenue that offers dual advantages. Investors can get the best FD interest rates available in the market with the complete safety of funds.
To make profitable FD investment decisions, you must know when to invest for long and how much. The FD interest rates calculator offers insight into all these parameters. You can play around with these variables to come up with the required inputs for desired results.
How to use the FD interest rates calculator
Here is a step-by-step guide to using the Bajaj Finance online FD calculator effectively to make profitable investment decisions:
Step 1: Go to the official Bajaj Finance Fixed Deposit website
The first step is to visit the official Bajaj Finance FD website and click the ‘FD calculator’ tab.
Step 2: Choose the investor profile
The FD rates differ based on investors’ age. Investors above 60 years of age earn up to 0.25% p.a. more on the base rates.
Step 3: Decide the initial deposit amount
This is a crucial step as it will determine the returns at maturity. One should consider income, living expenses, financial goals, and liquidity requirements to decide the deposit amount.
Step 4: Determine the tenure
Longer tenures are recommended as one can earn more with the power of compounding resulting in higher yields. Bajaj Finance offers flexible tenures from 12-60 months. They also offer 6 special tenures (15, 18, 22, 30, 33, and 44 months) that have higher FD rates.
Step 5: Check the applicable interest rates
After plugging in the above-mentioned details, the applicable FD rates will appear on the screen.
Step 6: Determine the type of fixed deposit
Bajaj Finance offers two types of fixed deposits - cumulative and non-cumulative. The interest is compounded annually and paid at maturity in cumulative fixed deposits. In non-cumulative fixed deposits, the interest is paid out periodically (monthly, quarterly, half-yearly, or annually).
Step 7: Calculate the maturity amount
After putting in the above-mentioned details, one must click on the calculate button, and the online calculator will display the returns at maturity.
Step 8: Adjust variable components to get desired maturity amount
To check what combination gives maximum returns investors can play around with the variable components like the tenure, and deposit amount. This can help in making the right and profitable investment decisions in real time.
As you can see, the FD interest calculator is an insightful tool that enables investors to estimate the maturity amount even before putting their hard-earned money to work.
Another way of using the FD calculator to augment returns is by laddering FDs:
Laddering is an investment strategy used to optimise FD investments along with maintaining optimal liquidity. In this technique, you can invest in separate FDs for different tenures instead of locking away your funds in one single FD for a longer tenure. The FD interest rate calculator can help in implementing the laddering technique successfully. This technique gives you an upper hand with liquidity as well as the option of choosing to invest when the interest rates hike.
You can maximise your returns by using the FD calculator to fine-tune your investments to your goals and consider smart strategies like laddering to take full advantage of liquidity and high-interest rates.
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