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BAJAJ FD Calculator

Published on June 15, 2022
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A fixed deposit, often known as an FD, is a type of investment that banks and non-banking financial organisations (NBFCs) give to their customers to help them save money.

Through an FD account, one can invest a large sum of money for a set tenure at a specified rate of interest. At the completion of the tenure, you will receive the lump sum payment plus interest, which is a good money-saving plan.

Fixed deposit accounts provide a variety of interest rates to choose from.

Bajaj Finance is a non-banking financial company based in Pune that provides a wide range of financial services. The investor can use the Bajaj Finance FD Calculator to find out about the interest rate and estimate returns on investment.

It offers the most enticing interest rates, which are frequently higher than those offered by traditional banks.

BAJAJ Finance FD Calculator (2022)

Features of a Fixed Deposit Account

To understand a fixed deposit, you must first understand its key features. The following are the most significant:

1. Assured Returns

A fixed deposit's returns are guaranteed. You will receive the same rate of interest that was agreed upon initially. This is not the case with market-led assets, which provide returns depending on market interest rate changes.

The account holder gets the same rate of interest that was agreed upon when setting the fixed deposit. As a result, the fixed deposit is safer than other types of investments.

2. Rate of Interest

A fixed deposit's interest rate fluctuates depending on the term you select. The interest rate is fixed for the entire duration of the fixed deposit. The interest rate of a 1-year Bajaj Fixed Deposit is around 7.45% per annum.

3. Flexible Tenures

You may invest in a Bajaj Fixed Deposit for a period ranging from 12 to 60 months. For a steady income, you can also choose monthly or quarterly interest payments.

4. Return on Investment

The amount of interest you earn on a fixed deposit is determined by the FD's maturity duration, or term. You will earn more interest if you have a longer tenure. With this FD, you also get the benefit of compounding.

5. Loan against FD

There are also options available to take out a loan against the fixed deposit. This benefit prevents the FD from being closed prematurely.

How can the FD calculator help you?

It's never been easier to develop a portfolio in line with your financial goals by investing in a good fixed deposit. The Bajaj Finance FD Calculator handles the groundwork for you by projecting the future financials of any Bajaj Fixed Deposit.

The Bajaj Finance FD interest Calculator reveals the applied interest rate, total interest accrued, and maturity sum after a few simple inputs. These numbers are crucial for tax and financial planning.

Because future investment financials are known in advance, it is easier to plan a strategy to accomplish life goals. It's no surprise that the millennial generation makes extensive use of digital tools to make informed investing decisions.

An Example of FD Calculation

The Bajaj FD calculator Online uses the formula as mentioned below:

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

  • A is the receivable amount.

  • P is the investment amount.

  • r is the interest rate.

  • n is the compound rate of the interest.

  • t is the tenure.

Here is a simple example to help you understand the FD calculation.

Investment amount (P)= Rs. 50,000

Tenure (t) = 5 years.

Interest rate (r)  = 6.7%

Compound rate (n) = 1

Thus, the calculation will be

A = 50,000 (1+6.7/1) ^1*5

The result will be Rs. 69,150.

Different Types of FD

Customers can open fixed deposit accounts based on their needs, budget, and tenure. It's worth noting that each type of fixed deposit has its own set of perks, drawbacks, and features.

As a result, a consumer should think about what kind of advantages a fixed deposit might provide.

Normal Fixed Deposits

Normal fixed deposits are investment plans in which you invest your desired amount of money for a set length of time at a set interest rate.

The investment or tenure time can be anything from seven days to ten years. The rate of interest offered is determined by the length of time invested as well as the financial institution that provides this option.

Tax-Saving Fixed Deposits

These fixed deposits are offered by most of the major banking and financial institutions. Tax-saving fixed deposits have a five-year lock-in term, which means you can't take your money out early.

Furthermore, tax-saving FDs do not qualify for loan or overdraft facilities. However, under Section 80C of the Income Tax Act, you can claim tax exemptions of up to Rs 1.5 lakh.

Fixed Deposits for Senior Citizens

Banks and NBFCs give a greater interest rate on FDs to those over the age of 60 than to other investors. The interest rate is usually up by 25-50 basis points (0.25-0.50%).

Senior citizen fixed deposits also come with an added tax benefit. If the value of the FD does not exceed Rs. 50,000 per year, there is no tax deducted at the source. This advantage is not available in other investment alternatives for senior citizens.

The TDS deduction limit for people who are not senior citizens is $40,000 per year. As a senior citizen, investing in FDs will minimise your overall tax burden and hence boost your earnings.

Cumulative Fixed Deposits

The term "cumulative" means the collection of assets. Similarly, a cumulative fixed deposit is one in which interest is compounded or collected until the maturity period ends.

The interest generated over the course of a year or cycle is either reinvested or added to the preceding investment, increasing the principal amount. It raises the level of the rate of interest.

Also, compounding is used to its full potential in a cumulative fixed deposit. When your FD matures, you will get the maturity amount, which is equal to the sum of your initial deposit plus interest earned.

Non-Cumulative Fixed Deposits

The interest earned on a non-cumulative fixed deposit is paid to the depositor on a regular basis. Interest on a Non-Cumulative Fixed Deposit is paid at intervals. This interval can be monthly, quarterly, or semi-annually.

Because the interest is not withheld by the bank, this type of FD provides a consistent payout to investors. Since the power of compounding is not fully achieved, it pays less interest than cumulative FD.


Flexi Fixed Deposits

Your savings account is connected to a flexible fixed deposit. You can direct your bank to periodically transfer any amount above a predetermined balance to a fixed deposit using its auto sweep-in feature.

For example, if you desire to keep a monthly balance of Rs. 20,000, any excess will be moved to a savings account. If your balance falls below Rs. 20,000, the bank will liquidate a portion of your FD to keep your account in good standing.

It provides you with liquidity and investment opportunities.

Flexi-deposit interest rates are greater than savings account interest rates but lower than fixed deposit interest rates.

Benefits of the FD Calculator

The following are some of the main benefits of using the FD Calculator:

  • It is an online tool and can be accessed at any time and from any location through the company's official web portal and many aggregators.

  • Since it's an automatic calculator, there's no room for error.

  • It is user-friendly and easy to use, requiring only a few basic inputs to produce the desired results.

  • Time is saved by eliminating time-consuming calculations for different tenures, amounts, and rates.

  • It's quick and precise, saving the user from time-consuming calculations that may or may not be error-free.

  • The service is given without charge, and there is no limit on how many times it can be used.

  • The amount of interest accrued is subject to taxation under the current regulations, which are governed by the Income Tax Act of 1961.

  • Customers can use the tool several times and compare returns for various combinations of FD rates, tenure, and amount because it is free.

  • The investor can devise a plan to better manage his or her finances.

How to Use FD Calculator Online?

Follow the procedures outlined below to use the FD calculator:

  • In the first section, enter the deposit amount (Fixed Deposit Amount).

  • In the next field, type in the interest rate (Rate of Interest).

  • Enter the length of time or tenure you are considering (the period for which you want FD to be active).

  • You will have the option of entering the FD duration in either months or years.

  • Click on the "Calculate" button. In the section below the FD Calculator tool, the expected maturity amount will be provided. Besides the maturity amount, you will also see t he total interest.

Conclusion

Investing in an FD requires establishing the budget and making it work to achieve the desired financial goals.

The fixed deposit calculator aids in the comparison of different types of FD plans offered by banks and other financial institutions.

It is possible to determine which scheme gives the best returns throughout the specified time period.

A good fixed deposit offers risk-free and guaranteed earnings. There is still a significant risk when investing in the stock market (such as through equity mutual funds).

To a certain extent, your FD investment can help absorb losses. Before you go on to use the Bajaj Finance FD Calculator, make sure you know how much you can deposit into your FD account and for how long.

Frequently Asked Questions

1. How can I close my FD in Bajaj?

The first step in closing a Bajaj Finserv FD account is to complete an FD Account Closure Form. You can do this by going to your local bank, obtaining an FD account closure form, and correctly filling it out.

This closure form is to be submitted to the branch manager or officer-in-charge.


2. Is Bajaj Finance good for FDs?

You can consider a Bajaj Finance Fixed Deposit if you're seeking a wise investment solution that will provide you with the best return on your money. On your deposits, you can earn attractive interest rates of up to 7.45% each year.


3. What is the rate of interest on FD with Bajaj Finserv?

Bajaj Finance offers FD interest rates of up to 7.45% per annum. The interest rate for people under 60 years old is up to 7.20% each year, while senior citizens get an extra 0.25% per year.


4. How is Bajaj FD?

On a group level, FDs represent 19% of Bajaj Finance's liabilities. Bajaj Finance FDs also have CRISIL's FAAA rating and ICRA's MAAA rating, indicating the greatest level of capital safety.

Bajaj Finance FDs have somewhat higher interest rates than bank FDs. With effect from May 10, the highest rate (for senior citizens) will be 7.45%.


5. Which bank is best for FD 2022?

For a term of 5 years or more, IDFC Bank gives the highest FD interest rate of 6.25% p.a. to the general public. The interest rate for senior citizens might reach 6.75%.

Axis Bank offers the second-highest interest rate of 5.75% p.a. for loans with a term of 5 years or more.


6. Which bank has the highest FD rates?

Bank

Interest Rate

Senior Citizen Interest Rate

Tenure

IDFC Bank

2.50%-6.25%

3.00%-6.75%

12-60 months

HDFC Bank

2.50%-5.60%

3.00%-6.35%

33-99 months

ICICI Bank

2.50%-5.50%

3%-6.30%

7 days -10 years

AXIS Bank

2.50%-5.75%

2.50%-6.50%

7 days-10 years

PNB Bank

2.90%-5.25%

3.40%-5.75%

1-10 years


7. Which bank has the best FD rates?

Currently, IDFC Bank offers the best fixed deposit rates. It offers an interest rate of 6.25% per annum on a fixed deposit held for 5 years or more. Some other banks that offer high FD rates are HDFC Bank, ICICI Bank, Bajaj Finance, Axis Bank, and PNB Bank.

Ankur Aggarwal

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About the Author

Hi all, I am Ankur Aggarwal – Digital Marketer, Entrepreneur, Traveller, Blogger, and Foodie. Have been blogging since 2010. In 2016 I scored 99.2 percentile in XAT Exam for MBA, left that to pursue my Online business dreams.
The purpose of ankuraggarwal.in is to pass on 100% accurate, genuine and FREE information on Personal Finance, Entrepreneurship, Investing, Career, and Learning Digital Marketing Online. Know more about me here: About Ankur Aggarwal

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