Various financial institutions offer online tools and services to assist their customers. These tools are meant to help customers make informed decisions with their investments. Online calculators such as the fixed deposit (FD) calculator are provided to help account holders calculate and plan their finances as per the FD returns generated. It provides estimates of your fixed deposit monthly returns and maturity value, as applicable. It helps assess your planned investment in seconds.
The maturity value and returns of the deposited amount depend primarily on the interest rate. Based on the recurrence of investment and returns, fixed deposits are of 2 kinds –
- Cumulative fixed deposit.
- Non-cumulative fixed deposit.
Monthly FD interest does not apply cumulatively because interest in such deposits are compounded quarterly or annually and paid only after the maturity period. In non-cumulative fixed deposits, returns on interest are paid out by the financial institution on monthly, quarterly, half-yearly or yearly, as per your discretion.
An investor has two ways to find out about his or her monthly interest estimates as well as check the maturity amount of fixed deposits –
- By contacting the authorities of concerned financial institution.
- Fixed deposit calculator online.
Non-cumulative FDs help you earn a regular income from your savings and utilize them to meet your daily expenses. Thus, the investor feels the need to stay updated about the monthly interest returns on his/her FD. The most convenient mode of doing it is by using the fixed deposit calculator. Financial institutions such as Bajaj Finance have incorporated this online tool in their official websites.
How to use the fixed deposit calculator to calculate monthly FD interest?
The online tool to calculate FD returns is free and accessible for all investors. The FD account holder only has to enter the basic details regarding his investment understand the generated returns. These are the steps to calculate your monthly return on FD returns –
- Visit the website of the concerned bank or NBFC, and you will find the online fixed deposit calculator on their page.
- Among the given options, select your ‘Customer Type’, specifying whether you are a new customer, existing customer, senior citizen or an employee of that particular financial institution. Interest rates offered are different for each.
- Choose the type of FD you want to opt for (cumulative or non-cumulative). Monthly FD interest is applicable only in non-cumulative FD investment.
- Enter the principal amount you wish to invest — larger the amount devoted by you, the higher the FD rates.
- Select the tenor for which you are planning to invest the amount. The tenor has to be between 12 months and 60 months.
The FD calculator automatically applies the stipulated interest rates as per the slab and gives you estimates of your monthly interest returns (for non-cumulative fixed deposit) and maturity value (for cumulative fixed deposit). You can insert various combinations of principal and tenor to tally the changes in estimates.
Once you have tallied the returns as per FD rates and other variables, you can determine how much and for how long you wish to invest. You can also apply for your FD account online itself after that.
How to open a fixed deposit account online?
Financial institutions such as Bajaj Finance enable you to apply online for FD account opening. The necessary steps are –
- Visit the specific website and fill up the online application form for an FD account, providing all required details.
- Deposit the money through net banking, cheque, NEFT or RTGS.
- Download the application form filled by you by selecting ’Save as PDF’. A representative from the financial institution will be assigned to collect your documents.
- Get a hard copy of your application.
- Sign on your application form and affix your photographs as directed.
- Organize your KYC documents (Aadhaar card, PAN card, voter ID card, passport, driving license, etc.) for the verification process.
- Submit required documents with a CTS compliant cheque to the representative.
Your fixed deposit will be account will be activated post verification.
The online fixed deposit calculator helps you to get started with the process conveniently with a pre-estimated and well-deduced investment plan. With its help, investors can plan their future finances in tandem with the returns generated.