Knowing the maturity amount and investment returns from your investments will help you decide on the investment options you want to choose for your portfolio. While this forecast is not a guarantee for a lot of schemes, it can be done without a doubt for FD investments using an FD calculator.
Knowing the earnings you can expect is important because whenever you invest in any financial instrument like a fixed deposit then your money stays locked in for a certain tenor. During this time, you cannot access your principal. On completion of your tenor, you get the principal along with its interest earnings, but if you don’t know what this amount is, you cannot properly plan to meet your goals or needs.
Therefore, while investing, it is necessary for you to know how much you will earn on your invested sum at the time of maturity. However, you do not have to do these calculations manually. Varied investment options offer you, online calculators, using which you can perform these calculations in minutes.
Read on to know about the FD calculator and how it can help you build wealth over time.
● What is an FD calculator?
You can check the maturity amount of your FD using an FD calculator and plan your finances in an efficient way. The FD calculator is an online financial tool which also computes the total interest you can earn on your fixed deposits. You just have to enter basic details like deposit amount, tenor, type of FD and interest rate to use a Fixed Deposit (FD) calculator. However, before investing, you must compare different FD interest rates on offer. Calculate the maturity amount based on these differing rates to arrive at a sum that best suits your needs. The best part about the calculator is that you can toggle all the numerical values as many times as you want to arrive at an amount that you feel is right for you.
With the help of an FD calculator, you can get a better insight about the different FD interest rates, find the beneficial tenor basis your goals and financial requirements, and then decide the amount you can invest at present. Moreover, here is how you can build a wealth corpus using your FD investments.
1. In order to earn more from your FD investment, you can first decide whether you want to withdraw the interest earnings on your investment on a regular basis or want it at maturity. Based on your decision you can plan to invest in a cumulative FD or a non-cumulative FD. Based on the amount you want to invest, toggle the interest and the tenor to see how your returns differ for each FD variant and then ladder your FDs so that you can tend to all your needs comfortably.
2. Based on the returns you are expecting you can invest in a fixed deposit for a few days or stay invested for years. It all depends on the purpose of your investment and the amount you choose to put in as an investment. After you have finalized the amount and the FD variant, decide the compounding frequency by choosing between quarterly, monthly, semi-annual and annual interest payouts. Use the FD calculator to see how the maturity amount on your Fixed Deposit (FD) investment alters with the tenor and frequency.
3. Investing in higher interest rate FDs will help you create a corpus of funds faster. Choose a trusted issuer basis their interest offerings. Invest in Company FDs as unlike banks, these FDs tend to offer you higher interest returns. For instance, when you make aFixed Deposits with an issuer like Bajaj Finance, you stand to earn a significant interest rate of up to 8.75% on your cumulative FD for at least 36 months. This rate goes up to 9.1% if you are a senior citizen. Its guaranteed returns add to the plethora of benefits it provides like a loan against FD in times of need, online account management for added convenience, and minimum deposit requirements.
Keeping these facts in mind, you can use the FD Calculator from Bajaj Finance to plan your investment better. Evaluate your financial standing and needs to decide how you want to pave the blocks for your investments so that you can build a wealth corpus in no time.
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