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Most investors conduct research and invest in several avenues to grow their
wealth. However, with fluctuating stock indices and market turbulence, there may
be greater investment uncertainties. A good way to balance out your returns,
amid these volatilities, is to diversify your investment portfolio, and allocate
a significant portion towards fixed income investment instruments.
Fixed income instruments may offer marginally lower returns, but you can gain
from the security of consistent, assured returns. A fixed deposit is one of the
most preferred investment avenues, because of the stability and flexibility it
offers.
By allocating funds towards this instrument you can thoroughly plan your
finances in line with your goals. As the returns from a fixed deposit do not
depend on the performance of the market, you need not worry about the amount you
will receive upon maturity. Calculating your returns beforehand can help you
plan your investment and build your wealth smartly.
Take a look at all you need to know about fixed deposit interest rates and how
using an FD calculator can help you make a smart choice.
How to calculate interest for fixed deposits?
The manual formula to calculate the returns from your fixed deposit is as
follows:
A = P (1 + r/4/100) ^ (4*n)
Here ‘A’ represents the maturity amount, while ‘P’ represents the principal and
‘N’ represents the compounded interest frequency.
Calculating your maturity amount is quite helpful as it gives you a clear
picture of what you stand to gain. However, manual calculation can be erroneous
and time-consuming too. Hence, top financial institutions provide you with the
opportunity to calculate your returns with the help of an online
FD calculator. This way you can compare how interest rates
offered by different issuers affects your investment and also settle on the best
tenor and deposit amount to maximise returns.
You will get the results in seconds and be able to see the principal amount,
maturity amount, and the total interest earned at a glance.
Which factors impact your fixed deposit interest rate?
The RBI’s policies and economic climate affect the rate that the financial
institution is able to pass on to you. That said, different financial
institutions offer different
Fixed deposit interest rates.
Here’s a look at some of the other factors that impact your FD interest rate:
- The amount you choose to invest can determine the interest rates. Several
institutions have different rates for different amounts.
- The tenor you select for your fixed deposit can also affect your interest
rate. Many institutions offer interest rates based on tenors as well as the
amount.
- The type of fixed deposit, whether cumulative or non-cumulative, can determine
your interest rate too.
- The relationship you have with the issuer is important as existing customers
may be able to negotiate a higher interest rate with top institutions.
- The age of the person under whose name the fixed deposit is created can affect
interest rates. This is because senior citizens are offered a higher interest
rate.
So, use an FD calculator to forecast your returns beforehand and make the right
choice whether it is with regards to the issuer or the investment amount. For
excellent results choose Bajaj Finance. You can earn up to 8.75% interest on a
cumulative Fixed Deposit of 36 months or 9.10% as a senior citizen. What’s more,
enjoy online account management, and special tenor FDs that offer 0.25% higher
interest. With a minimal amount of Rs.25,000 you can apply online comfortably
and benefit from assured returns.
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