The number of fixed deposit accounts in India is approximately 58% of the total number of accounts in operation as per the RBI in this fiscal. This larger share is largely due to the substantial and guaranteed returns extended by this investment option. Also, it provides stability and the ease of meeting your financial goals. Irrespective of whether you have short-term or long-term goals, fixed deposits can serve as the prime source of finance in both cases.
Before investing, you can also use an FD maturity calculator which will help you assess the amount of investments plus returns you can generate on maturity. You can enter the amount and the number of years you are likely to invest. The calculator will compute the maturity amount you will be disbursed with on completion on maturity.
What is Fixed Deposit Maturity?
Fixed deposits are subjected to a maturity period, the tenor for which can be between 12 months and 60 months as chosen by you. It is the duration during which you earn interest over the sum invested by you and also on the yearly interest that is earned. Simply put, the interest is compounded annually, and it goes on till the end of a pre-selected tenor. It is important that you know the fixed deposit rates before delving into the same. This will help you in choosing a suitable investment scheme.
Regardless, you should know how the tenor on your FD affects its interest rates. Most financers offer marginally higher rates of interest in case you invest for a longer tenor. Therefore, you can search for a reputed financial organization that offers competitive interest rates on fixed deposits. Bajaj Finance is one such non-banking financial company that offers attractive interest rates on Fixe Deposits. It also provides you with an online FD maturity calculator to facilitate a convenient investment procedure.
How can you Benefit using the interest rate Calculator?
Fixed deposits are mainly of two types –
- Cumulative, and
- Non-cumulative.
where you either earn your interest and principal amount after the end of the maturity period or in regular payouts as in the latter case. Calculating using an FD maturity calculator is a simple process and can be done in 3 simple steps that are –
- Select type of customer – new/existing/senior citizen.
- Select type of FD- cumulative/non-cumulative.
- Select the tenor you want to invest for and enter the principal amount.
After entering these details, you will be able to calculate the maturity amount. As a working professional, if you are looking for an investment scheme to secure your future, FD is apt for you. And with the calculation of your returns beforehand, you would know why every early investor should invest in an FD for long-term benefits.
How can you be disbursed with the pay-outs?
On selecting the type of fixed deposit account, you either opt for a lumpsum payout at the end of maturity or regular payouts under cumulative and non-cumulative, respectively. All you need to do is select the frequency option for disbursals – monthly, quarterly, half-yearly or yearly basis. You can calculate the disbursals on an FD maturity calculator as well.
- You are handed out the total sum invested along with the interest earned in case of cumulative pay out when maturity period ends.
- In case of non-cumulative pay out, you are disbursed with the interest amount periodically
Fixed deposits are secured investments, and investors can gain considerably by investing in it. Consequently, you will know how yield matters in long term investments, as it not only increases your savings but also secures your future from unforeseen events.
Use an online FD maturity calculator while investing and streamline your investment options by gaining an insight into the amount of interest you are likely to earn on maturity or as your disbursal timelines. Since, your investment does not suffer the fluctuations in interest rates; it is an effective investment scheme to grow your savings assuredly over time.
