Bajaj Finance FD Calculator

Fixed Deposits are among the most popular instruments to secure the financial future of individuals and their families. They offer utmost fund safety coupled with a guaranteed interest yield depending on the tenure. It is, therefore, ideally suited to achieve mid and long-term financial goals. Apart from the banks offering products in the Fixed Deposit range, Bajaj Finance has acquired a niche clientele in the retail financial business, covering Fixed Deposit products in the cumulative and non-cumulative categories. The Bajaj Finance FD Calculator is a valuable tool to assist investors in estimating the yield on investment for a specific tenure.

Bajaj Finance is an NBFC operating out of its headquarters in Pune, offering a wide range of financial services. While using the Bajaj FD Calculator, the investor must remember that. It provides the most attractive interest rates, usually higher than the traditional banks.

How Can Bajaj Finance Fixed Deposit Calculator Help?

Investing in a suitable Fixed Deposit to build a corpus in harmony with the planned financial goals has never been easier. The Bajaj Finance FD Calculator does the spadework to project the future financials of the proposed investment in any Bajaj Finserv products. It is not out of place to mention that Bajaj FDs offer a tenure range from one year to a maximum of five years, both cumulative and non-cumulative types. With a few essential inputs, the Bajaj Finance FD Calculator displays the applied interest rate, total interest accrued, and the maturity sum. These figures are critical to financial and tax planning. As the future financials for investment is known in advance, it helps in chalking out a strategy to achieve life goals. No wonder the millennial generation makes liberal use of the digital tool to make an informed choice regarding investments.

How Does the Bajaj Finance FD Calculator Work?

As already stated, the Bajaj Finance FD Calculator is a free online service available at the company’s official portal and several aggregators. The primary inputs for the calculator to optimally display financial results instantaneously and accurately are the customer type, amount of investment, applicable interest rate, and tenure.  On entering the information, the outcome is displayed on the monitor, which forms the basis for a decisive investment.

In this context, it is imperative to recall the fundamental features of the FD products on offer. The two primary types reckoned by the Bajaj FD Calculator are cumulative and non-cumulative. While the interest rate is compounded annually in the former, a discounted rate is applied in the latter. Cumulative Deposit is payable upon maturity, while the non-cumulative interest accrued is paid periodically per agreed terms. Senior Citizens and online purchasers enjoy a preferential interest rate of 0.25% and 0.10% over the regular rate. All these factors are reckoned to compute the Bajaj FD Calculator’s outcome.

*All savings are provided by the insurer as per the IRDAI approved insurance plan. Standard T&C Apply

Simple Interest vs. Compound Interest

The primary characteristic of any Fixed Deposit is that a sum of money is kept invested for specific tenure to receive interest yield on it at tenure-determined rates. The two systems of interest application in Fixed Deposit are the simple interest and the compound interest. Computing the interest quantum using the Bajaj FD Calculator is distinctly different in the two. Let us check out how:

Simple Interest

It is a straightforward approach to interest calculation where the constant principal amount is reckoned. It essentially means that the accrued interest remains the same on every interest application, provided the interval is uniform. This system primarily comes into play only in the non-cumulative category. The formula to derive the interest is described below.

Interest = Principal x Tenure x Interest Rate / 100 or (PTR/100).

Compound Interest

Compared to simple interest, compound interest is far more complex. However, a simplified version in a layperson’s terms compound interest is derived when accrued interest is reckoned for interest application in the next cycle. It essentially means that the interest is applied to the principal’s sum and interest accrued previously. The Bajaj FD Calculator uses the following formula for computing the end result.

Final Maturity Sum = Principal (1 + Rate/ Number of times) ^ Number of times x Tenor { MS = P( 1 + R/N)^N x T}

After gaining sufficient clarity upon the interest systems in vogue, it is time to check the actual interest rates offered by the company.

Regular Customers - Interest  Rates from 12/05/2021 for deposits up to Rs.5 cr

Regular Customers - Interest  Rates from 12/05/2021 for deposits up to Rs.5 cr

Tenor in Months

Cumulative

Non-Cumulative

Monthly

Quarterly

Half-Yearly

Yearly

12 to 23

5.65

5.50

5.53

5.57

5.65

24 to 35

6.10

5.93

5.96

6.01

6.20

36 to 60

6.50

6.31

6.34

6.39

6.60

 

Online Purchase -  Interest  Rates from 12/05/2021 for deposits up to Rs.5 cr

Tenor in Months

Cumulative

Non-Cumulative

Monthly

Quarterly

Half-Yearly

Yearly

12 to 23

5.75

5.60

5.63

5.67

5.75

24 to 35

6.20

6.03

6.06

6.11

6.30

36 to 60

6.60

6.41

6.44

6.49

6.60

 

Senior Citizens -  Interest  Rates from 12/05/2021 for deposits up to Rs.5 cr

Tenor in Months

Cumulative

Non-Cumulative

Monthly

Quarterly

Half-Yearly

Yearly

12 to 23

5.90

5.75

5.77

5.82

5.90

24 to 35

6.35

6.17

6.20

6.25

6.35

36 to 60

6.75

6.55

6.59

6.64

6.75

 

Systematic Deposit -  Interest  Rates w.e.f 12/05/2021 for deposits up to Rs.5 cr

Tenor in Months

Cumulative Rates of Interest

Special Category

Senior Citizens

Online Customer

12 to 23

5.90

5.75

24 to 35

6.35

6.20

36 to 60

6.75

6.60

The stand-out feature from the above grids is that the Bajaj FD Calculator has to factor in only a few interest rates as they are simplified and clubbed across tenors. Additionally, the company does not offer short-term deposits, which have tenors described in days. All banks offer preferential interest rates to Senior Citizens, but an additional 0.10% rate is provided for online purchases. It encourages the investors to embrace the digital platform for every need, making the processes genuinely paperless.

FD interest have fallen consistently over the last 5 years.
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How to Use PolicyBazaar Bajaj Finance Fixed Deposit Calculator?

Using the Bajaj FD Calculator has many advantages over the manual mode. It acts as the precursor to an online investment to support the envisaged paperless environment. It is also heartening to note that the investor is rewarded with a higher interest rate application. With such redeeming features, the Bajaj Finance FD Calculator turns out to be a versatile, user-friendly tool.  The facility is available at the company portal, and several aggregators like PolicyBazaar offer their calculator services.

The inputs are straightforward and essential so that the end result is accurate. In the company portal, the necessary information is the type of customer, including online purchaser and Senior Citizen, nature of Fixed Deposit – cumulative or non-cumulative, the applicable interest rate, proposed investment amount, and the Deposit Tenor.  The following information is displayed instantly:

  • Interest Rate
  • Accrued Interest Amount
  • Maturity Date
  • Maturity Sum

The only difference with the PolicyBazaar Bajaj Finance FD Calculator is that the user has to choose the bank or the company where the proposed Fixed Deposit is destined.

Advantages of Using Bajaj Finance Fixed Deposit Calculator

The Bajaj Finance FD Calculator is a handy online tool explicitly designed to aid the investor in foreseeing the investment financials in the future in advance. The calculator offers enough scope to try different combinations to develop a suitable product matching individual needs. The inherent advantages of the Bajaj FD Calculator are:

  • The multi-faceted online tool is readily available at the company’s official portal and several aggregators for use anytime, anywhere.
  • It is user-friendly and simple to use, with only a few essential inputs to derive the desired results.
  • It is fast and accurate, saving the user from indulging in tedious calculations which may not be error-free.
  • The service is provided free from any charges, and there is no bar on the number of times it is used.
  • The investor uses the end result information for multiple purposes, the primary among them being customizing the Fixed Deposit.
  • The interest accrual amount is subject to tax liability under the extant laws covered by the Income Tax Act, 1961.
  • The investor can chalk out a strategy to manage the financials more fruitfully.

*All savings are provided by the insurer as per the IRDAI approved insurance plan. Standard T&C Apply

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Written By: PolicyBazaar - Updated: 24 June 2021
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