In today?s volatile markets, every growth oriented investment carries a degree of risk and uncertainty, which affects your total returns. When the market forces are favourable, you may gain higher returns, but in the case of a downturn, the risk may be higher.

On the other hand, fixed income instruments like fixed deposits offer assured returns, so you can plan your finances better. By forecasting your returns, you can plan your investments to suit your goals easily. Manual calculations can be cumbersome and inaccurate.

Using a fixed deposit calculator may help you compute your interest on FDs easily. Most financiers have an FD Calculator on their website, which helps potential investors check their returns before investing. The Bajaj Finance Fixed Deposit Calculator enables investors to easily check their returns, and compute the interest on their FDs before they start investing.  

The calculator allows you to compute the fixed deposit monthly interest as well as the one-time payout at maturity by choosing the payout frequency. It also shows you the total maturity proceeds, allowing you to plan your yearly taxable income from FDs in advance.

That?s not all. FD calculators can help you in various other ways. Take a look at how you can put the fixed deposit calculator to the best use.

Calculate monthly interest payouts

Say you open a Fixed Deposit with a deposit of Rs.5,00,000 with an issuer who offers an 8% interest rate compounded quarterly. After the first quarter, you will earn Rs.10,000 interest on the principal. Here the 8% is divided by 4 to arrive at the interest rate for the quarter. In case you must gauge monthly payouts then simply divide Rs. 10,000 by 3. On doing this you will know that based on this interest rate, the monthly earnings on your chosen principal will be Rs. 3,333 approximately.

Calculating monthly payouts will help, if you choose to access your interest earnings on a regular basis every month. Thus, you can use the calculator to feed in varying principal amounts and tenors, keeping the payout option constant at monthly. This way you will be able to choose the principal amount based on your monthly obligations.

Calculate tax obligations

As per the Interim Budget 2019, you can gain tax rebates if you are eligible for exemption under Section 87A. Also, as per the newer terms, TDS on bank and post office FDs will only be deducted if your earnings cross Rs. 40,000 in a year. In case of NBFC FDs, TDS will be paid to the government at a 10% rate if your interest returns exceed Rs. 5000 in one financial year.

Keeping this in mind, you can use the fixed deposit calculator to compute your total accrued interest before investing. This will help you decide how much investment in a year will help you save maximum tax. Remember that the returns from FDs are fully taxable as they are counted as an extra source of income. So, checking this amount will help you plan better and reduce your tax obligations as much as possible.  

Understand compounding interest to decide payouts

Choosing monthly payout on FDs is a good option when you have to address certain obligations every month. However, if you are keen on diversifying your portfolio and want liquidity, you can choose multiple FDs to park your funds and opt for varied payout options. This way you will get to access maturity proceeds at different points in time to fund your goals.

Your FDs earn more returns via interest compounding. Each time the interest you earn is reinvested with the principal, so the more frequent the compounding, the higher will be your earnings. Thus, use the calculator and simply change payout from quarterly, monthly, or yearly options based on your goals and needs to check your potential earnings. By choosing to receive your earnings at maturity, you can benefit from the power of compounding and earn more.  Fixed Deposit Calculator can easily help you make this decision.

The amount you earn each month on your FD investment is directly proportional to the rate of interest you get. This is why you should choose an FD like the Bajaj Finance Fixed Deposit to benefit from interest rates as high as 8.95% on an FD started for at least 3 years with interest payouts on maturity. Moreover, these FDs carry ICRA?s MAAA and CRISIL?s FAAA ratings. These are the highest credit ratings in their respective categories. Thanks to this, you can invest with this issuer without fearing the security of your money and tailor your investment to your needs by choosing from a flexible tenor of 12 to 60 months and using the handy FD calculator.

This FD also makes it easy for you to manage your finances as it comes with an online account management. Thus, you can begin investing in this FD online by filling out a simple online form. This is all it takes to start your investment and earn high returns, so get started now!