# How Bajaj Finance NBFC Calculate Fixed Deposit (FD) Interest?

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Fixed Deposit (FD) has been the most sought after investment option during recent times among individuals. The reason being high-interest rates and no market fluctuations applied to the principal amount. The fixed Deposit scheme provides a guarantee for assuring returns to individuals. You need to deposit a lump sum money to open an FD account for a chosen tenor and interest pay-out. The pay-out of FD interest rates can be monthly, quarterly, half-yearly, yearly, or at the time of maturity. However, experts’ advice to choose an interest payout at the time of FD maturity to earn high returns with high FD interest rates applied. The FD returns are calculated on the basis of the power of compounding. You can either choose to calculate the expected returns manually or use the online calculators. Almost all financial providers offer the facility of the online FD Interest calculator to calculate the interest rates and the maturity amount of the investment efficiently.

## How to Calculate Fixed Deposit with formula?

Fixed Deposit can be calculated by using the formula given below:

A = P (1 + r/4/100) ^ (4*n) and A = P (1 + r/25)4n

Where,

A = the amount due on maturity

P = the deposit amount

n = compounded interest frequency

r = interest rate

An illustration for calculating FD Interest rates is given as follows:

Suppose an individual invests Rs 2,00,000/- in a fixed deposit under a tenor of 5 years provided at an interest rate of 10%.

Then, the Fixed Deposit will be calculated by

A = 2, 00,000 (1 + 10/25) ^ (4*5)

= 2, 00,000*(1.025) ^20 A =

= 2, 00,000* 1.63861 =327723

A = Rs 327723 – 2, 00,000 = 127723

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However, to save time and energy, it is recommended to calculate fixed deposit using Fixed Deposit calculator.

How to Calculate Fixed Deposit using FD calculator?

FD calculator helps the process of calculating Fixed Deposit simpler, easy and saves time while doing so. The steps required for using and FD calculator is

• The individuals are required to select their customer status, I.e., New customer/Existing Loan/Customer/Senior Citizen.
• Choose between cumulative or non-cumulative fixed deposit.
• Select the fixed deposit amount required.
• Enter the preferred tenor applicable to fixed deposit.
• The individual will be able to see the interest amount along with the maturity amount to be acquired.

Benefits availed under Fixed Deposit Scheme

• The interest which is acquired under Fixed Deposit is not subject to fluctuations in the market.
• Fixed Deposit provides the highest Return on Investment (ROI) as compared to all the other deposit schemes in the market.
• Fixed Deposit is beneficial for senior citizens as it provides 0.25% more interest to them.
• Fixed Deposit can be tailored to an individual’s needs by providing them options for linking their savings account.
• There exist two methods of interest lock-ins namely cumulative and non-cumulative.
• There exists an option to check the reliability of fixed deposits via credit ratings given by ICRA and CRISIL.

Optimize Your Investments with Bajaj Finance

Bajaj Finance provides a fixed deposit scheme for individuals who wish to grow their investments. The features provided under Bajaj Finance are-

• The Return on Investment (ROI) is presented at a lucrative interest of 8.75%-9/10%.
• The FD calculator helps in calculating the maturity amount along with the returns to be paid in advance.
• Fixed deposit for senior citizens is provided at an interest rate of 0.35% higher than the regular interest rates in the market.
• Open the deposit scheme with a minimum deposit of Rs 25,000/-.
• The company has been accredited with an ICRA rating of MAAA and CRISIL rating of FAAA.
• Flexible tenors are provided for a period ranging between 12-60 months.
• There exists a special tenor which is provided for a period of 15 months which provides 0.25% ROI more as compared to the 12-month tenor.
• Quick accessibility with 200+ branches spread across 200 cities of the country.
• Individuals can use online account management through the online portal viz. Experia to keep track of their Fixed Deposits.
• Investing in FD has become easier with the help of the online application process. Moreover, you just have to submit a few necessary documents like KYC details and your FD account will be initiated.
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