Optimizing Your Investment Strategy Using The Bajaj Finance Fixed Deposit Calculator

Starting a fixed deposit account is an excellent option, with many banks and NBFCs offering lucrative interest rates on flexible tenors. To optimise your returns, consider using an FD calculator to plan accurately.

When used right, it helps you choose the ideal FD plan and tenor, so that you can earn better returns over time. One of the most reliable tools you could use to estimate FD returns is the Bajaj Finance Fixed Deposit calculator.

This tool provides an accurate estimate of your returns in a simple and hassle-free manner. Read on to know how you can use the Bajaj Finance Fixed Deposit calculator to optimise your investment strategy.

4 Ways You Can Use a Bajaj Finance Fixed Deposit Calculator to Optimise Returns

Using an FD calculator is simple and requires you to enter minimal information, making it easy for you to optimise your returns. Here are a few ways how this digital tool can help.

Find a Suitable Tenor to Achieve Your Goals

The tenor on a fixed deposit is one of the most crucial aspects. This is because it affects the interest rate and the earnings you can get. This is why it is important to know your goals before you book an FD.

Be it an obligation one year from today or something three to four years down the line, you need to identify a clear target. If you don’t have a plan in mind but have a figure you would like to work toward, use the FD calculator.

All you have to do is enter the investment amount and the interest rate offered, and then adjust the tenor. You can keep adjusting it until you reach the actual amount required. Remember that while these results are accurate, they rely on the data you have entered. So, ensure that the information is correct.

Build Corpus by Laddering   

Laddering is an investment strategy that can help you enjoy liquidity by booking multiple FDs across different tenors. With the laddering strategy, you get fixed returns at fixed intervals. Moreover, you can always reinvest the maturity amount for additional returns.

For example, assume you invest INR 10 Lakhs across five FDs, each with INR 2 Lakhs as the invested amount. The first FD has a tenor of 1 year, the second FD is of 2 years, the third FD is of 3 years,  and so on.

Here is what your FD returns will look like using a laddering strategy. Do note that these interest rates are for non-senior citizens.

Disclaimer: These figures are indicative, and the interest rates mentioned above are subject to change at the issuer’s discretion.

On the other hand, the return on a lump sum investment of INR 10 Lakhs for 5 years will be INR 14,72,732 at the interest rate of 8.05% p.a. While the lump sum investment’s earnings are higher, the corpus will be locked-in for the entire tenor.

Moreover, the interest rates could increase when you decide to reinvest, and result in higher earnings. This way, you can use an FD calculator to estimate the returns on the invested amount using the laddering strategy.

 Compare Interest Rates for High Returns

In the digital era, most banks and NBFCs are offering competitive interest rates. With so many excellent offers to choose from, it can get overwhelming, especially if you are booking an FD for the first time.

However, you can compare multiple interest rates with an FD calculator. Simply keep the deposit amount fixed and change the interest parameter. This helps you identify the best FD interest rate offer and book a plan wisely.

Do note that the cumulative FD will likely offer better rates and returns than a non-cumulative FD. 

Compute Approximate Returns

Another benefit of using an FD calculator is that you can calculate the approximate returns well in advance, helping you make the right decision. Through these calculators, you could also estimate your earnings based on the FD interest rates of post office FDs. 

For example, if you invest in a post office FD, you could choose a tenor ranging from 1-5 years. Based on the selected tenor, you can know the exact returns for varying post-office FDs. So, knowing these calculations beforehand can help you zero in on the right amount and tenor.

Calculating the Returns Using an FD Calculator

The Bajaj Finance Fixed Deposit calculator also factors in compounding interest. Here, you get higher returns for longer tenors on cumulative FDs. To understand this better, consider an example of a INR 10 Lakh investment across varying tenor options of 1, 2, 3, 4, and 5 years. 

Here, FD interest rates are higher with a longer tenor. Also, do note that these interest rates are for non-senior citizens.

Disclaimer: These figures are indicative, and the interest rates mentioned above are subject to change at the issuer’s discretion.

A Step-by-step Guide to Using an FD Calculator

Here are the steps you could follow to optimise the total returns on maturity using the Bajaj Finance FD calculator.

• Step 1: Fill in the deposit amount
• Step 2: Choose a suitable tenor
• Step 3: Select the payout mode
• Step 4: Check the total interest earned at maturity, adjusting as per the applicable FD interest rate
• Step 5: Change the variables until you arrive at a value that aligns with your financial goals

Using these steps, you can calculate the investment terms and choose a suitable plan which allows you to earn handsome returns. Remember that these returns may vary for senior and non-senior citizens.

So, make sure you choose the correct individual type when using the calculator. Once you have found suitable terms through the FD calculator, you can open an FD account in just a few clicks.

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