The right planning and execution for savings are very important. If you wish to live a quality life, you should start saving a small portion of your earnings. Spending money wisely and simultaneously developing the habit of saving is essential to grow your wealth exponentially. So whether you are figuring out the FD interest rate or PPF (Public Provident Fund) interest rate, ensure that you make the right investment after thorough groundwork.
However, FD (Fixed Deposit) is one of the most sought-after investment options nowadays. Here, one can invest a sizeable amount of money.
What is a Fixed Deposit?
Also known as an FD, it is an investment offered by banks as well as non-banking financial companies (NBFC) to help people save money. Notably, one can invest a sizeable amount of money here because the Fixed Deposit Interest Rate is predetermined for a fixed period of time. In this arrangement, basically, the borrower invests money for a fixed term and a fixed return.
What are the types of fixed deposits?
Before investing your money, ensure you go for the right fixed deposit investment and calculate fd interest beforehand. Meanwhile, there are two types of fixed deposit schemes available –
● Cumulative fixed deposit
It offers compounding benefits to the holders because it gives both the accumulated interest and principal on maturity. So, instead of paying the interest to you periodically, here, the lender reinvests it and enables you to earn interest on interest. This type of FD is perfect for those who are not looking for periodic payouts from their investments.
● Non-cumulative fixed deposit
This type of FD is a regular income scheme that allows the investor to choose their period of interest payout. So, instead of reinvesting, the lender transfers the amount back to you. The non-cumulative fixed deposit is feasible for senior citizens and individuals looking to generate periodic cash returns from their wise investment. However, the total interest earned is significantly lower than the cumulative FD option.
But, most importantly, before going for an investment, you must be clear about what you’ll be getting out of it. Now, having a rough idea of your returns in your mind is never a good idea as it doesn’t offer the exact results. However, an fd calculator is one way to go.
Instead of just giving out basic information and instructions on how to use an fd calculator and where you can get one, it would be easier for you if I just shared my personal experience.
So, for all kinds of digital payments, I use the Bajaj Finserv application. Earlier, there were a bunch of applications on my smartphone for different kinds of recharges, but a good friend of mine told me about the Bajaj app, which is like an all-in-one platform.
As I came to know that the Fixed Deposit Interest Rate is quite appealing, I was curious to experiment with a calculator. Luckily, it is available on this app only.
Here is a step-by-step guide on how you can use an fd calculator
- Download the ‘Bajaj Finserv: UPI, Pay, Loans’ application on your smartphone.
- Sign up with your personal details
- On the home page, click on three bars on the top right.
- Choose the ‘Try our Calculators’ option.
- Go to ‘Deposits Calculators’ and choose ‘Fixed Deposit Interest Calculator.
- Enter the required details and know what suits you the best.