Fixed deposits are one of the most popular investment instruments. This is because they provide assured interest returns on your investment allowing you to fulfil both your long-term and short-term goals with ease. Thanks to this, fixed deposits have become a go-to investment option for investors.
If you have also planned to invest in fixed deposits then you must compare different FDs basis their interest rates and then decide on the best one. While deciding, you can compute the maturity amount for your FDs. This will allow you to choose an FDs based on your financial needs.
What is the fixed deposit maturity amount?
The fixed deposit maturity amount is the amount you will receive at the end of your FD’s tenor. When you invest in fixed deposits, you start earning interest on your invested sum that adds up over time. The amount you receive at the end of the tenor includes both your invested principal and the interest amount it has earned.
What factors govern the maturity amount for your fixed deposit?
Here’s a lowdown on the different factors that affect your maturity amount, when you invest in fixed deposits.
- Investment amount: This is the amount of money you invest in your fixed deposit account. The higher the amount deposited, the higher is the amount that you will receive at the time of maturity.
- Fixed deposit tenor: Fixed deposits come with a lock-in period. If you stay invested for a longer tenor, you will receive higher amount of FD interest at the time of maturity.
- Type of fixed deposit: If you want to access your interest earnings regularly then opt for non-cumulative FDs by choosing compounding frequency of monthly, quarterly, semi-annual, and annual options as per your choice. On the other hand, if you want to access the interest as an add-on to your invested sum on maturity then invest in cumulative FDs. You will earn more on a cumulative FD because your interest every year is added to your invested sum and earns more interest. So, the longer the tenor the more will be the number of compounding cycles your investment will go through.
- FD interest rate: Invest in FDs with higher interest rate to earn good returns. The higher the interest, the more your maturity amount.
FDs bring a lot to the table. So, invest in cumulative and non-cumulative Fixed Deposits from reputed issuers like Bajaj Finance. These FDs are lucrative in terms of the benefits and the interest rate they offer on your investment.
Awarded ICRA’s MAAA (stable) rating and CRISIL’s FAAA/Stable rating you can completely trust the returns as Bajaj Finance gives you up 8.75% interest on a cumulative FD for at least 36 months or up to 9.10% on the same, if you are a senior citizen. Also, you can start investing with a mere sum of Rs. 25,000 to earn guaranteed returns.
Here is how you can check the maturity amount of Bajaj Finance fixed deposits
Using a formula
You can calculate the maturity amount of fixed deposits manually by using a mathematical formula. The formula to calculate is: A = P (1+r/4/100) ^(4*n). Here, A is the maturity amount, P is the deposit amount and n is the compounded interest frequency. While calculating the maturity amount of your fixed deposits manually, it is likely that you will make errors. To avoid this, you can use an FD calculator available online.
Using an online FD calculator
With FD calculator, you can calculate FD maturity amount and the interest amount you will earn on your investment instantly using the same formula given above. Here is a simple guide to using a fixed deposit calculator to know the maturity amount.
Enter basic details like deposit amount, interest rate, tenor, and select the type of fixed deposit you wish to invest in. For instance, say you are an existing Bajaj Finserv customer or a Bajaj group employee investing Rs.1,00,000 in a cumulative fixed deposit for 15 months. After entering these details in the FD calculator, you will see that the interest rate offered to you is higher than a new customer. Here, based on your privilege, your maturity amount will be Rs.1,10,063 with an interest earning of Rs.10,063.
Keep this information handy and proceed to check your maturity amount now so that you can choose FDs that yields maximum benefits over time.Tags: calculate FD maturity amount, higher amount of FD interest