How is the monthly interest rate calculated on standard fixed deposit?

Investors diversify their investment portfolio into various return-generating instruments depending on their financial goals and risk appetite. To secure a part of your savings, Fixed Deposit (FD) is known to be the most convenient and safest investment option. A guaranteed and regular return is assured on the principal amount deposited. As per your choice, FD interest can be received on a monthly, quarterly, half-yearly and yearly basis or can be reinvested and harvested at the time of maturity along with the deposit. You can maintain liquidity from your FD investment through the monthly FD interest payout option. However, you need to choose the type of FD from cumulative and non-cumulative. The flexibility in choosing the interest payout frequency is available only with the non-cumulative FD. If you wish for high-yielding FD, cumulative FD can be the right choice and if you wish for a regular income from the interests earned on your FD, non-cumulative FD can be the right choice. The online FD calculator monthly interest tool can help you compute the interest as well as the maturity amount.

Investors may assess the following factors before calculating the monthly interest rate on Fixed Deposit:

FD is considered to be less risky instrument when an investor wants to yield a definite return. You can park an amount securely in FD, generating timely interests and can safely avail the deposit amount on the maturity date.

Interest Rate

The rate of Interest on FD depends on the amount invested, the tenor opted, and the chosen type of FD. Bajaj Finance Fixed Deposit is one of the reliable institutions offering highest interest rates up to 8.75% p.a. with certain beneficial features and 9.10% p.a. for senior citizens, assuring the safety of the amount deposited and providing flexibility in choosing the tenor.

Interest Payout Option

For investors, who need timely interests, Bajaj Finance non-cumulative Fixed Deposit gives interest on monthly, quarterly, half yearly and yearly basis. And for investors, those who don’t need timely interests and wishes to draw the accumulated deposit at once, Bajaj Finance cumulative Fixed Deposit gives interest, which is compounded annually, at the time of maturity along with the deposited principal amount.

Check Out: SBI CSP

FD Calculator Monthly Interest Tool

Before investing, you can estimate the interest and maturity amount in advance with the help of Fixed Deposit calculator. Bajaj Finance Online Fixed Deposit calculator is a simple and user-friendly tool aids you to calculate these amounts, guiding you to plan your investments easily.

FD interest is compounded at regular intervals, and the FD Calculation formula is as follows:

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

Where,

A = Maturity Amount

P = Deposit Amount

n = Compounded Interest Frequency

A prospective investor can get an estimation of the monthly interest payout that they could acquire.

Calculation of FD Monthly Interest:

  • Select your customer category (New customer or Existing customer or Senior citizen)
  • Enter the amount to be deposited
  • Select the tenor
  • Select the interest payment frequency

Monthly interest

If an investor wishes to have regular income at a specified interval, the fixed deposit can avail interest payouts at the chosen frequency. With Bajaj Finance FD you can opt for monthly interest payout and will receive FD monthly income. You can easily determine the monthly interest with the assistance of online Bajaj FD calculator.

The interest rates on a saving account or current account are lesser as compared to the interest rates on fixed deposits. A constant income in terms of interest is rendered on the amount invested for a predetermined tenor. FD interest rate varies in accordance to the tenor selected and with long-term deposits; you generally get an elevated interest rate. Bajaj Finance Fixed Deposits are rated MAAA from ICRA and FAAA from CRISIL which signifies utmost safety with lower risk on the investment. Bajaj Finance offers one of the highest interest rates which make it more preferable to the investors. Higher rate of interest is provided to senior citizens. You can invest in FD by a minimum deposit of Rs. 25000 and can choose tenor between 12 and 60 months, depending on your financial goals. For an assured sum of interest, you can select the frequency as per requirement.

Related Post: ONLINE SBI CSP

Alok kumar

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