A fixed deposit enables you to lock-in your investments at a fixed interest rate. The tenor is also fixed and this helps you to estimate the returns before investing. However, the manual FD calculation formula is a bit complex and you can easily make errors while calculating as per this formula.

Also, this calculation can be a tedious and tricky task as the compounding of interest depends on the payout frequency you opt for. To make your job easy, banks and other financiers have started providing fixed deposit calculators on their websites.

A fixed deposit calculator is an online tool that uses the inputs such as investment amount and tenor provided by you to determine the interest and final maturity value. It allows you to select an FD type and you also have to choose a customer type before entering these values as the applicable interest rate might vary accordingly.

For instance, if you are using the Bajaj Finance FD calculator then you will have to follow these steps:

  • Pick your customer type and select either a cumulative FD or non-cumulative FD as per your investment plan.
  • After that, enter the deposit amount and tenor in their respective fields. You do not have to do anything else as the calculator will calculate the interest amount and returns automatically.

The process remains the same with little variations for most of the FD calculators. Here are some of the reasons why you should use an FD calculator:

To get an idea about the interest rates

An FD calculator displays a wide range of interest rates according to the tenor and FD type chosen by you. You can use this feature to get an idea about the interest rates offered by different financiers.

To know the tenor range

Banks and finance companies offer different FD tenor ranges and an FD calculator displays this entire range at once.

By using this, you can compare the tenor length and maturity period easily. After comparing them, you can pick a tenor that is suitable for your investment to grow as per your financial needs.

Comparing cumulative & non-cumulative FDs

By using an FD calculator, you can check the interest payouts that you will receive after a fixed interval if you prefer to invest in a non-cumulative FD. Similarly, you will get the exact idea about the overall returns that you will earn by investing in a cumulative FD.

You can compare the plans based on overall interest earnings, your liquidity needs, and various other factors to determine which FD type is ideal for you.

The fixed deposit return calculator from Bajaj Finance shows interest generated by both cumulative and non-cumulative FDs for the same amount and tenor at once. This helps you to compare the FD plans easily and saves your time as well.

You can even fill an online FD form to book an FD from your home and you will receive a 0.10% additional interest rate for doing so.

The interest rates offered by Bajaj Finance FD can go up to 7.35%. This means that you do not have to worry about the reduced bank FD rates anymore as you can multiply your investment by depositing in these FDs.

These FDs have also received high ratings for their safety and stability by credit rating organizations like ICRA and CRISIL. As a result, your deposits are safe and you also get the option of investing in multiple FDs of different tenor and types with a single cheque.

The minimum deposit amount is Rs. 25,000 and a flexible tenor from 12 to 60 months can be chosen for each of these FDs. You can use these features to ladder your FDs so that you get more options to cover your liquidity needs.

A fixed deposit allows you to lock-in your savings for a fixed time and multiplies your investments at a fixed rate. This enables you to calculate the returns. However, the calculation of interest is a tricky part as it depends on your customer type, tenor, and interest payout frequency chosen by you. To make things simple, financiers have started providing FD calculators on their portals these days.

An FD calculator is an online tool and can be used in different ways to plan your investments. Check the Bajaj Finance FD calculator that displays the returns and interest earnings of both cumulative and non-cumulative FDs at the same time. Also, the interest rates of their FD plans are quite high and go up to 7.35%. These FDs are risk-free as well and therefore, you can multiply your investments without any worries.

Benefits of using an online FD calculator


The manual formula increases the risk of errors. However, in online calculators, you only have to ensure that you enter the correct values . Therefore, these calculators tend to generate more accurate results each time.


It is convenient to use an FD calculator because you do not require any additional tools to calculate the interest and maturity amount.

Aids in investment planning

An online FD calculator generates results quickly. This helps you to calculate the interest and maturity value for different tenors and principal amounts easily. As a result, you can also compare different types of FDs and their returns efficiently by using an FD calculator.

Non-banking finance companies like Bajaj Finance provide high-interest rates of up to 8.05%. Also, these deposits are rated highly for their stability and safety by credit rating organizations like ICRA and CRISIL.

If you do not want to wait until you accumulate a sufficient corpus to invest in FD, you can also invest in the SDP i.e. Systematic Deposit Plan. SDP is a monthly investment plan offered by Bajaj Finance in which a person can start depositing Rs. 5000 each month and reap all the benefits of a fixed deposit investment.

The number of deposits in SDP can range from 6 to 48 and the tenor can be chosen from 12 to 60 months for each of the deposited amounts. The interest rate for each of these deposits will be the one prevailing on the date of deposit. As a result, investors can benefit from the prevailing interest rates and start growing their savings from an early stage of their career.

Author Bio:

Gaurav Khanna is an experienced financial advisor, digital marketer, and writer who is well known for his ability to predict market trends. Check out his blog at HighlightStory.