A fixed deposit is an investment to grow your savings and earn a higher rate of return than a regular savings account. It is offered by banks and NBFCs (Non-Banking Financial Companies). A fixed deposit has the lowest risk in the portfolio of investment. Money is invested in a fixed deposit with a lock-in period and interest is given either at the end of the maturity date or as a regular payout. Fixed Deposit is a very lucrative investment option as it gives out interest rates regularly and has easy liquidity.

Parking your investment in the correct Fixed Deposit in 2021 will ensure high fixed deposit returns on maturity and also a choice of regular interest payouts throughout the chosen tenure.

To ensure high returns you must look for a Fixed Deposit scheme with a high-interest rate payouts before opening a new fixed deposit account or renewing an existing one.

**Bajaj Finance Fixed Deposit Calculator** can help you simply determine the Fixed Deposit maturity amount. You will need to follow a few simple steps to check the FD interest rate and FD maturity amount. Firstly, you will need to go to Bajaj Finance FD Calculator and choose the type of customer you are. Then put in the FD type (cumulative or non-cumulative) and the amount of your principal and the tenor. The final amount of interest and your total amount earned at maturity will be displayed on the screen.

When you use Bajaj Finance Fixed Deposit calculator, there is an option that appears to choose from cumulative and non-cumulative payout options. These two options determine your interest rate and maturity value.

A cumulative Fixed Deposit scheme on the other hand is an option where interest is payable at the time of maturity along with the principal. The amount, in this case, is compounded annually. It is a perfect fit for someone who does not require periodic interest payouts.

A non-cumulative Fixed Deposit scheme is an option where the interest is payable on a monthly, quarterly, half-yearly, and yearly basis. This kind of option is designed to suit someone who needs an interest payout periodically

**What exactly is the Bajaj Finance Fixed Deposit interest rate calculator?**

Before you invest your money in a fixed deposit, you need to determine the amount of money that you will receive when the Fixed Deposit reaches its maturity. This is where the Bajaj Finance Fixed Deposit is very useful.

**How does Bajaj Finance Fixed Deposit calculator work?**

The Bajaj Finance Fixed Deposit Calculator is very easy to use. You need to put in the fixed Deposit amount and the tenor to calculate the amount receivable on maturity. It is also useful in calculating both cumulative and non-cumulative payouts.

The returns on your fixed deposit investments are calculated using your interest rate and frequency of interest payouts. The interest rates for Fixed Deposits are compounded periodically and the formula supporting the FD interest rates calculator is put below:

A=P(1+r/n)^n*t

Where,

A is the amount on maturity

P is the principal amount

r is interest rate

t is the number of years

N is the frequency of compounding

Bajaj Finance also calculates the FD effective interest. Your interest income and yield of your **Fixed Deposit** is influenced by the effective interest rate on your deposit. The following formula is used to calculate the effective annual interest rate.

Effective Rate = (1 + Nominal Rate / n) n-1

Here,

N is the number of periods per year

Let’s say for example, the annual interest rate is 10%. When the interest rate is compounded annually, it will turn out to be 10%. But if it is compounded quarterly, the effective interest rate would be 14.48%

So the next time you plan to invest in Bajaj Finance Fixed Deposit, you can use the Bajaj Finance Fixed Deposit Calculator to determine the best Fixed Deposit type and tenor for your needs.