Is there a disparity between a term deposit and a fixed deposit? Well, the answer is no. Both are equivalent. Despite that most investors incline to use the word term deposit more often. In the former, the remittance is kept for a firm maturity and the depositor is not permitted to withdraw this sum till the date of maturity/expiration. Hence, they are labeled as Term Deposits because they are held up to a particular term.
How is interest calculated on a term deposit?
A term deposit calculator helps to compute the maturity amount for your deposit per the prevailing interest rate for a specific tenure. The calculator is handy, convenient, and user-friendly to use and will help you collate different tenancy with varied interest rates from diverse banks, thus making it simpler to decide which bank and tenure give you the greatest maturity volume.
The following details will be asked to enter:
- Deposition amount
- Deposition interest rate
- Deposition tenure
- And, click on the calculate button.
Bajaj Finance FD Calculator
When investing in a Fixed Deposit, we seal our investment for a fixed period. Using the Bajaj Finance Fixed Deposit Calculator, we can effortlessly locate the maturity amount and interest attained when we endue in a Fixed Deposit. We can define the exact worth of our investments, even before initiating to invest.
Using the Bajaj Finance Fixed Deposit Calculator is quite easy. Just follow these steps:
- Select the customer type. (New, existing, or a senior citizen)
- Choose either a non-cumulative or cumulative FD.
- Enter the fixed deposit amount along with the tenure.
Once this is done, the page will automatically display the interest and maturity that an individual will earn. In addition to this, an extra of 0.25%, if you are a senior citizen and 0.10% if you are an online investor, will be given as well, which is an added bonus.
Here the returns are easily much higher than bank FDs. In a clear computation – a return on the minimum investment of Rs. 25, 000 will boost the investment capital by 49%, if in case, you’re a new customer.
Bajaj Finance FD calculator shows the measure of interest that will be received at the end of the tenancy; the amount of funds that a person makes either periodically or at end of the tenure depends on whether the FD is non-cumulative or cumulative. Thus, you can go ahead opt for the option that suits the best as per your need and requirement.
The fixed deposit interest rate varies on factors like:
- Government Policies.
- Economic conditions.
- Liquidity conditions in the market.
As we all know, FD is best suited for investors with low-risk tolerance. However, one should always check and analyze the FD rates comparison and collate interest rates to invest in the bank and/or other financial institutions with the best FD rates.
As per the current value, the highest FD rate is 6.95%.
If we do a comparison of FD rates of all bank’s overall holding, it shows that currently, the best FD rates in India is 7.50% for deposits with a tenancy of 2 to 3 years for debtors below the age of 60. In addition to this, the best interest rate of 7.25% for a tenure of 3 to 10 years for senior citizens is also being provided.
World Summary of Term Deposit Interest Rates 2021
Countries with the highest interest rates:
- Turkey (The World’s Highest Interest Rates).
However, as of May 2021, the country with the maximum deposit interest rate worldwide was Venezuela, where the interest rate was up to 36%. The second on the list came to Argentina, where the interest rate reached 34%.
Countries with the lowest interest rates (As of June 2021):
- Switzerland (-0.75%)
- Denmark. (-0.50%)
- Japan. (-0.1%)
- Sweden. (0%)
- Spain. (0%)
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 Highlight Story.