Senior citizens can park their funds in special deposits created for them as it is a safe avenue and offers steady returns after retirement. The interest earned on these can be an additional source of income post-retirement, making it easy to tackle daily or frequent expenses. These senior citizens FDs are specially customized for investors above the age of 60 years. The higher interest rates offered here to make them one of the most lucrative investment options.
That said, when starting an FD investment, you should find the issuer with the highest interest rate. For instance, Bajaj Finance offers interest up to 8.75% on a Fixed Deposit started for at least 36 months or up to 9.10% if you are a senior citizen when you sign up to receive interest at maturity.
Read on to know how to calculate your interest on a senior citizen FD using the FD calculator.
Factors to consider while using an FD calculator
- Interest rate: It is a very important factor as it is the rate at which you earn returns on your investment. However, the interest rate varies from one financial institution to another.
- Deposit amount: This is the amount you plan to invest in an FD.
- FD tenor: You are free to choose tenor for which you plan to invest in an FD based on your financial goals. It is in your best interest to choose a short tenor up to 5 years in order to get inflation-beating returns.
- Type of FD: Considering your income requirements, you can choose whether you want an FD that offers regular payouts or a payout only at maturity.
- Frequency of payouts: You are free to choose whether you wish to earn interest on monthly, quarterly, half-yearly or annual basis if you pick an FD with the periodic earnings option
Benefits of using an FD calculator
- This calculator saves a lot of your time by giving you quick results and makes calculation easy for you.
- In comparison with manual calculation, an FD calculator will give you accurate results without any scope of error.
- It lets you compare the maturity amount at different FD interest rates and FD tenors to help you make an informed decision for your retirement plan.
- You can calculate your returns with different principal amounts to better understand the most lucrative investment option for yourself.
Steps to use an online FD calculator
- Select the customer type or profile as ‘senior citizen’ to gain the FD interest rate of a senior citizen FD.
- When you want to accumulate funds over time, select the payout at maturity option. However, if you wish to earn a regular income to cater to your post-retirement expenses, invest in an FD that offers frequent payouts. If you are choosing the latter, pick your frequency.
- Enter the amount you plan to invest.
- Select the FD tenor for which you wish to lock in your money.
After you have entered all these details, you will get the interest amount and the amount you will earn at the time of maturity.
This way you can check the interest and maturity amount and use this information to plan your future investments more efficiently. Now that you know how to use the Fixed Deposit Interest Rate calculator, start an FD with Bajaj Finance to earn high returns and add stability and assured growth to your portfolio!