{"id":3262,"date":"2019-04-25T07:16:14","date_gmt":"2019-04-25T07:16:14","guid":{"rendered":"https:\/\/www.therono.com\/?p=3262"},"modified":"2019-05-03T10:24:01","modified_gmt":"2019-05-03T10:24:01","slug":"how-is-the-monthly-interest-rate-calculated-on-standard-fixed-deposit","status":"publish","type":"post","link":"https:\/\/www.therono.com\/how-is-the-monthly-interest-rate-calculated-on-standard-fixed-deposit\/","title":{"rendered":"How is the monthly interest rate calculated on standard fixed deposit?"},"content":{"rendered":"

Investors diversify their <\/span>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. <\/span><\/p>\n

Investors may assess the following factors before <\/span>calculating the\u00a0<\/span>monthly interest rate on Fixed Deposit:<\/span><\/p>\n

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.<\/span><\/p>\n

Interest Rate<\/b><\/p>\n

The rate of <\/span>Interest on FD<\/b><\/a> 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 <\/span>8.75% p.a<\/span>. with certain beneficial features <\/span>and 9.10% p.a. for senior citizens, assuring the safety of the amount deposited and providing flexibility in choosing the tenor.<\/span><\/p>\n

Interest Payout Option<\/b><\/p>\n

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\u2019t 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.<\/span><\/p>\n

Check Out:<\/strong>\u00a0SBI CSP<\/a><\/p>\n

FD Calculator Monthly Interest Tool<\/b><\/p>\n

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

FD interest is compounded at regular intervals, and the FD Calculation formula is as follows:<\/span><\/p>\n

A = P (1 + r \/ 4 \/ 100) ^ (4 * n) and A = P (1 + r \/ 25) 4n<\/b><\/p>\n

Where,<\/span><\/p>\n

A = Maturity Amount<\/b><\/p>\n

P = Deposit Amount<\/b><\/p>\n

n = Compounded Interest Frequency<\/b><\/p>\n

A prospective investor can get an estimation of the monthly interest payout that they could acquire.<\/b><\/p>\n

Calculation of FD Monthly Interest:<\/span><\/p>\n