It is natural for an investor to be inquisitive about the FD returns and other features of an FD before investing. To calculate FD returns that one is eligible to receive at maturity many financiers have included a page of FD calculator on their websites. An FD calculator is an online tool that detects the inputs submitted by a user and provides an accurate estimation of the FD returns based on these inputs.
Corporate FD are the fixed deposit plans that a non-banking entity like a finance firm or NBFC offers. These FDs are known to grow deposits at a faster rate as compared to a bank or postal fixed deposits. The customer category of an investor plays a vital role in determining his returns as some corporate FD offer a higher FD interest rate to senior citizens.
For example, Bajaj Finance FD offers a 0.10% higher FD rate to those who are online investors and a 0.25% higher FD rate is provided to senior citizens even if they invest via an online or offline method. Therefore, selecting an appropriate customer category becomes essential while using an FD calculator. To earn sufficient returns through corporate FD, one can confirm that the following things are in place:
Credit ratings
Investors need to choose a credible financier before investing in corporate FDs. The credit ratings of an instrument show how credible or trustable an instrument is. Therefore, they must invest only in those corporate FDs that are considered stable.
For instance, Bajaj Finance FD has received FAAA/stable ratings from CRISIL and MAAA/stable ratings from ICRA. These credit ratings are high enough to establish it as a credible investment platform.
Interest rates
The first and the foremost thing that an investor must check before investing in a company FD is the corporate FD rates that it offers. A higher interest rate means that his deposits will grow quickly as compared to the FDs that are offering lower interest rates.
Suppose that one invests Rs. 20,00,000 in a bank FD for 5 years. However, he will receive much more returns if he invests the same amount in postal FD or a corporate fixed deposit like Bajaj Finance FD. The below table shows the comparison between these FD types based on interest rates, returns, and interest income:
| FD Plan | Amount | Tenor | Interest Rate | Interest Income | Returns | Growth in deposits (%) |
| Bank FD | Rs. 20,00,000 | 5 years | 6.5% | Rs. 7,60,840 | Rs. 27,60,840 | 38.04% |
| Postal FD | Rs. 20,00,000 | 5 years | 6.7% | Rs. 7,88,134 | Rs. 27,88,134 | 39.40% |
| Bajaj Finance FD | Rs. 20,00,000 | 5 years | 7.25% | Rs. 8,38,027 | Rs. 28,38,027 | 41.90% |
The returns offered by Bajaj Finance FD are much more in comparison to the bank or postal FDs and the same can be seen by comparing the growth of deposits that each of these FD plans provides.
To check the returns and applicable interest rates on a particular tenor, one can use the FD calculator that is available on its website. This FD calculator provides a precise prediction of returns and also lets you select an FD tenor, FD type, and deposit amount wisely.
Flexibility in investment
Flexibility is the key while investing in an FD scheme. This can come in the form of a flexible tenor or some other feature that provides convenience to an investor.
For instance, Bajaj Finance FD comes with a flexible tenor ranging between 12 and 60 months. Also, it offers a multi-deposit facility that lets investors invest in more than one FD at once through a single paycheque.
Moreover, it allows investors to apply for a loan if they require funds urgently. All these flexible options make it a credible and profitable corporate FD.