You must have used a calculator to understand the interest rate you will earn when you invest in an investment plan like a fixed deposit. Fixed deposits are one of the simplest investment tools to gain an understanding of the science of investing.
Many companies offer online FD calculators to help their customers and potential investors. These calculators save you from the hassles of incorrect and lengthy calculations. You can easily look out for online FD calculator on your financier’s website to know the maturity amount of your FD.
Systematic Deposit Plan (SDP)
Systematic Deposit Plan is an innovative savings plan launched for the first time in India by Bajaj Finance. This plan allows you to invest in a series of FD investments through small monthly deposits starting from Rs. 5000.
You can reap the benefits of changing interest rates during the tenor of the investment. Any changes in FD interest rates will allow you to earn the new rate on each deposit as applicable on the date of transaction. Thus, each deposit is treated as a new fixed deposit.
You can find a dedicated SDP calculator on Bajaj Finance website. Let’s see how Bajaj Finance SDP can help you plan your investments-
Using the SDP Calculator –
To get an exact estimate of the returns on your SDP investment, you need to enter the values of the monthly deposit amount, the number of deposits, and desired tenor of your investment.
Here is how these parameters can influence the maturity amount:
- Deposit amount- As a regular and disciplined saver, you can start with a small amount of Rs. 5,000 each month with a Systematic Deposit Plan. While the first payment is to be made via cheque, subsequent deposits are debited directly from an investor’s bank account through a NACH mandate.
- Tenor and number of deposits- The tenor options range from 12 to 60 months, and you can make one deposit per month. However, the SDP plan requires only 6 to 48 deposits within this tenor and gives you the flexibility to spend or redirect the surplus amount elsewhere. This is an ideal product for newbie jobbers and savers who have to fulfil many obligations within a limited budget.
You also need to choose the customer category applicable to you – new customer, existing customer, Bajaj Group employee or a senior citizen as an additional interest rate benefit is provided to certain customer categories.
Once you enter these values, you will get an exact estimate of the total payout and interest earned. The actual ROI earned may vary up to 4 bps, depending upon the prevailing interest rates.
You can adjust these values using a built-in slider to see how the payout and interest changes with changes in the basic parameter values. As the SDP calculator can show your changes in returns basis the changes in investment parameters, this can help you easily plan your future investment goals and withdraw accordingly (even prematurely). This is the best SDP in the country as it comes with the backing of a strong and financially sound company. Bajaj Finance is one of the highest-rated NBFCs among its peers with stability ratings of FAAA/Stable by CRISIL and MAAA/Stable by ICRA.
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 HighlightStory