Systematic Deposit Plan is considered to be among the best ways of earning high returns on deposits. Also, the fact that individuals can start their deposit account with a minimum of Rs.5000 makes it a more convenient way of mobilising one’s savings for better. However, it must be noted that each deposit is regarded as a separate account under this savings scheme and generates earnings at a different rate of interest.
Though SDP in India offers a chance of generating a higher return, some may find it challenging to keep track of their gains in the long run. To simplify the process of computing the maturity value of one’s monthly deposit plan, depositors can use a reliable financial tool like a systematic deposit calculator.
What is a Systematic Deposit Calculator?
A systematic deposit calculator is a financial tool that is designed to help users compute complex maturity-oriented calculations with ease. Nevertheless, to obtain accurate results pertaining to the returns, users should learn how to access and use such financial tool.
How to use an SDP Calculator?
Users can access an SDP in India calculator easily online and compute the maturity value in just a few steps.
Here are a few steps which show how to use Bajaj Finance’s systematic deposit calculator –
Step 1 – Visit the NBFC’s official website.
Step 2 – Look for ‘Systematic Deposit Calculator’ tab.
Step 3 – Navigate to the page.
Step 4 – Select the ‘Customer Type’ – existing customer, new customer, senior citizen or an employee.
Step 5 – Enter deposit amount (minimum limit is Rs.5000).
Step 6 – Select maturity period (between 12 months and 60 months).
Step 7 – Select the most convenient frequency of deposits.
Once these steps are followed, users would learn about the estimated maturity value of their deposit within a few seconds.
How does the calculator work?
The outcome of the calculation relies heavily on these following –
- Current rate of interest.
- Amount of principal deposit.
- Maturity period.
- Frequency of deposits.
Example 1
An individual deposits Rs.5,000 for 2 years in 12 deposits. If the rate of interests is 7.65%, earnings generated from each deposit will be Rs.794 per month. The maturity value would stand at Rs.69,528, and the total interest would amount to Rs.9. 528.
Example 2
A senior citizen deposits Rs.10,000 for 60 months in 48 deposits. If the rate of interest is 8.05%, earnings per month from each deposit will be Rs.4,727. The total amount received after maturity will be Rs.7,06,896, which includes interest of Rs.2,26,896.
Once the outcome is received, individuals would learn about these with a Systematic Deposit Calculator –
- Prevalent interest rates.
- Amount of interest on each deposit.
- Total pay-out each month.
- Maturity value.
- Total interest earned.
Becoming familiar with these aspects would come in handy to decide the merit of depositing money into SDP in India.
Systematic deposit calculator and its benefits
The primary motive of the SDP in India calculator is to help users plan their deposits smartly. However, there are several other features of this financial tool which benefits the users in different ways.
The following highlights a few of them in brief -
- Correct calculations
The calculator eliminates the need for manual calculations. It does not just help to avail accurate results but in turn, eliminates the risk of making any errors that are common in manual calculations.
- Quick and convenient to use
The simple and user-friendly interface makes it easy for anybody to use it at any time. Also, the fact that it produces instant outcomes makes the entire process of evaluating the maturity value of a Systematic Investment Plan against different tenor quick and convenient.
- Easy to adjust
Users can change details pertaining to their deposit tenor, amount and frequency to compare the different outcomes easily. It comes in handy for those individuals who intend to choose the most profitable combination of maturity period and deposit frequency.
- Knowledge about prevailing rates of interest
Often it is difficult to keep track of the prevailing interest rates to assess the maturity value precisely. Since interest rates are pre-fed into the calculator’s system and are updated in case of change, users don’t need to track it. They can simply check out the prevailing rate of interest from the SDP in India calculator itself.
Hence, it can be said that by learning how to access and use the systematic deposit calculator, users would be able to find their returns efficiently. Also, it would serve as a useful tool for financial management by allowing users to rebalance their finances to accommodate the deposit amount.
