# Know More About The Systematic Deposit Calculator

## Systematic Deposit Calculator

For accumulating a huge corpus for our future, we usually go through different types of investments. Systematic Deposit Plan (SDP) is one of the best monthly investment plans that can help investors across all categories to save a part of their monthly earnings as a monthly fixed deposit every month. Bajaj Finance has introduced the concept of SDP in the Indian market and has also provided a free Systematic Deposit Calculator to assist the investors in planning and predicting their savings.

SDP is the monthly investment feature of the regular FD investment wherein you can make small monthly deposits each month till the end of the tenor. The deposit amount, number of deposits, and tenor can be pre-decided by the investor. However, the interest rate varies according to the interest rate applicable on the date of deposit. Therefore, in this way, it is different from an FD investment as the interest rate remains constant throughout the tenor of the FD.

Depositing a part of your savings is one thing and predicting the returns on maturity is another. It is important to know about the interest earnings and returns that you would gain after investing in an SDP.

This calculator estimates the interest and final maturity amount that you would be receiving as each monthly deposit matures. To calculate your SDP returns, you will need to follow these steps:

### Step 1: Choose the deposit amount

The systematic Deposit Plan allows you to choose any amount from Rs. 5000 to Rs. 20, 00,000 as the monthly deposit amount. Select an amount as per your convenience.

### Step 2: Select the number of deposits

You also have the discretion to decide the number of times you will be depositing the fixed amount in your SDP account. The number of deposits can be anywhere from 6 to 48.

### Step 3: Set the tenor

Next, you need to set the tenor for your SDP investment. You can choose a tenor between 12 to 60 months according to your financial planning. The same tenor will be applicable for all the deposits under SDP.

### Step 4: Check the returns

Once you select the values for all the above three parameters and select your customer category (new, existing, Bajaj Group employee), the Systematic Deposit Calculator will show the interest rate applicable to your investment and the interest amount you will earn on every deposit.

It will also show the monthly payout that you will receive each month after the completion of the tenor of each deposit and the total payout for the investment.

Note: Your returns may vary up to 4 bps depending upon the prevailing interest rates.

## Benefits of Systematic Deposit Plan (SDP)

Here are some notable benefits of investing in an SDP:

• Minimal investment amount- Anyone can save in an SDP as it allows a customer to start depositing with just Rs. 5000. It is quite similar to SIPs offered by mutual funds but it does not contain the risk factor of mutual funds.

Investments generally require a huge sum of money but that is not the case with SDP. Therefore, it is a recommended savings tool for those who have just started earning.

1. Laddering savings – With an SDP, you can ladder your savings as each subsequent deposit is considered to be a new FD. As a result, you can plan to invest some of your savings in a new SDP account whereas a part of your returns can be invested in some other instrument. Also, each deposit matures at a different date providing you with the much-needed liquidity to meet your financial requirements or goals.
2. Hassle-free payment – Only the initial payment needs to be done via a cheque. The subsequent payments will be debited directly from your bank account through a NACH mandate. Moreover, you do not have to bear any penalty in case you miss one of your monthly deposits.

All these benefits make SDP the best monthly investment plan for multiplying your savings.

## Author Bio:

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 Highlight Story.

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