You can decide to create a savings fund and make sacrifices to control your expenses with the objective of meeting your savings goals. This approach is efficient, but the only downside is that it remains effective only for a period of time. This is to say, it is not a sustainable approach as you would be most likely to give in and break your habit. A better approach instead, would be to go for savings schemes like a fixed deposit.
A fixed deposit is a type of term investment offered by several banks. It typically offers a higher rate of interest and investment security. The amount you deposit in FDs is locked in a predetermined period which can vary between 7 days and 10 years.
FD calculator online helps you calculate how much rate of interest you can earn by investing in the FD account for a fixed tenure. It is used to calculate the maturity amount by applying compound interest on a monthly, quarterly, or annual basis.
What is FD Calculator Online?
A fixed deposit calculator online is a tool that helps you to calculate the interest you can earn on your FD for a specific term. This calculator is simple to use and will enable you to compare different fixed deposits offered by various banks. It makes it easier for you to determine which bank and what amount and tenure would provide you with the largest FD maturity amount.
So, before you invest in a fixed deposit, it is advisable to use an FD calculator online to estimate your earnings ahead of time. It also allows you to make a more informed financial decision.
You can also use the RD calculator to calculate the interest on recurring deposits if you prefer to invest regularly rather than going for a lump-sum deposit.
How Does FD Calculator Online Work?
Fixed deposits are considered the safest investment avenue in India. By using the FD calculator online, the interest amount can be estimated even before opening an FD account. At the time of calculation, both the simple and compound interest are considered. The initially invested amount will be calculated with simple interest where the principal amount is calculated based on the compound interest. This calculator makes it easier for an investor to calculate the maturity amount to be earned.
Importance of Using FD Calculator Online
Investing in fixed deposits requires you to carefully assess your financial profile in tandem with your existing investments and future goals. Here are some reasons why it is important for you to use an FD calculator online before investing in fixed deposit schemes.
- Hassle-free Investment Calculation
Calculating the return on the maturity of an FD can be a complicated process involving multiple variables. The FD calculator online helps you get accurate estimations without any hassle.
- Time-Saving Process
By using an FD calculator online or an RD calculator, you can significantly reduce the time spent on planning your investments. You can do complex calculations by just clicking a button.
- Enables You to Compare FDs
The fixed deposit calculator online can also be used to compare the many types of fixed deposit programs offered by various banks and other financial institutions. It is possible for you to determine which scheme delivers the best returns throughout the specified time period using the calculator.
- Helps to Create a Bigger Financial Plan
Having an estimation of the returns from an investment allows you to look at the bigger picture in your life. You can also figure out other investment opportunities and diversify your portfolio to optimize the returns. If you are a risk-averse investor, the FD calculator online can help you understand how much you should invest in order to get the desired returns.
How to Calculate Monthly Interest with FD Calculator Online?
Calculating the FD interest amount is easy using the FD calculator online. Here are the basic steps of calculating your interest rate in no time. If your bank is providing an FD calculator facility, then go to the official website of your bank and follow the below steps.
- Select your customer type from the given options i.e New Customer / Existing Customer or Senior citizen.
- Select the type of FD: Cumulative or Non-Cumulative type.
- Choose the amount you want to invest.
- Select the tenure of deposits.
- Click on the calculate option.
After adding all necessary information, the FD calculator online will automatically suggest the interest earned, along with the maturity amount.
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Conclusion
The current interest rate of fixed deposits may range from 3 or 9 per cent, with an extra 0.5% for senior citizens. However, various banks offer different rates of interest. So, it is always advisable to use an FD calculator online to get a rough idea of various rates and choose the FD scheme that fulfills your requirements.
