Fixed Deposit Calculator
Use Fixed Deposit Calculator To Invest BetterIf you are planning to invest your hard-earned money in a fixed deposit, then you can use our fixed deposit calculator to calculate the return you will receive after maturity. This FD rate calculator will give you an insight into the best place to invest in your fixed deposit. Here is all you need to know about FD and FD rate calculators online.
An investment tool that banks and non-banking financial institutions (NBFC) offer to their clients to help them save money is a fixed deposit, or FD. You can invest a sizable sum of money in an FD account for a set period at a predetermined interest rate. This is a good way to save money because you receive a lump sum plus interest at the end of the term. Banks offer different interest rates for fixed deposit accounts.
A fixed deposit can be made for at least 7 to 14 days and up to 10 years. For this reason, an FD is also referred to as a term deposit. A fixed deposit account you open at a specific interest rate is guaranteed because the interest rate will remain the same regardless of any changes brought on by market fluctuations.
To comprehend a fixed deposit clearly, you must be aware of its essential features:
- Guaranteed Returns: A fixed deposit offers assured returns. You will receive the same return that was agreed upon when you opened your FD. With market-led investments, which provide returns based on changes in market interest rates, this is not the case. Even if interest rates decrease, you will continue to receive the agreed-upon interest. Because of this, the fixed deposit is safer than any other form of investment.
- Rate of Interest: Depending on the term you want to deposit your amount, the fixed deposit's interest rate changes. However, the interest rate is set. The rate of interest is also different for different banks.
- Provides Flexible Tenures: For an FD, you can select a tenure of 8 days to 10 years.
- Return on Investment: Your fixed deposit's tenure, or maturity period, will determine how much interest you receive. You will receive a higher interest rate if your tenure is longer. Additionally, the returns on your investment depend on whether you choose to receive the interest on a periodic basis or reinvest it, which is known as a cumulative fixed deposit (FD). With this FD, compounding works in your favor.
- Loan against FD: If you have a sudden need for money, you can borrow against your fixed deposit. This prevents you from prematurely closing your FD.
You can use a fixed deposit calculator to figure out how much interest you can earn by making an investment in a fixed deposit for a set period of time. You can quickly calculate FD interests by simply entering the following data. By applying compound interest on a monthly, quarterly, half-yearly, or annual basis, an online FD calculator is used to calculate the maturity amount.
The salient features of an FD calculator:
You can calculate the annualized interest rate on your fixed deposit using an FD calculator.
- Using an FD calculator makes determining how much to invest easier.
- Measure your investment growth over the specified period of time using an FD calculator.
- Create a monthly or quarterly pay-out plan by investing a lump sum using an FD calculator.
Simple interest is used to calculate the interest earned on bank FDs with terms shorter than six months, taking into account the number of days.
FDs with a tenure of six months or longer earn interest that is compounded quarterly, which means that the interest from the previous quarter is added to the principal when determining interest.
When choosing the monthly interest payout option, the interest will be charged at a reduced rate compared to the market rate. If you selected a quarterly payout option, interest is calculated and paid on a quarterly basis.
This is how you use the FD calculator online
Follow the steps below to use the A2Z FD calculator online:
- You need to ensure that you have all the relevant data with you.
- You may choose whether your FD will have a simple rate of interest or a compound rate of interest
- Enter the variables mentioned in the calculator. This includes the principal amount, interest rate, and years.
- Press the 'Calculate' button and you will get your result.
This A2Z FD calculator online will conveniently tell you the exact amount that you will receive at the time of maturity of your FD, and that too, without any cost.