By Mashum Mollah
Want to know about some insights about a fixed deposit calculator? Read on and dig deeper!
Have you accumulated some savings which you want to invest in a lucrative investment vehicle that can give you higher interest payouts and assured return? You can look up to a fixed deposit or an FD scheme from a bank or a non-banking finance company (NBFC) to let your money grow over a tenor!
However, before you go ahead and start investing in a fixed deposit scheme of a service provider, isn’t it good to know how much you will earn before investing?
Yes, once you are sure of a figure that will be available to you after the completion of the tenor, it would be good to plan things in advance if you have a goal to complete!
A fixed deposit calculator helps you know it! Let’s know more about it in brief!
What is a fixed deposit calculator?
A fixed deposit calculator is an online tool which is available on a leading online service provider such as a bank or a non-banking finance company (NBFC). You can use it to know how much you will earn after the end of a tenor even before making an investment. Once you enter your deposit amount, and the tenor, the calculator will show an exact amount that you will reap interest after the tenor.
How to use a fixed deposit calculator?
An FD calculator is a user-friendly and simple to use with a glitch-free interface. Here’s how you can use a fixed deposit calculator:
- Go to an online fixed deposit calculator.
- Select whether you are a new or an existing customer, existing loan customer, or a senior citizen. Selecting a category determines your fixed deposit interest rate.
- Select what type of FD you want to invest. Leading online lenders let you invest in an FD for a minimum amount of Rs.25,000 and a maximum of Rs.1 crore.
- Once selected, select a tenor you seek to invest an amount. Basic tenor with leading lenders can vary between 12 and 60 months.
- Once you made the above selection, the fixed deposit calculator will show or display an exact forecast of the investment wealth after maturity along with the interest rate.
- If you have chosen a non-cumulative deposit scheme, you will also need to select the interest payout frequency to know the final figures.
Some points to consider about a fixed deposit calculator
- A fixed deposit calculator is an online tool that only offers you help in measuring the interest and the maturity amount
- Based on the cumulative as well as the non-cumulative FDs, the interest rates may vary
- The cumulative deposits and interest earnings are payable at the tenor’s end
- A selection of a tenor will decide how much interest you will earn
- FD calculators won’t display the tax amount applicable
Benefits of an FD calculator at a glance!
- It helps you know an exact value that a fixed deposit investment will fetch you after its maturity
- Lets you evaluate the figures from the calculator to know which FD scheme is good for you
- Helps you with precise and exact results
- Simple and user-friendly interface that doesn’t require any special skills
- Works fast and as per your provided inputs
- Saves your time and effort
The Bottom Line
A fixed deposit calculator helps you know about an FD investment’s outcome even before making an investment. Now that you are aware of its features and benefits, it would be good to use it and know about an ROI well in advance if you have an FD investment to make! All the best!
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