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4 Things You Need To Know About An FD Calculator

Written by newsexaminer

A fixed deposit is one of the safest investment options available to you and offers you higher assured returns as compared to a savings account. Therefore, keeping your hard-earned savings in FD account will help you build wealth faster. To earn assured returns, you can start investing in a Fixed Deposit with reputed NBFCs like Bajaj Finance. Here, you can earn interest up to 8.75% by investing in an FD that offers interest at maturity for at least 36 months, or up to 9.10% as a senior citizen on the same FD.

Best of all, you can know the maturity amount in advance and plan your finances accordingly. Understanding your possible returns beforehand and how they are calculated by the financial institution will help you make an informed decision about your investment.

So, read on to know everything about a fixed deposit calculator.

What is a fixed deposit calculator?

An FD calculator is an online tool that helps you know the amount you will get at the time of maturity including the interest amount. With the help of an FD calculator you can see exactly how your money will grow through the tenor of your choice. Whether you want monthly, quarterly, half-yearly or annual payouts or wish to receive the sum at maturity, you can view the principal, interest earnings and total amount that you will earn in under a minute.

What Are The Factors To Consider When Using An FD Calculator?

In order to calculate your total interest earnings using an FD calculator, you have to take in to account the following factors.

  • Deposit amount: This is the amount with which you plan to open an FD account.
  • Interest rate: It is the rate at which you earn interest on your investment. This rate varies and will depend on the issuer you choose for your FD.
  • FD tenor: Based on your financial goals, you can choose the tenor or duration for which you are investing in a FD.
  • Type of FD: You can choose to invest in a FD that pays interest only on maturity or one that allows you to access the interest earnings periodically through the tenor.
  • Interest payment frequency: You can choose to earn interest on monthly, quarterly, half-yearly or annual basis.

How Will Using An FD Calculator Benefit You?

Here is the list of benefits that you can avail by using an FD calculator.

  • It is easy to use and gives you quick results, thereby saving a lot of your time.
  • As opposed to manual calculations, an FD calculator promises accurate results.
  • You can see how your returns will vary when you change the fixed deposit interest rates and tenor.
  • Since you can see the amount you’ll get on maturity, you can increase the principal if need be to ensure that your FD aligns to your goals.

How To Use An Online FD Calculator To Know Your Maturity Amount And Interest Earnings?

Here are the steps to use the online FD calculator.

  • Select whether you are a ‘new customer’, ‘existing customer’ or a ‘senior citizen’ from the dropdown menu.
  • Then decide whether you want to access the interest earnings from your investment at maturity or periodically. Feed this into the calculator and proceed.
  • Now, enter the amount with which you want to start an FD.
  • Select the tenor for which you wish to deposit this amount.
  • Once you enter all these details correctly, the calculator will automatically show you the interest you are eligible to earn on your FD at maturity by using the corresponding interest rate.
  • Toggle the parameters as many times as you wish to, to reach the ideal combination for your investment.

Now that you know the benefits of an FD calculator, you can use it to plan your investments better. Most importantly, you can use it to compare FDs before you invest to ensure that you pick nothing but the best.

Author Bio:

Uday is a passionate blogger. He has expertise in writing finance articles. He have been serving society as a financial adviser. He loves keeping himself up-to-date with the news and happenings around. He is always open to learning and shares his experiences on his Greetings of the Day.

 

 

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