Fixed deposits are one of the most trusted modes of investment in India. The major reason behind people’s trust in them is the assured capital and interest returns. And above that is the belief in the integrity of banking institutions, especially in nationalised banks. FDs also provide a high interest rate in comparison to savings bank accounts, savings schemes and even recurring deposits.
But you will require assistance to know how much interest amount you will gain based on the particular features of different plans. This is where an FD Interest Calculator enters the picture. And you can even find a good FD calculator online. Read on to know more about the FD interest calculator, its features and how to use it.
FD And FD Interest Calculator
A fixed deposit is a scheme through which an investor can invest a large amount of money at a time and obtain interest by retaining it for a prolonged duration. This duration can be of several months or even years. The benefits of FDs over regular savings plans are the high interest rates.
An FD interest calculator helps you calculate and find out how much interest an FD plan will earn. The calculation depends upon the key factors, such as the investment amount, the duration, and the interest rate. Such calculators are extremely helpful as they help the user know the returns from any FD plan.
You can find an FD calculator online on the website of most financial organisations. So a user can get an easy and accessible tool that is free to use yet very beneficial. These calculators are also beneficial in knowing how much tax an investor needs to pay based on the interest earned in a year. Click here to know more about how to save tax in investment plans.
Several financial institutions provide FDs, so knowing everyone’s credibility can be difficult. However, a thing to consider while using the FD interest calculator is that the inputted FD plan is an actual plan. For this, one can refer to the RBI’s list of Scheduled Banks. It will protect you from fraud by an unregistered bank.
Key Features In A FD Interest Calculator
An FD interest calculator is one of the easiest among the plenty of online calculators used for different purposes. The features and inputs in it are also very few in comparison. Given below are the features of an FD interest calculator.
Total Investment – This is the total required amount for the FD plan.
Interest Rate – This is the rate of interest of the particular FD plan. The user can choose between an annual or monthly credit of interest based on the FD.
Investment Duration – This is the total duration of investment in FD in months or years.
Calculate – After inputting all the details, the user can click on this button to get the final results.
Interest Returns – This is the result column that displays the total interest earned.
Total Returns – This column displays the total returns of the FD at maturity. It is the sum of the total investment and the total interest earned.
How Can A FD Interest Calculator Be Of Help?
An FD interest calculator can provide the user with several benefits. Given below are some specific ways how FD interest calculator can help users.
Easy Solution To A Complex Calculation
FD calculations can be tough while calculating with pen and paper or a regular calculator. This is because some month-based FDs can use a monthly deposit of interest, or some use compound interest rather than simple interest. And doing these calculations for multiple years can increase the length of your calculation. But an FD interest calculation helps you find the result easily and without much trouble.
FD Plan Comparisons
The best help an FD interest calculator provides is plan comparison. A user can determine the returns from various plans using the calculator and know which is the most profitable plan. Thus, helping them find the best FD plan to invest their money in and obtain the highest returns for the same amount.
The calculation in FD interest calculators is also very fast as they are programs. So it does not need to verify the results with a human operator and directly display the results. And as the results in the calculator are in real-time, a user can see how a change in the interest rate or deposit amount can highly affect the interest returns. Thus further helping them understand how the small changes in the deposit can help them obtain a greater yield from the same plan.
This detailed information on the FD interest calculator will help you know the returns from an FD plan. You also get to know the total amount of maturity at the end of the term with the help of the FD calculator online. And this total amount can be crucial in deciding which FD plan to choose from the available ones. Thus helping you find the best plan which provides the maximum returns for the same investment.