Everything you need to know about FD interest rates calculator
New Delhi : Fixed Deposit is considered as one of the safest and most popular investment options as it provides high rate of interest with low risk involved. In a fixed deposit, a certain sum of money is held with a bank or financial institution for a specified interest rate and deposit tenure. The amount invested stays with the bank or financial institution you chose, for the specified deposit tenure which ranges from 7 days to 10 years for most of the banks.
Fixed deposit should be the preferred choice of investment if you are looking to invest in a risk free investment option as the returns do not fluctuate as per the market conditions. In a term deposit, you will be able to earn fixed returns over the deposit tenure you opted for. With a fixed deposit, you can get more returns than your savings account and preferential rates for senior citizens. Not only that, you get other benefits like loan against fixed deposit, credit card against fixed deposit, preferential rates for employees and senior citizens etc.
Fixed deposits are offered by all the major banks in India such as SBI, ICICI Bank, HDFC Bank, PNB, Yes Bank, Axis Bank, and many others. Not only major banks, fixed deposits are also offered by small finance banks like Ujjivan Small Finance Bank, Jana SFB, Fincare SFB among many others. Fixed deposit rates vary depending upon deposit amount, tenure and as well as from one bank to another. This makes it important to compare and calculate the returns from different banks. Calculating the returns from different banks before investing can help you in maximising your returns by choosing the bank or financial institution offering you the maximum rate of interest in minimum period of time.
How are fixed deposit rates calculated?
Fixed deposit returns are calculated on the basis of deposit amount, tenure and fixed deposit rates. Interest earned on FD is compounded monthly / quarterly / half-yearly / yearly i.e. the interest earned during the previous month / quarter/ half-year / year is added to the principal for calculation of interest. This makes calculations complex and and time taking. So, it is advisable to calculate FD returns and maturity amount by using FD interest rates calculator.
What is FD Calculator?
Fixed Deposit Calculator is a tool available online which can assist you in calculating your total FD interest amount and maturity amount that you will get by investing in an FD account over specified period of time. You will be required to provide basic information to calculate FD interests and maturity amount in seconds. This tool helps in calculating complex calculations and concluding the maturity amount by compounding interest monthly / quarterly / half-yearly / yearly.
To calculate FD returns and maturity amount, you will only be required to provide information like deposit amount, fixed deposit rates offered by your bank and deposit tenure that you will opt for. This tool will calculate the returns in seconds and save you from laborious calculations and even saves you time.
How to calculate interest on Fixed Deposit?
Calculating FD returns and maturity amount manually is prone to human errors and even takes a lot of time. Calculating fixed deposit interest and maturity amount using FD calculator online is easy, hassle-free, user-centric and saves a lot of time by displaying the results in seconds. Not only this, all the calculations made using FD calculator are 100% accurate as it also takes into consideration the compounding of fixed deposit rates. You can easily calculate FD interest & maturity amount by providing the following details:
• Deposit Amount – The amount that you will invest in a fixed deposit scheme for a pre-determined period of time is deposit amount. The minimum and maximum amount that you can invest in a FD scheme varies from one bank to another. But, usually bank allows as low as Rs.1000 to be invested in a fixed deposit scheme. Also, the amount that you decide to invest in a fixed deposit account can only be invested in one go.
• Rate of Interest – Fixed deposit rate is the rate of interest offered by your bank or financial institution on your deposit amount. Rate of interest also varies with the deposit amount and tenure. Fixed deposit interest is compounded monthly / quarterly / half yearly / yearly depending upon your bank or financial institution. Also, fixed deposit rates vary depending upon deposit amount and tenure as well.
• Fixed Deposit Tenure – Fixed deposit tenure is the period for which you decide to invest your hard earned money. Fixed deposit tenure usually ranges between 7 days and 10 years.
By providing the details mentioned above, you can calculate the maturity amount and potential interest earnings instantly using an FD calculator.
Why is it important to use a Fixed Deposit Calculator?
Calculating the potential earnings of investing in a fixed deposit account using an FD calculator is an easy and hassle free process. It saves you time and also saves you from complex calculations which are prone to human errors when calculated manually. To calculate FD interest and maturity amount, you are just required to provide deposit amount, fixed deposit rates and deposit tenure and get accurate results in seconds using an FD calculator online. Not only this, a fixed deposit calculator can also provide you with the following benefits:
1. Hassle-free Tool
A fixed deposit calculator is an easy to use and hassle-free tool which helps in providing instant results. You are required to provide only 3 details which includes deposit amount, rate of interest and tenure to calculate potential earnings and maturity amount in seconds.
2. Saves you from complex calculations
Calculating FD returns and maturity amount manually can take a lot of time and are prone to human errors. But, a term deposit calculator can calculate instantly and provide accurate results.
3. Available online 24 x 7
FD calculator helps in making laborious calculations in no time. You can easily calculate the potential interest earnings and maturity amount using an FD calculator which is available 24 x 7 online.
4. 100% Accurate & Instant Results
FD Calculator provides 100% accurate results instantly. You are only required to provide correct information related to your deposit amount, fixed deposit rates and deposit tenure and the tool will calculate FD returns and earnings instantly.