How to Use A Fixed Deposit Calculator

Don’t you always want to be clear on how much profits or returns you will make on an investment? Leave investment, isn’t it a natural human tendency to always calculate everything manually even for simpler things?

Although it’s a good idea to calculate things manually if you are pretty sure that the results will be correct. However, when it comes to calculating the compounded interest on a fixed deposit investment, they are not easy to calculate. And calculating how much will be your interest payout is also tricky.

However, you need not worry as modern finance has paved the way for a better tool these days. It will not only help in calculating the exact compounding interest on your FD investment but even aid you the profits of the investment. Yes, a fixed deposit calculator is a tool that is being discussed.

What is an FD calculator?

You can know about a fixed deposit calculator as an online application that assists in calculating the interest amount and the maturity figure on your investment of the FD.

When you enter some key statistics such as tenor and the principal, it provides you with the exact inputs. Hence, when you are sure of how much profits will you make on your FD investment, it helps you decide whether the investment is really worth or not.

How to use a fixed deposit calculator?

Leading online non-banking finance companies (NBFCs) offer a FD (Fixed Deposit) Interest calculator on their websites, and it’s simple and non-complex to use.

Here’s how you can utilize a fixed deposit calculator:

• Go to a website of a fixed deposit service provider
• Go to the fixed deposit section
• You will find the fixed deposit calculator, click on the link
• If you can’t find the link to the FD calculator, search for it on the website, and you will get it
• Begin by entering in the first category, select if you are a new or existing customer (loan), or a senior citizen. The selection of this category determines your fixed deposit interest rates
• The next section will want you do decide what type of a fixed deposit investment you would like to avail. You can decide if you want to avail a cumulative or a non-cumulative type of fixed deposit plan.
• In the third section, you should enter the total amount that you want to put in. Prominent non-banking finance companies (NBFCs) let you put in a minimum of Rs.25,000 and a maximum deposit of Rs.1 crore.
• Once you provide the above details, you can select the tenor or the duration of the fixed deposit that you wish to avail. A tenor ranges from 12 months to 60 months.
• Once all the above fields are filled properly, the FD calculator will automatically display an exact estimate of your investment amount and interest rate after maturity
• If you wish to avail a non-cumulative type of fixed deposit investment, you will need to opt for your interest payout frequency to arrive at your final figure.

Consider these points while using the FD calculator

• The FD calculator only helps you in computing the interest and maturity amount
• The interest rates range between cumulative to non-cumulative
• The final interest payout at the end of the tenor is displayed
• As per your tenor selection, the interest rates would change
• The FD calculator does not exhibit the taxes applicable

The Bottom Line

If you have an FD investment to make in the future, you can rely on a fixed deposit calculator to help you compute an exact amount of your payouts. All the best

Tags: Fixed Deposit Calculator

Category: Financial Planning