For the ordinary person in India, Fixed Deposit is one of the most popular types of savings. The main reason is that the fixed deposit interest rates are much higher than the interest rates received from savings accounts. There are different ways to determine the maturity amount you will get after your FD’s tenure duration.
Either you can calculate it manually, or you can use automated tools. The best way is to use the FD return calculator available online. Using this calculator, you can accurately calculate the interest amount you will get once your FD matures.
Keep reading further to know everything about an FD calculator and why you should use it. Also, you will see the method to calculate the maturity amount depending on the different FD interest rates.
What is an FD Return Calculator?
Using a fixed deposit return calculator, you can calculate the maturity amount on your FD deposit based on the applicable interest rate for a specific tenure duration. This calculator is straightforward and allows you to compare fixed deposit interest rates with tenure durations from multiple banks.
With this, you can easily decide which scheme to choose per the requirements and which bank gives higher interest on your FD. You can estimate the exact interest income before investing. Many FD calculators are available online, so you can choose any as per your needs to make your calculations quick and straightforward.
Steps to Use a Fixed Deposit Return Calculator
For any investor, it is essential to know the expected maturity amount before making any investment. With this, they can make sure whether or not. The investment option chosen will fulfill the future financial goals of the investor at maturity. Follow the quick step to calculate FD interest rates using the online calculator.
- Firstly, choose the FD return calculator you want to use.
- Now, enter the investment amount along with the investment duration.
- Enter the FD interest rate and investment, cumulative or non-cumulative.
- Finally, calculate the maturity amount you will get from the fixed deposit.
Advantages of using FD Return Calculator – Complete List
1. Compare Different FD Schemes
An FD calculator helps choose the best plan by comparing the different fixed deposit interest rates offered by other banks. This will help you compare different plans and make better decisions to optimize your investments.
2. Choose the compounding period
With the FD return calculator, you can adjust the compounding period and determine which compounding suits you the best.
3. Assess the risks
You can know the amount you will get after the FD matures beforehand. This will help you make better investments, assess the risks, and see if they are worth the return.
4. Save calculation time
Manual calculations take a lot of time. Many figures and fields are involved. Using the online FD return calculator, you can do instant calculations by just providing some values like the deposit amount, tenure duration, and interest rate. Also, the layout and functions are very easy to understand, so anyone can easily use the tool.
5. Get Accurate calculations
The FD interest rate calculator never makes inaccurate calculations. You have to provide the required data; the tool will calculate and deliver accurate results.
Knowing the amount you will get after your FD matures is essential to have a fair idea of your future income. Max Life Insurance provides an easy-to-use online FD interest calculator. With this tool, you can make accurate calculations by providing some basic details, comparing different FD schemes, and choosing the best one with high fixed deposit interest rates. The layout is designed in such a way that everyone can use it with ease.
So, use an FD return calculator to have a fair idea of what returns you will get once your FD matures and plan your investments better. You can compare different fixed deposit interest rates, calculate the returns on various schemes and choose the best one. The best thing is that you can reach other FD plans and choose the best one. We hope you have a clear idea about the fixed deposit interest calculator and its importance and ways to use it.