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The primary reason why people invest in a Fixed Deposit (FD) scheme is that it provides guaranteed returns on the capital they invest. An FD account is most people’s first choice for a secure investment as this does not require much research and monitoring. Investors don’t have to worry about their invested capital and expected returns when they invest in a Fixed Deposit scheme. Banks determine the interest returns on every FD account when an investor opens an FD account. These returns remain unchanged under all market, social, political, and economic conditions.
Banks calculator for Fixed Deposits helps an investor determine the earnings they get from this investment. It is a free to use tool, and it is available on the bank’s website. Here are all the details about a Fixed Deposit calculator and why to use it.
What is a Calculator Fixed Deposit Tool?
The Calculator for fixed deposit tool is accessible to investors on the bank’s website or mobile application. The tool is free to use for all and the investor can use it any number of times. It assists investors in determining the interest they can earn from a Fixed Deposit investment.
Banks offer different interest rates on –
- Various categories of Fixed Deposit schemes
- Different invested amounts, durations, and the investor’s age.
Investors need to determine the best combination of various factors to maximise their return on investment. A Fixed Deposit calculator helps them with the interest calculation. Use the free EMI tool as many times as you want, for various combinations of FD amounts and durations to reach the expected returns.
How to Use a Fixed Deposit Calculator?
Using a Fixed Deposit calculator is a simple and quick process. FD calculator computes the EMI using the following procedure:
- Visit the bank’s website or download its mobile application and go to the Fixed Deposit section.
- Click on the FD calculator option.
- Now the investors need to choose from – “new or existing customers”
- Next, they need to choose the investor segment. Typically, senior citizen Fixed Deposit schemes offer 0.5% higher interest returns than regular FDs. Therefore, investors should choose the investment category carefully.
- After that, select the type of Fixed Deposit scheme. Investors have the freedom to choose the frequency of interest payouts on Fixed Deposit schemes. They may choose between monthly or quarterly payout, or opt to receive the entire interest earned at maturity along with the initial investment.
- After this, they have to enter the date of opening a Fixed Deposit account and the duration of the FD plan.
- The investor needs to enter the amount they want to invest in the Fixed Deposit scheme.
- Once all this is done, the investor needs to click on the ‘calculate’ button to see the instant results of the calculation. The calculator shows the interest investors will earn, the maturity amount, and the maturity date for the combination the investor chooses.
Why Use a Fixed Deposit Calculator?
An individual can use the FD calculator for the following benefits:
- A Fixed Deposit calculator simplifies the complex interest calculation for the customer. So the investors do not have to do lengthy and complex mathematical calculations on pen and paper, which are prone to errors and take up too much time. The calculator shows results in just a few clicks instantly.
- An investor can know the returns on their FD investment in advance by using a Fixed Deposit calculator. It can help them in making accurate financial commitments in the future. The calculator helps them know where they would stand financially when the FD matures. It can save an investor from unpleasant and embarrassing situations of over-commitment and unrealistic financial goals.
- Various banks offer different interest rates on Fixed Deposit investments. It is almost impossible to manually calculate the returns investors can earn by investing in the various FD schemes of banks. A Fixed Deposit calculator can help them choose the most suitable FD scheme offering the best interest returns on a Fixed Deposit investment.
A Fixed Deposit calculator helps a person make informed, logical, and sensible decisions on his FD investment.
