A fixed deposit interest calculator helps calculate your returns and payouts, and also helps you select a preferable investment plan for you. When you invest online or even offline in a fixed deposit the main concern is how much you should invest and for how long.
You can resolve these problems by using a fixed deposit interest calculator.
Using an FD calculator online is easy to use due to its simple and systematic design and simple user interface, thereby making it a preferred choice for investors across all age groups and income brackets. Here are a few ways how an online FD calculator can help you:
How much will you get after investing a certain amount of money is always a concern. You can enter the amount of money that you want to invest and you can easily calculate your interest earnings. Based on your time period of the investment your rate of interest will vary.
Once you select the investment tenor, the online FD calculator will automatically display the interest rate applicable to your investment and the maturity date of your investment.
Select a Preferable Scheme
When you are investing you want it to be on your own terms. An online FD calculator helps you choose the preferable scheme for you and how will you get your payouts. They are a variety of options for periodic interest payouts which include monthly, quarterly, half-yearly, and yearly payments.
The rate of interest decreases when you opt for a monthly payout and it increases as you go for a longer duration of payout. It is always advisable to go for a non-cumulative FD as it pays you more because the interest is reinvested and compounded to fetch you higher returns.
Helps You with Your Investment Plan
A fixed deposit interest calculator helps you make up your investment plan. When you are investing it is very important to have an investment plan. With an online FD calculator, you can calculate the amount you want to invest and the return on investment will fetch you.
Accordingly, you can ladder your deposits to meet major financial goals over a period of let’s say, 10 years.
In case you need immediate liquid cash, you can easily break one (or more) of these deposits and the remaining deposits will stay intact. This is helpful in a falling interest rate regime so that you don’t have to reinvest at a lower interest rate.
There are various questions we have when we are investing and when we look for answers online they often confuse us even more. Using anonline FD calculator helps you answer all the questions at one place. You don’t have to consult anyone while investing.
You decide how you want to invest and if it’s convenient for you to manage your investments without the help of any financial advisors.
Don’t Have to Use Complicated Formulas
When you use an online FD calculator you don’t have to use complicated formulas to calculate your return on investment. Using compound interest formulas for calculating your interest can be confusing and time-consuming. A fixed deposit interest calculator makes it a matter of a few clicks.
You can easily open an FD account online with a simple application form. Online fixed deposit is gaining traction among investors for various reasons. Mainly because it is convenient to invest from the comfort of your home and also because you can earn additional interest rate benefit (0.10% extra over and above regular FD rates).
FD online calculator makes it convenient for you to invest in a fixed deposit. It is easy to use and helps while making an investment plan to meet your financial goals. You can easily calculate the amount you will receive on maturity, the interest earnings, and the maturity date.
You don’t have to use complicated compound interest formulas to calculate your interest. An FD calculator makes it simple for you to choose the right FD plan in just a few clicks.
Compare FDs Conveniently
Comparing different fixed deposit plans can be cumbersome if you try to do it the old way by comparing their interest rates, tenors, liquidity options, etc. However, the same comparison can be done by using an FD calculator in minutes. It not only minimizes your efforts but also helps you to make a decision based on your financial requirements quickly.
Minimizes the Errors
Manual FD interest calculation is complex as it depends on the types of fixed deposit you are investing in. The interest of a cumulative FD is compounded quarterly but the interest applicable on a non-cumulative FD depends on the interest payout frequency.
On the other hand, while calculating the returns on an FD calculator, you just have to select whether you are interested in cumulative FD or non-cumulative FD and the integrated program will calculate the interest earnings and maturity value automatically.
The errors that can be introduced during manual calculation are eliminated and this makes your decision much more accurate and transparent.