A fixed deposit is one of the safest investment options out there. By investing a specific amount of your choice for a set duration, you get guaranteed returns at the prevailing interest rates. Usually, fixed deposit interest rates vary across banks, so it’s a good idea to go through the interest rates being offered before you decide to invest.
A fixed deposit interest calculator can be a great way of estimating the returns that you can get on your investment, and approximating the duration you need to stay invested to get those returns. Moreover, it also helps you in choosing the most appropriate FD plans that best meets your financial goals.
What is a FD Maturity Calculator?
A FD maturity calculator is a free tool on offer across various bank sites that helps you estimate the amount that you would need to invest, and the period that you need to stay invested to get desired returns. Moreover, by displaying plans across banks it helps you save the time that would otherwise be spent on opening and exploring various bank websites. Further, calculating returns based on the rate of interest can be a complicated task requiring a lot of effort, a fixed deposit interest calculator automates the entire process, and simplifies it by displaying the results directly on your screen.
How Does a FD Maturity Calculator Work?
A FD maturity calculator factors in multiple parameters before giving results. Here are a few of the points that it takes into account before displaying results:
- Enter the category of citizen you fall under, i.e., whether you are a senior citizen or a non-senior citizen
- Choose your Fixed deposit type whether cumulative, or non-cumulative
- Choose the amount for your fixed deposit
- Choose the duration of the deposit
- Input any other additional details as needed in to the FD calculator
As you can see, the entire process requires you to only enter a few details to show appropriate results; thereby helping shave off hours from having to manually calculate individual results across hundreds of banks and FD plans.
Now that you are familiar with the concept of a fixed deposit interest calculator, and how it works. Let’s dive down a little into the various benefits it offers to the end-investor!
Benefits of Fixed Deposit Interest Calculator
Simplified Process of Interest Calculation
The basic function of this tool is to simplify the entire interest calculation process. Although, a person can decide to all the calculations manually, it is bound to be a tedious process that might sometimes take days if we factor in the number of banks and FD plans available in the market. On the other hand, by entering a few basic details into the tool, the same process can be completed within minutes, and that too across banks and FD plans all at the same time.
Helps in Evaluating Risks
The tool lets you approximate your returns by letting you know how much you need to invest, and the duration you need to stay invested in the plan for it to get you the returns you expect. Even though, an FD account is one of the safest options for people who are risk averse and have little appetite for taking risks; still, it does help to know the kind of investment you would need to make to meet your financial goals for the future.
As you may have guessed by now, a fixed deposit interest calculator helps you save time. There’s no manual process involved, and you only need to enter a few very basic details for results to start showing up.
Compare Multiple Plans Across Banks
The market is ripe for investors, as there are tons of banks and investment options available. That means, FD plans can be as diverse as any other investment instrument. Therefore, trying to compare individual plans offered by a particular plan, and then moving on to the next one by another bank can prove to be a futile exercise, as that only delays your investment because of the amount of time it would take for you to reach a decision. An FD maturity calculator helps you bypass the entire process by displaying results that best match with your financial goals within a few minutes; thereby, speeding up the entire process.
Diversify Your Portfolio
Since financial decisions should always be based on logic and facts, and never by sentiment alone. Even though you may be risk averse, sometimes diversifying your investment portfolio is the only realistic way of meeting your financial goals. By approximating the returns based on the fixed deposit interest rates, duration and investment amount, a fixed deposit interest calculator can help you plan better.
And now that you know the benefits of a fixed interest deposit calculator and where to find that calculator, it’s time to take that first step towards building a better financial future for yourself and your loved ones!