If you are looking for a fixed deposit investment, you must be willing to know how much it would yield over the selected tenor. To find out the outlay, you can use an FD calculator. These calculators will help you feed in the relevant information asked and calculate how much you will receive at the end of the fixed deposit tenor.
FD Calculator offers you a smooth and quick user interface that makes the calculations considerably easier. They also aid you in taking the final decision of whether to invest in an FD or not.
These calculators are handy and allow you to do speedy calculations; they can also be used to understand various aspects like the tenor options available, the minimum and maximum range of investment, and the interest rates. Here are some applications of an FD calculator.
4 Applications of an FD Calculator at a glance
#1. To gain knowledge about the interest rates
You can get an idea of various interest rates that are offered at different tenor. By using this calculator, the investor can get exposure to the range of interest rates that are offered on the fixed deposits. The investor will get an estimate of the interest on which he can make the profitable investment.
#2. To know the Tenor Range
Usually, the tenor of fixed deposit ranges from 12 months to 60 months. With the help of a calculator, the investor can make an estimation of various lengths of tenor and the amount they will get at the time of maturity. This way, an FD calculator can help you in deciding the tenor which can fetch you better returns on investments.
#3. To Calculate Maturity amount of the Investment
Primarily, an FD calculator is used to know the amount that an investor will get at the time of maturity. By inserting the asked information like the tenor, interest rate and amount, you will be able to calculate the amount that you will get at the time of maturity.
#4. To Understand the Range of Principals that you can Invest
With the help of this calculator, you will be able to find the principal amount that you can Invest in Fixed Deposit. By using this calculator, you can estimate of the minimum and maximum range of the amount that you can invest in an FD. This calculator also helps you to know the interest rate for the amount that you wish to invest and also what you will earn at the end of the tenor.
Now, let’s know how a fixed deposit calculator can benefit you!
Benefits of Using a FD Calculator
- A fixed deposit calculator helps you to calculate the total maturity amount that you will earn at the end of the FD tenor.
- It helps you to conclude as whether to invest in an FD or not.
- By using a fixed deposit calculator you can learn the rate of interest that will be applicable on the amount that you will invest.
- An FD calculator showcases you the range of the tenor of your FD. Also, it helps you to estimate the principal amount that you can invest in an FD.
- With the help of an FD calculator, you can understand how the maturity amount gets affected by any change in interest rate, tenor or the principal.
Steps to Use an FD Calculator
- Firstly, choose the type of customer you are. Select whether you are an existing customer or a new customer. You also get the option of a senior citizen to select.
- Then, select the type of FD in which you want to invest. Here, you get the option of a cumulative FD and a non-cumulative FD to select.
- You will be asked to enter the fixed deposit amount that you want to invest. You also have to enter the tenor for which you want to invest.
- Now, you will automatically get the interest rate and the maturity amount that you will earn at the end of the tenor.
The Bottom Line
Now, when you have all the necessary information about an FD calculator, you should start using it. An FD calculator will help you to get an idea about the profit that you can make from investing in a fixed deposit scheme.