You can use fixed deposit calculators to predict the amount paid out after a set period. They are especially useful for setting up an investment plan, as it helps you estimate how much interest income you will make before you invest in a fixed deposit. To use a fixed deposit calculator, you must input all of the following: current interest rate, term and how much money you wish to invest. As an output, it will show whether your investment was profitable or not and also how much money you’ve earned from your investment over time.
Benefits of fixed deposit calculator
- When calculating your maturity amount, do not adjust for inflation (unless the rate of inflation was significantly reduced during your term).
- A bank is a financial institution that lends money, accepts deposits and provides other financial services. Compare the interest rates on letters of credit and other loan products from multiple banks to find the best stationery store for your business, whether big or small.
- Make sure your FD calculations are correct and avoid making any mistakes. Calculations can fail, sometimes without warning. A mistake can make you look bad in front of your boss or increase the likelihood of a test failing because of your incorrect calculations
- Whether you’re calculating the amount of maturity on digital calculators, or tracking a spreadsheet with multiple formulas, we’ve got the right tools for the job. Quickly calculate your interest and principal in seconds.
- Compare the maturity amount for your fixed deposit with other financial institutions to get an idea of how much you can earn by changing banks.
How to Use FD Calculator for FD Calculations?
- Enter the deposit amount
- Enter the interest rate
- Enter the tenure duration
What is a Fixed Deposit?
Fixed deposit rate is the best way to earn decent returns when investing in a short term period. It provides assured returns over time and you can easily lock in your balance in FD to earn interest.
How Does an FD Account Work?
A fixed deposit is a savings account that lets you lock in an amount of money for a specific term and earn interest on that interest. You can access your money throughout the term by choosing the interval at which interest is added to the principal amount.
If you’re eligible for a higher rate of interest with your FD account, you can invest more money without losing any principal value. We can open any FD account with various tenures and rates, depending on your requirements. Senior citizens are eligible for higher rates, ranging from 0.25 to 0.65% above the current rate. If you’re an NRI, we offer NRE and NRO FDs as well.
Generally speaking, you can open a term deposit account with a bank if you already have an existing savings account with that company. Some of these financial institutions will let you start a fixed-income fund even if you don’t have a savings account with them, but will ask for extensive documentation beforehand.
Fixed Deposit Calculation Formula
When an individual deposits money in a fixed deposit, the bank will use its discretion to determine the interest rate. The bank interest rate on a bank fixed deposit is pre-determined when the investment is made and remains consistent over the investment duration.
The interest rate is one of the key components that influence the risk-return ratio of an investment. The longer an investor stays engaged, the greater the interest rate in a given time period will be.
- Someone who is 65 years old is considered a senior citizen, but you may not be able to get a preferred interest rate. Instead of this, check what your current bank offers for seniors. You also can learn about how your bank defines senior citizens by looking at its website or talking to a customer service representative.
- The economy is a primary determinant in interest rates. The price of money has the most direct impact on your credit card interest repayments, as well as the overall principal balance of all outstanding debt.
- Two ways to calculate the interest on the fixed deposit are simple interest and compound interest.