As a form of savings, Fixed Deposit (FD) is one of the safest and most popular investments in India with fixed returns. FD Calculator: Make it easier than ever to find the interest income and maturity amount of your fixed deposit portfolio. We explain here how the FD Calculator works, its advantages and how it is different from other investment solutions.
Understanding the FD Calculator
An FD Calculator is an online application that calculates the maturity value of a fixed deposit by supplying values such as principal, interest rate, tenure, etc. It offers fast and accurate information to make investors budget wisely.
The FD Calculator is one such tool which should be kept in the stock of all investors considering fixed deposit investment. It allows you to invest more wisely, by giving you accurate estimates and cross-referencing with other investments. FD Calculator now to track your investments accurately with precision.
Key Features
- Realistic Estimates: Estimates interest earned and maturity amount.
- Customizable Inputs: Enables customization in deposit amount, tenure, and interest rate.
- Interest Types: Supports simple and compound interest calculations.
How to Use the FD Calculator
- Enter Principal Amount: Enter the amount that you want to invest in the FD.
- Select Tenure: Type in the period of deposit, months or years.
- Set Interest Rate: Set the interest rate from the bank/banking company.
- Choose Interest Compounding Frequency: Monthly, quarterly, half-yearly, or once a year.
- Review Results: Calculator will show you the rate of interest and maturity date.
Comparison with Other Investment Options
| Investment Option | Average Returns | Risk Level | Liquidity |
|---|---|---|---|
| Fixed Deposit (FD) | 5% - 7% | Low | Low (Premature withdrawal with penalty) |
| Mutual Funds | 8% - 12% | Moderate to High | High |
| Stocks | 10% - 15% (varies) | High | High |
| Public Provident Fund (PPF) | 7% - 8% | Low | Low (15-year lock-in) |
| Real Estate | 7% - 10% | Moderate | Low |
Advantages of Using the FD Calculator
- Time-Saving: Quickly computes maturity values without manual calculations.
- Accurate Results: Reduces the risk of errors in interest calculations.
- Financial Planning: Helps investors compare FDs with other investment options.
- Customizable: Adapts to various bank-specific interest rates and compounding frequencies.