Why use the FD interest rate calculator? FD interest rate calculators calculate the total amount and interest obtained by FD holders. When the tenure of FD ends, the maturity of FD begins. Therefore, banks and lenders offer a good investment system known as FD.
An FD is referred to as a term deposit, in which you can deposit money for high-interest rate than a savings account. In this article, we will tell you about the FD interest rate using the FD calculator, from its basics to its working.
Overview of FD
Banks and non-bank institutions provide an investment scheme called FD. FD is a term deposit in which you can deposit money for a higher interest rate than a savings account.
As the name suggests, FD fixed deposits are used to keep the money for a fixed term at a fixed rate of interest. The FD account holders can earn the interest on a fixed deposit according to specified terms and conditions.
Here are the features of fixed deposits that help you to understand them more precisely.
- The PPF scheme allows investors to earn a high rate of interest over the money stored in it. The money deposited in the PPF account is done as a one time payment.
- If you want to deposit more, you must open a new FD account.
- You can easily renew your FD account.
- The liquidity term is less in FD account, but the interest rate is higher.
Benefits of investing in fixed deposits
Here are the following benefits of investing in fixed deposits:
- It provides a great level of stability as one of safest investment schemes
- There is no principal loss risk, and assured returns are provided on FD
- It is easy to manage the monthly expenses, and you can choose it for interest payout based on the month
- The market fluctuations do not impact Fixed deposits, which ensures the safety of the capital investment
- It provides a great rate of interest
- It provides great returns for senior citizens
Uses of FD interest calculator
The FD calculator is an investment tool that enables the calculation of the returns provided by FD. Once you enter the basic details, you can calculate the maturity amount of FD.
Remember that the maturity amount of FD differs with deposit type, amount deposit, customer type and tenure. Here are the steps you should follow to use the FD interest calculator.
- Search the FD interest calculator online on Google
- Choose the type of customer. All the options will provide the different interest rate
- Choose the FD type
- Enter the amount of deposit that you want to invest. Now, choose the tenure of the FD.
Before you narrow down to an investment option, ensures that you have a clear look at applicable terms and returns provided on terms and conditions. It is very easy and simple to use the FD interest calculator.