Fixed Deposit (FD) Calculator Online
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FD Calculator: Calculate Fixed Deposit Interest Online
Fixed deposits have always been a favourite mode of investment among the Indian masses. The fact that market fluctuations do not affect the fixed deposit interest charges makes it one of the safest methods of wealth appreciation.
However, it is better to compute the FD maturity amount for a specific tenure with a fixed deposit calculator to acquire the best deal.
Wondering why? We have a detailed answer for that; scroll down to know!
What is the significance of an FD Calculator?
As mentioned earlier, by using this particular financing tool, you can estimate your FD’s maturity amount, including the wealth gained once its term ends. All it requires is the prevailing rate of interest, tenure, and investment amount as input to calculate this total value.
Leading financial institutions provide such FD interest calculators on their websites, where you just need to provide these above-mentioned inputs to get an idea of your earnings. Assessing all of that, you can make a well-informed decision about which investment option you should choose to meet your financial goal.
Now that you know what a fixed deposit calculator is, go through the following passages below to know how it works.
How is the FD Maturity Amount Calculated?
FD amount or maturity amount refers to the total sum containing both principal and interest components that investors receive when FD tenure ends.
You can either use a traditional fixed deposit formula to estimate this amount or rely on an online FD calculator for this same purpose.
The FD formula is:
Here, A signifies maturity amount, P is principal or deposited amount, r stands for interest rate, and n denotes FD investment tenure.
How does an FD Calculator work?
This easily accessible online tool follows the same formula mentioned above, but the only difference is that you can simply provide the necessary inputs to get an instant result. Understanding how to use a fixed deposit calculator is crucial.
To carry out the online process, here is what you need to do:
- Step 1: Visit the online portal of your preferred bank and find the FD calculator online option.
- Step 2: Provide the amount you would like to deposit, including the rate of interest.
- Step 3: You also have to choose a specific duration (in months or years) for your fixed deposit and hit the ‘Calculate’ button. You will easily estimate the maturity amount using this tool and its in-built FD calculation formula.
For instance, if a person wants to check the interest per month for a specific deposited amount, the following steps should be followed:
- Since banks have two kinds of interest rates for normal account holders and senior citizens, it is required to select the right one before proceeding further.
- Select the preferred type of fixed deposit among quarterly payout, monthly payout, short-term deposit, etc.
- Choose the tenure and enter the amount the person would like to deposit.
Understanding the FD interest calculation formula will allow you to estimate your earnings manually.
Otherwise, based on all this information, the fixed deposit calculator will show the aggregate interest amount, including maturity value and interest per month. Also, note that the rate of interest differs according to the tenure you choose. Go through the interest table for this purpose to check which FD tenure will give you the maximum interest return.
What are the advantages of an FD Calculator?
Following are some compelling benefits of the FD calculator you need to consider:
- Since it provides the exact amount you will be receiving after the end of the FD tenure, you can plan your finances and other liabilities accordingly.
- The easy accessibility of the fixed deposit interest calculator helps you with an error-free value, and the hassle-free process saves time as well.
- This online tool is free for registered users who can use it innumerable times and compare returns for a different combination of the fixed deposit amount, rates, and tenure.
What if I withdraw before maturity?
If you have made up your mind to open an FD account, it is expected that you will not be withdrawing it before the tenure ends. However, when emergencies arise, people generally rely on these savings to tackle financial crunches.
Some financial institutions offer fixed deposits with a premature withdrawal facility. In that case, you can easily take out as much as you want from your FD account, where the financial institution will be charging you a specific amount as a penalty fee. These charges generally range from 0.5% to 1% and vary from one institution to another.
What is the process of Premature Withdrawal of FD?
It is always wise to use the FD calculator to open an account so that you do not have to face these charges for withdrawing before maturity. And in case you decide to do that, especially online, the following are some aspects you need to remember:
- You can only choose the online process of closing your FD prematurely if your deposits were booked online.
- You need to submit certain documents, fill up a form, and provide the fixed deposit receipt as well.
Even though the calculation primarily depends on the fixed tenure and the amount you have invested, factors like the country's economic condition, age of the depositor, etc., play equally vital roles. You also need to compare different financial institutions, their interest payouts using a fixed deposit calculator and choose one that offers maximum returns on your deposit.
So, go ahead, open an FD account today and secure your future!