Have you invested in a fixed deposit? Are
you now struggling to know the final amount you will receive when your FD
matures? Well, the calculation of the maturity value of the FD was daunting
when we did not have a tool called the fixed deposit calculator.
A fixed deposit calculator or FD calculator
can quickly and accurately calculate the maturity amount of your FD. You can
use the calculator to know the amount of interest you can earn on an FD.
How does it work?
FD calculator is user-friendly and uses formula
instead of manual calculations. You can find the FD calculator all over the
internet. You just need to mention the basic things such as the deposit term,
the type of fixed deposit, the investment amount, and the rate of interest. The
FD calculator will instantly calculate the value you will get at the time of
maturity. The cost of the investment also depends on the interest compounding
frequency, whether it is monthly, quarterly, half-yearly, or annually.
Deposits can be of two types. The first is
the periodic interest payout where a fixed interest is received at the end of
every period, and the interest remains the same all through the FD period.
Second is the cumulative deposit, where the compound interest concept applies.
FD calculator can calculate both the simple
interest and compound interest on the FD amount. The initial FD amount is computed
using simple interest, but the original amount and subsequent interest are
calculated using compound interest. The FD calculator can also calculate the interest
earned along with the total amount that the FD holder will receive at the time
of the maturity.
To calculate the maturity amount, you need
to know the following:
Deposit amount, which is the amount you
invested in a fixed deposit scheme
Deposit tenure is the time for which the
amount is invested in FD
Deposit interest rate, which is the rate of
return you earn
Once you enter these details in the FD
calculator, you need to click on ‘Calculate’. Then, you will get the result.
You save your time, calculation effort, and
money too. You can also compare different fixed deposits schemes offered by the
various bank and companies to know which FD scheme is fetching you the maximum
returns. This way, you can plan your investments in a better way.
