What Is A Fixed Deposit Interest Calculator? Know How To Use It Here
Fixed deposits are the most secure form of growing money over the years. It also guarantees safety on the invested capital and the resultant interest amount. That is why several people prefer fixed deposits over investment plans.
If you are also planning to invest in FD, then you are making the right decision. But you will need some help to find out the best plan as per your investment capacity. In such cases, the help from a fixed deposit interest calculator, or FD maturity calculator, in short, can go a long way. Don’t worry if you are unaware of this calculator. Here you will know everything about a fixed deposit calculator, along with its benefits and usage.
What Is A Fixed Deposit Interest Calculator?
As the name truly suggests, a fixed deposit interest calculator calculates the interest amount of the fixed deposit. But to carry out this calculation, the calculator requires important information about the fixed deposit plan. This includes its interest rate, total investment, and tenure of investment. It will also require a more detailed description of each of the earlier mentioned information.
A fixed deposit interest calculator is mostly available online and is free for anyone to use. Banking and financial organizations usually host them on their website to provide assistance to their customers. The customers can use the calculator to know the returns of each plan by inputting its details. And find out a good plan for themselves.
How To Use A Fixed Deposit Interest Calculator?
There are some preventive measures to take before using a fixed deposit interest calculator. A user must verify if it is a genuine product and not just a marketing gimmick by fake online sellers. So for safety reasons, they should stick to FD maturity calculators available on the websites of scheduled banks. For this, you can use the Reserve Bank of India’s official list of websites of registered banks in India.
Moving on, the usage of a fixed deposit interest calculator is very simple as it only has very few steps. Given below is the step-by-step procedure for using a fixed deposit interest calculator:
Enter a value in the Fixed Deposit Amount column
Enter a value in the Rate of Interest column
Enter the value in the Tenure column (in years or months)
Click on Calculate
Capital Invested – This column displays the FD amount that the user inputs.
Interest Earned – This field displays the total interest amount earned over the tenure.
Total Maturity Amount – This field displays the sum of the above two fields, which is the total amount the investor gets in hand.
Benefits Of A Fixed Deposit Interest Calculator
A fixed deposit interest calculator’s benefit is not limited to finding the interest amount. It also has several other useful benefits, which is the reason why several people use it before choosing plans for themselves. Given below are some of those benefits.
The results of an FD maturity calculator are always exact, especially when it is about the FD plans of the hosting website. It is because the strong coding and links to the database of plans allow it to produce the correct results. So the user does not need to worry about the result and use it as solid proof or return.
Useful In Income Tax Filings
An FD interest calculator is a must for every taxpayer. They can know the precise amount of returns from the plan, which helps them in their ITR filings, particularly in advance ITR filings. Click here to know more about the important things in a checklist for ITR filing.
One of the best benefits of an FD maturity calculator is that it helps in plan comparison. The user can compare various plans based on the resulting interest amounts of various plans for the same one-time deposit amount. Thus, allowing them to have the most profitable plan among the plenty of available plans.
Free And Easy To Use
Another benefit for people using this amazing calculator is that it is totally free and very easy to use. It only involves inputting a few details of any FD plans. And users can easily know these plan details from the brochure of the FD.
After learning about the fixed deposit calculator and every aspect surrounding its functioning, you won’t have trouble using one. And you must use the FD maturity calculator before finalizing an FD plan, not just for its ease of calculation but also for its accuracy. You can’t get such accuracy in your personal calculations.
As these calculators are on the banking institutions’ websites, they can even provide the most accurate results based on the selected plans. And if you like the interest returns of the plan, you can move forward with purchasing a fixed deposit plan online. Thus further easing your purchasing of a fixed deposit.