Investments help deal with the inevitable reality of life: the growing cost of living. Your investment returns can boost your current primary income, letting you realise and fulfil various goals and desires. Furthermore, your investment returns can become a primary and reliable income source as you retire. Overall, you should actively invest to improve your present and future financial standing.
An FD is a simple investment option that offers you a modest interest income through your opted tenure. Since FD is a standard investment option, you can invest with any leading bank of your choice. Invest with a bank offering the most competitive FD interest rates to reap maximum benefit from your investment.
The FD calculator is an incredible online tool to use to go about your investment. Let us understand this tool better.
What is the FD calculator? How does it help?
As mentioned, the FD calculator helps determine the interest and amount you will earn at maturity. You can find it readily available for use on every bank website or app. You can use the tool unlimited times, free of charge. Here are the different ways an FD calculator can help you:
- Compare FD interest rates
Every bank extends a different interest rate on FD. Hence, comparison is important to determine the suitable bank for investment. The FD calculator estimates your interest earnings and maturity amount, helping you compare and decide.
- Decide investment variables
Not sure how much money you should invest in building the specific financial corpus you have in mind? The FD calculator is useful for deciding on the investment amount and tenure. Typically, consider making a significant investment for a longer tenure to maximise interest earnings.
- Simplifies calculations
You can calculate the FD maturity amount by applying a formula manually. However, it requires you to deal with several variables and complex calculations that can be painstaking. The FD calculator simplifies investment calculations. You need to have investment data handy and feed them in designated slots. You get accurate results as you calculate.
- Time-saving
Besides being complex, manual calculations are time-consuming. However, thanks to the FD calculator, you just need to spare a few minutes to calculate your investment returns. This lets you plan your investment systematically without any hassles. Download the Banking App and access the online calculator instantly.
What to remember when using the FD calculator?
Note that the FD calculator merely offers an estimate of the interest income and maturity amount. The actual maturity amount may differ due to changes in interest rates, the application of fees, and taxes. Hence, reach out to your bank for specific information. Read all the terms and conditions thoroughly before investing.