What are the benefits of using an online FD calculator?
A fixed deposit is an investment provision offered by several banks. They could have a higher rate of interest, along with a few terms and conditions. The amount you choose to invest will be locked for a predetermined tenure or period. An FD calculator will help you determine the interest and amount that will get accrued at the time of its maturity. It is a very popular tool online that will help you estimate the interest earned and the maturity amount from your FD. It is a convenient and easy-to-use tool. It will consider different factors, like the principal amount, the type of deposit scheme, the interest rates and the tenure, before calculating the results.
What are the types of fixed deposits?
There are two types of fixed deposits, mainly cumulative and non-cumulative. When an interest rate is compounded and paid out after the majority, it is called a cumulative fixed deposit. If the deposits pay you interest. They are non-cumulative deposits. You can opt for a quarterly, monthly, half-yearly or yearly interest option in this case. Either way, calculating the values and comparing them before you make a choice is essential.
Read along to find the benefits of using an FD calculator:
1. Decision making
As the tool provides accurate rates, it will help you compare the different returns on various investments. You can also compare the periods and choose the scheme that suits you the best. You can be assured of error-free calculations and compare different interest rates before you choose your FD plan.
2. Convenience
As mentioned, this tool is easy to use and is only a tap away. Maturity calculations can be a very tedious and complex process. With the help of a calculator, you can relax and let it do all the hard work for you. It will save you a lot of time and help you make better decisions, as it gives you accurate figures. As it is online, you can use it whenever you want at a place of comfort without having to worry about anything else.
3. Quick results
There is no need to double-check the values in an online FD calculator. It gives you quick results for a reason. It can calculate the amounts a lot faster than any digital calculator or spreadsheet. It requires minimum effort from your side and you can rely on the values provided. So, if you had a tough time crunching about the values and struggled to safely invest your money, you have an easy option to choose wisely now.
4. Efficient
A calculator simplifies a time-consuming and complex process that has multiple variables. It is a very efficient tool to help you calculate the periodic interest on your deposits at different tenures and respective amounts. Its flexibility makes it an indispensable tool before you make an FD investment.
Conclusion
As an overview, using the 5paisa fixed deposit calculator can simplify your decision-making. You can also use other tools, like a systematic withdrawal plan or SWP calculator, to help ease your investment journey. This tool will help you calculate the monthly withdrawals precisely as per the amount you invest. With the advent of technology, these online calculators are simplifying the lives of investors and encouraging more to join the financially enriching voyage.
