Grow Your Finances by Using FD Calculator Wisely

If you are planning to invest in a fixed deposit (FD), you need to consider various things. You need to find a trustworthy scheme, decide on an investment plan that can grow your investments in the most effective way. An FD calculator can help you in finalizing the most suitable FD for you. The calculator accounts for the tenure of the investment, principal amount, interest rate, and your preferred type of FD. It provides you with the accurate maturity value so that you can make the right decision when choosing an FD. You can also use the calculator to determine the monthly earning in the form of the interest rate paid to you.

How to use the FD calculator

There are various types of FD calculators available on the Web. However, the basic process of using them is almost the same. Listed below are the steps involved to determine the maturity value:

  • Step 1

Enter the amount you want to invest

  • Step 2

Provide the tenure of the FD

  • Step 3

Enter the FD interest rates

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  • Step 4

Click/Press the ’Calculate’ button

The calculator will then show you the maturity value. Every reputed financial institution has an FD calculator to help you find the desired result.

How does an FD calculator help?

An FD calculator is designed to provide you with the ease of use and flexibility.  You need to use the calculator is to compare the FDs offered by different financial companies. To make the process easier, the calculator offers a fast and easy solution. All you need to do is to find the interest rates offered by different FDs and then use that with your deposit amount and FD tenure to find their maturity amounts. This way, you can find out which FD offers the highest returns and make your investment accordingly.

You can use the FD calculator before reinvesting as well. During the maturity of your existing FD, if you decide to reinvest then it is important to decide whether you want to continue with the same FD or if you want to use a new one. The changing interest rates affect your returns greatly. All you have to do to earn the highest maturity value is to check if any bank is offering a higher return compared to your last FD and use the calculator to research about the accurate numbers.

Calculating the simple and compound interests

When it comes to the fixed deposit interest rates paid on your investment, financial institutions use two different methods. The first one is the simple interest, which is determined by calculating the interest rate paid on the principal amount that you invest. The second method is compound interest. This is calculated based on n your principal and the interest that you earn from it. The type of method used for your FD depends on the kind of FD you choose. The FD calculator helps you to easily compute the result, as it offers you to choose your desired type of interest rate that you wish to receive on your investment.

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The calculators show you the FD rates of 2019 so that you can find the most accurate and up-to-date result from your calculation. This will help you invest in the fixed deposit that is most suitable to you.

Vikas Agarwal
the authorVikas Agarwal
Vikas Agarwal is an IIT-Varanasi graduate in Chemical Engineering. He is the Founder and CEO of - an investment advisory website. He is a Business Development Professional but a Value Investor at heart. He writes articles on Finaacle, which focus on simplifying the art of investing and the causes of human misjudgment when it comes to investing. He also shares his experiences as an investor and lessons from some of the greatest investors of all time.

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