Simplifying Financial Calculations with an FD Rate Calculator
Having a financial record up to date is important to meet your goals. There are lots of
financial schemes that help you to get monetary benefits. Fixed Deposit (FD) is
among them. It is beneficial for investing your money for some time and getting an
interest rate on it.
There are lots of different banks that offer different interest rates on your invested
money in FDs. It helps you compare each offer to choose the best one. Also, calculate
the FD rate to understand how much money you will receive after tenure.
FD is a beneficial investment plan, but understanding it is also crucial. Knowing
about FD and how it works, you will easily understand its terms and conditions. To
calculate your FD rate, you can use the FD rate calculator. Most people need to learn
about this and how to use it.
What is a Fixed Deposit?
Before going further, understanding the FD meaning is important. An FD is an
investment plan offered by banks and financial institutions. In an FD, you invest your
money for some time, and the bank gives you interest on your invested money. FD
schemes are useful for investment purposes. Usually, an FD interest rate starts from
3.0% and can go as high as 7.1% (maybe higher).
It can differ from bank to bank. The tenure for an FD can start from seven days to ten
years. After completing the FD period, you will receive your invested amount and
interest. You can calculate your FD rate by using an FD rate calculator. It is very easy
to use, and we shall discuss further.
Benefits of a Fixed Deposit
As most investment plans offer benefits, FDs also offer many benefits for investors.
Let’s discuss it here:
1.Interest Rate
One of the major advantages of an FD is the interest rate. An alluring interest rate is
offered when you place your money in an FD. You will receive your invested funds
and an interest rate after your investment. Choose wisely since different institutions
provide various interest rates.
2.Safe Investment Plan
An FD offers a safe investment plan. Your invested money will be safe in your FD
plan. Your FD interest rate is also unaffected by market changes. Agreement
parameters will determine it.
3.Hassle-free Investment Process
FDs offer a hassle-free investment process. You can book your FD online or offline
both ways. Your savings account will receive your matured FD.
4.Compound Interest
An FD offers compound interest benefits. You can reinvest your money after tenure
for a specific period. You get two benefits. You will earn compound interest on the
invested money and the interest rate.
5.Loan Approval
Loan approval is among the top benefits of FD. By having an FD through a savings
account, you can apply for a loan in your bank. Your bank will approve your loan
amount easily and offer attractive offers as you will be their customer.
How to Calculate Your Fixed Deposit Investment
Return?
Most people need to learn to calculate the FD rate using an online FD rate
calculator. There are lots of options available online for FD rate calculators that you
can use. Every bank’s official website has an FD rate calculator that you can use. Now,
most people don’t know how to use it, so let’s understand it here:
● Firstly, you must put your invested money in the total invested amount option.
● Secondly, fill in the interest rate you are getting from your FD scheme.
● Thirdly, put the tenure of the FD.
● Now, it will show the total value of your invested money.
How Fixed Deposit Works?
The interest rate and tenure will be fixed in an FD. An FD bank offers an investment
plan where if the investor invests money in an FD, then the bank holds that money
for a specific period, which starts from 7 days to 10 years, and gives an interest rate to
the investor.
The interest rate depends upon the tenure chosen by the investor. Along with this,
the investor can only withdraw money after the due date of the FD. Some banks offer
premature money withdrawals at a lower interest rate. It depends upon the bank’s
terms and conditions. After the maturity of your FD bank, the invested money is
transferred into your bank account along with the interest rate.
If you are planning to invest your money in an FD, you should know the meaning of
FD, the interest rate the bank offers it, the tenure of the FD, and the terms applicable
to the FD. There are different types of FDs available in banks, so before investing your
money, it is vital to research the suitable FD type for your needs.
Wrapping Up
In an FD, you can calculate your total value by using an online FD calculator, as we
have discussed before. It also offers many benefits, from attractive interest rates to
loan approval. So, if you want to invest your money in FD, go for it
