FD interest rate calculators are used to calculate the total amount and interest that FD holders get on maturity. The FD becomes mature when its tenure period ends. It is important to first understand the basics of FD to move into insightsinto the Fixed deposit interest rate calculator.
In this article, we are going to tell you about fixed deposits, fixed deposit interest rates, factors that affect fixed deposits, etc.
What are fixed deposits?
The banks and lenders provide the many investment tools that are known as FD. It is a kind of term deposit in which you can deposit money for high-interest rate than a savings account.
The money that is invested for a fixed term lies between 7 days to 10 days at a fixed rate of interest. You can earn interest on your FD according to the terms and conditions. There are two options available to get interested in your FD. You can get interest credit in your bank account, or you can open your deposit account and get the FD interest when it matures.
Features of fixed deposits
There are various features of fixed deposits you should know to use it.
- The FD allows the investors to earn high interest on it. The money deposited in your FD account is only allowed for one time. If you want to keep more amount in your Fixed deposits, you must open your new FD.
- It is easy to renew your fixed deposits.
- According to the income tax act, tax is deducted from fixed deposits’ interest rate at source.
- Liquidity is less in fixed deposits, but the interest rate is higher.
Use of Fixed deposit interest rate calculator
FD interest rate calculator is a tool that is available to calculate the returns provided by fixed deposits. By entering some basic details on fixed deposits, you can calculate your maturity amount on fixed deposits.
Keep in your mind that the maturity amount of FD differs with the amount you deposit, type of deposit, type of customer, and tenure. Here are the simple steps you need to follow to use the FD calculator.
- You have to first conduct the Google search and type FD, the online calculator.
- Choose the type of customer. Remember that all options will provide different interest rates.
- Choose the type of F.D
- Enter the amount that you want to invest in FD. Now choose the tenure of your FD investment.
- Then the results will be displayed on the calculator according to the inputs you give to it.
FD is one of the popular investment tools that allow people to earn interest on it. If you also want to invest in it, you should use the FD interest rate calculator to determine the interest.
Moreover, ensure to keep accurate details on the FD calculator, so it will calculate the right amount of interest you need to pay for it.