Fixed Deposits (FDs) serve as a beneficial investment plan in which a depositor yields higher returns with zero risks. It is a type of term deposit in which a person keeps his money in a bank for a fixed tenure and earns a fixed amount of interest on it. Banks offer high-interest rates on FDs as compared to general savings accounts. The interest rates vary from bank to bank which makes it essential for a depositor to analyze all the available options thoroughly before opening an FD account. The best way of making an accurate analysis is by comparing different FD plans of different banks by using an FD calculator. An FD calculator provides the estimated maturity amount of a fixed deposit given the deposit amount, maturity tenure and the interest rate which is being offered by the selected bank. The advanced features of an FD calculator give enough reasons to a depositor to use it and avail its benefits.
Fixed deposits allow a depositor to earn guaranteed returns on his investment within a fixed period of time.
FD calculators are easily available as well are a consumer-friendly tool. It can be used to get a clear idea of how much wealth can be gained by investing in a particular fixed deposit plan. It might seem like an ordinary tool but it offers many benefits to the investors. In just a few clicks, one can compare all the FD plans that are available in the market and then choose a plan that best suits his needs.
3 Most Compelling Reasons To Use an FD Calculator
An FD calculator is a simple and easy-to-use tool but offers great utility. The key benefits of using it are as follows:
Delivers Accurate Results
Before freezing your valuable savings as a fixed deposit in a bank, it is important for you to calculate the returns that the deposit will yield after a certain period of time. This task involves complex mathematical calculations which can be tricky and time-consuming. Most importantly, a manual calculation possesses a high chance of errors. In that case, an FD calculator can help a depositor to save himself some time and get accurate results. One can easily avail of an FD calculator online by visiting the websites that are offering this service. It eliminates the chances of any errors and delivers the exact maturity amount of an FD plan. A wrong calculation can misguide a depositor which can also lead him to make a wrong investment decision. The easy access of FD calculators allows a depositor to get the accurate estimation of returns that he can expect from the chosen fixed deposit plan. However, it is also important to access this tool from a reliable source to generate optimum utility.
Helps In Choosing The Right Plan
The only way to earn maximum wealth through a fixed deposit is to choose the right plan. An FD calculator can easily help you in comparing all the plans that are available in the market and then choose the right one. All you need to do is enter the details of all the available plans one by one in the calculator, record the results to make a comparison and then select the plan that is the most beneficial according to your requirements. A lot of people trust the bank in which they have their savings account and take them as a reliable source of information. They are influenced by the convincing words of the bank authorities and choose any plan offered to them, only to realize later that there are better plans available in the market. You should not do the same mistake and make an independent decision based on accurate details and facts. Therefore, take the help of an FD calculator before opening a fixed deposit account.
Free Of Cost
An FD calculator is a tool that is absolutely free of cost. No website offering this service charges a single buck from its users and customers for using it. This means there is no restriction on its usage and one can make the optimum utilization of the tool without spending any money from his pocket. You can easily access this calculator multiple times to check out the maturity amount of all the fixed deposit plans that are offered by the banks. Even if you are not planning to open a fixed deposit account immediately, you can use this calculator to analyze the plans that are available and choose one that compliments your interests. Thereafter, you can pool your resources and save the amount that is needed for investing in your preferred plan.
Once you make an investment in a fixed deposit plan, there is no way you can undo the action. Yes, premature withdrawal is allowed by the banks, but they can charge up to 2% of the penalty, which will incur your loss. Therefore, it is always better to make the right decision by choosing the right plan with the help of an FD calculator.