How Smart Investors Use an FD Calculator
Are you looking to make a fixed deposit investment? If so, you may want to know how much it would yield over your chosen tenor. In such cases, you can always use an FD calculator. These calculators help you feed in the relevant information and calculate how much you will receive at the end of the tenor without needing you to put pen to paper and figure out the formula for compounding interest!
FD calculators have a smooth user interface that makes them remarkably easy to use. They can also aid you in the final decision making of whether to invest in FDs. Alternatively, these calculators can give you important information like the minimum and maximum range of investment, the tenor options available, and the interest rates.
How FD Calculators Can Help You make a Good Investment
The use of an FD calculator is not time-bound. You can use them before or after investing. Where prospective investors can use them as a measure estimation, other investors can use them as a tool for reviewing the investment.
Below are Listed the Numerous Applications of FD Calculators:
- Tracking the Return on Investment: Return on investment is the primary concern of any investor. Over a period of time, gaining profitable return on investment is what we all look forward to. Thus, FD calculators can help you forecast the returns you would receive on your investment. Also, if you manually add other costs, you can also calculate the net return on investment.
- Comparing Calculated Results to Real Results:Once you have received the matured amount you can always re-calculate and see if you received returns as planned. However, it is important to make a note of floating interest rates when doing this comparison, as floating rates keep changing over time.
- Estimating How Much to Invest: Since these calculators let you view the returns at various principal amounts, they can help you narrow down on the amount to be invested. You can view the interest rates on various amounts and then select an amount that would give you desirable results.
- Observe the Growth of your Investment Along the Tenor: The tenor is the period of time over which your investment grows. This calculator lets you see how much the investment could grow for different tenor. You can thus decide upon a suitable tenor.
- Getting Acquainted to the Interest Rates: Interest rates vary amongst institutions. However, using a fixed deposit calculator can let you view the various FD interest rates and the returns that you could receive on them.
- Estimating the Maturity: Maturity is the rate by which your investment grows over time. The calculation can enable you to understand the amount by which your investment would grow over the tenor.
Benefits of Using FD Calculators
FD calculators can:
- Aid you in making the final decision of whether or not to invest in FDs.
- Let you analyse and evaluate the profitability of the FD scheme.
- Enable you to decide upon the principle amount to be invested.
- Showcase the various rates of interest that could be applicable on your investment.
- Help you track the return on your initial investment and compare them with real results.