When you invest in a fixed deposit or a term deposit, the first thing you want to know is the interest rate. You can get the term deposit interest rates on the official website of the issuer or through an in-person visit at the branch of the issuer. Similarly, you can find the post office FD rates on the official website of the Indian Postal service. In most cases, you will get a chart depicting two variables – tenor and interest rate. But, this chart doesn’t give the complete picture of how exactly the interest rate is calculated on the FD.
You can, of course, use the following mathematical formula of FD calculation:
- A is maturity amount
- P is the principal amount
- r is the rate of interest
- n is compounded interest frequency
- t is number of years (tenure)
So, if you want to invest Rs. 1.5 lakhs at 6% for 7 years with annual interest payout, it is manually calculated as:
You must have understood how complex and time-consuming this is. Just imagine how more cumbersome it will be to calculate periodic interest payouts!
An online FD calculator can do this for you automatically. It is the most convenient and quickest way to calculate term deposit interest rates. It is also a highly reliable tool to get clear visibility of interest calculation and FD savings growth during the entire tenor.
Also, you must note that
What are the advantages of an Online FD Calculator?
An online fixed deposit calculator gives the following benefits:
- Plan your FD investment as per your short-term and long-term financial goals.
- Get accurate figures concerning maturity date, maturity amount, and interest calculation.
- Compare returns across different FD schemes to make an informed investment decision.
- Fine-tune your FD investment strategy for maximization of returns based on the results shown by the fixed deposit calculator.
How to use an Online FD Calculator?
When using an online fixed deposit calculator, you have to enter three fields – deposit amount, tenor, and type of fixed deposit. Within seconds, it will make complex calculations and give your precise results.
You should use a free and reliable online FD calculator available on the official website of financial institutions such as Bajaj Finance. It helps you to calculate both cumulative and non-cumulative returns. The cumulative FD shows the total maturity amount inclusive of principal and total interest earned at the end of the tenor. The non-cumulative FD show monthly, quarterly, half-yearly, and yearly payouts calculated at the interest rate during that period. You can also use the post office fixed deposit calculator for calculating post office FD rates and earnings.
FD interest calculation is a hassle when you do it manually. Even if you manage to arrive at a number, it might not be accurate. Moreover, it does not tell you the exact maturity date, maturity amount, and interest payout. So, it is quite likely that you end up making the wrong investment decision. On the contrary, an FD calculator gives you the most precise and detailed information. You should use a free online calculator such as that of Bajaj Finance that shows both cumulative and non-cumulative FD calculations. An online FD calculator makes it easy for you to take control of your financial future.