5 Ways to Make the Best Use of FD Calculator

June 9, 2020

Using FD calculators enable investors to plan their investments easily, before investing. As opposed to using a manual and complicated FD calculation formula, you can use an online FD calculator, also known as the fixed deposit interest calculator, to be aware of your returns beforehand. All you are required to do is to enter the desired investment amount and tenure. With just one click, your FD maturity amount earned interest, and the payout amount is displayed on the screen. By using the FD Calculator, monthly interests, or any other periodic income can also be determined.

What is an FD Calculator

An FD calculator is a device specifically customized to approximate the maturity amount that an investor can wait at the end of a predetermined period for a specified deposit amount at the applicable rate of interest.

The calculator estimates this maturity amount by applying the compound interest applicable on a determined time basis.

To know the return value at maturity, do ensure that you consider requisite details such as FD scheme type, rate of interest offered by the bank, principal investment amount, and the approximate return value at maturity. Hence, if you want to know your investment value, you can use an FD calculator for ascertaining your preferred scheme.

Why use an FD Calculator

Some of the significant reasons for using an FD Calculator to calculate fixed deposit returns are given below.

  • Eliminating any scope of errors given that it is a mathematical tool that is adept to making accurate, cumbersome calculations
  • Saves you time and effort by doing multiple complex calculations promptly, and accurately. Also, all you have to do is, put the required inputs correctly
  • It’s a free calculating tool that can be used an innumerable number of times to compare the returns for varying types of the fixed deposit amount, rates and tenure

Four ways to make most of FD Calculator

To grasp the different ways in which an FD calculator is useful or that you can make use of, let’s deep-dive into the pointers enlisted below. These points entail how the FD calculator is a blessing in disguise. Read on to know more.

  1. Helps to evaluate your earnings well in advance

Using an FD calculator ensures that you are fully aware of your fixed deposit, as it helps estimate the value of your investment and enables you to plan ahead. Thus, you can approximate your fixed deposit returns accurately on using an FD calculator. All you need to do is to correctly input the investment amount, the interest rate, and the tenure time of your investment.

  1. Helps to eradicate the possibility of computational inaccuracies

Manually calculating the fixed deposit interest rate is a complicated approach when you can quickly get an accurate result using an FD calculator. Do note that inaccuracies while calculating these returns may cost you in the long run when your fixed deposit amount matures. This also may cause you to miss out on better earning. The formula added below helps to calculate the fixed deposit interest returns annually.

Compound interest = P [(1+i/100) t-1]


P= the principal investment value/amount

T= Teure time

i= interest rate

  1. Helps with free access for multiple uses

The best feature of an FD calculator is that it is free of cost, and an easy and quick to use financial tools. Every lender has an FD calculator integrated into their online portal for easy of convenience and accessibility. This way, you can quickly and efficiently compute your investment returns whenever you want and from anywhere without any hassle.

  1. Helps to plan your taxes with ease

When planning your taxes too, you can put the fixed deposit interest calculator to good use. This is because you can use it to know your returns, based on your chosen tenure period, accurately. This gives you valuable insight into the tax slab you fall under owing to your investment and other income. Likewise, you can use this information to route your taxable surplus into tax-saving investments. This method can save you a significant sum.

  1. Helps to choose the best FD scheme for you

The FD calculator can give you accurate values for the multiple fixed deposit investments in the market. You can assess the best option that offers you the highest returns by only entering an identical minimum amount for fixed deposit investments across the various fixed deposit interest rates offered by different issuers. Since an FD calculator provides results immediately and free of inaccuracies, you can see how even the most diminutive variation in the rates of interest can affect your overall gains. Moreover, you can also compare FDs with different tenures from the same issuer to see if you acquire higher earnings if you invest for longer. This way, you can also make an informed investment decision.

The Bottom Line

The use of an FD calculator is almost effortless with its ease of accessibility and convenience. With this calculator, you can save a lot of your time and effort, since you can instantly calculate fixed deposit returns without breaking a sweat.

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