Finance

6 advantages of using a Fixed Deposit Calculator

grace

September 11, 2022
3 min read

6 advantages of using a Fixed Deposit Calculator

In the realm of investment products, a Fixed Deposit is a popular one. It is safe, reliable, and provides a steady interest. It even allows flexible tenures, helping you effectively achieve your long- and short-term objectives.

But to enjoy the scheme’s benefits, you must consider specific calculations. Now, computing these values manually can be an arduous task. This is when a Fixed Deposit Calculator comes in handy. It is an online tool that assists investors in estimating their returns. The following are the advantages of using this tool:

Fewer errors

Manual calculation of any kind often leads to errors and inaccurate values. Such blunders further prevent you from optimising your FD returns. But the calculator leaves no room for mistakes. Since it is computerised, it gives you cent per cent accurate results. You need not worry about re-calculations because of errors on your end.

Lesser risks

A Fixed Deposit is a highly dependable investment option. However, it holds specific risks if you opt for it with inadequate knowledge. Hence, most first-time investors use the calculator. It enables them to estimate how much they should invest in the FD, among other influencing factors. In this manner, they are well-informed and dodge risks effectively.

Easy to use

Using the calculator is quite easy, as the steps are self-explanatory. They are as follows:

Step 1: Enter your Deposit amount in the first tab

Step 2: Enter your interest rate in the second tab

Step 3: Enter your preferred tenure duration for the scheme

Step 4: Click on “Calculate now” to get the estimated maturity amount

This way, you could also check the total rate on the FD interest Calculator. Get a rough idea of whether the FD is promising per your standards.

Convenient

An FD Calculator saves you from the hassle of cumbersome calculations. For example, you want to finalise the maturity amounts for multiple tenures. If you try doing this manually, you could waste time. But with the calculator, you will get these values within seconds. That way, you will not have to spend hours on any calculation.

Besides, the tool is readily available on almost every Banking app. With a few simple swipes on your smartphone, you can compute values anytime, anywhere.

Reliable assistance

The calculator assists you in comparing different Fixed Deposit schemes. It allows you to make swift yet informed investment decisions. You get reliable guidance for any query related to the plan. For example, you select a scheme with XYZ interest rate. But you want to compare it with another scheme with a different interest rate. In this case, calculate these schemes’ maturity amounts and compare them accordingly through the FD Calculator.