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A Comprehensive Guide to Using an FD Calculator

Updated: Apr 1

Table of Content:

  • Introduction

  • What is an FD Calculator?

  • Why Use an FD Calculator?

  • How does an FD Calculator Work?

  • Simple Interest FD

  • Compound Interest FD

  • How to Use the AssetPlus FD Calculator?

  • Benefits of Using the AssetPlus FD Calculator

  • How the AssetPlus FD Calculator Helps in Future Financial Planning

  • FAQs

  • Conclusion


FD Calculator
Introduction

Fixed Deposits (FDs) are a popular form of investment in India due to their safety, reliability and relatively high-interest rates. They offer a great way to grow your savings over a predetermined period of time. However, calculating the maturity amount and interest earned on an FD can be a complicated task. That's where a Fixed Deposit calculator comes in.

In this article, we'll be discussing the FD Calculator provided by AssetPlus. We will walk you through how it works, its benefits, and how you can utilize it to make informed investment decisions.

What is an FD Calculator?

An FD Calculator is an online tool that helps you determine the maturity amount and the interest you will earn on your FD. It simplifies complex calculations and provides accurate figures instantly. By using the AssetPlus FD Calculator, you can save a considerable amount of time that would otherwise be spent on these complex calculations.

Why Use an FD Calculator?

There are numerous benefits to using an FD Calculator. Here are a few:

  • Accuracy: The FD Calculators are highly accurate and reliable as they use advanced algorithms to calculate the interest earned on a fixed deposit, taking into account factors such as the deposit amount, tenure, and interest rate.

  • Convenience: With the FD Calculator, you can easily calculate the interest earned on your fixed deposit from the comfort of your home or office, without the need to visit a bank or financial institution.

  • Time-saving: FD Calculators are designed to provide quick results, enabling you to calculate the interest earned on your fixed deposit in a matter of seconds.

  • Comparison: The FD Calculator also allows you to compare the interest rates offered by different banks and financial institutions, helping you make an informed decision on where to invest your money.

  • Planning: The FD Calculator can help you plan your finances more effectively by providing a clear picture of the interest earned on your fixed deposit, enabling you to make better financial decisions.

How does an FD Calculator Work?

There are two main types of FDs that you can avail of – simple interest FD and compound interest FD. The AssetPlus FD Calculator can calculate for both types.

Simple Interest FD:

For a simple interest FD, the calculator uses the following formula:

M = P + (P x r x t/100)

Where:

  • M is the maturity amount

  • P is the principal amount that you deposit

  • r is the rate of interest per annum

  • t is the tenure in years

For example, if you deposit Rs. 1,00,000 for 5 years at 10% interest, the equation reads:

M= Rs. 1,00,000 + (1,00,000 x 10 x 5/100)

M= Rs. 1,50,000


Compound Interest FD:

For compound interest FD, the FD return calculator uses the following formula:

M= P + P {(1 + i/100) t – 1}

Where:

  • M is the maturity amount

  • P is the principal amount

  • i is the rate of interest per period

  • t is the tenure

For example, if you deposit Rs. 1,00,000 for 5 years at 10% interest, the compound interest FD will accrue:

M= Rs. 1,00,000 {(1 + 10/100) 5-1}

M= Rs. 1,61,051

How to Use the AssetPlus FD Calculator?

Using the AssetPlus FD Calculator is a simple and straightforward process. Follow these steps:

  • Enter your deposit amount: This is the amount of money that you are planning to invest in your FD.

  • Choose your customer type: Select whether you are a general citizen or a senior citizen.

  • Select your FD type: Choose whether you want a simple interest FD or a compound interest FD.

  • Enter the tenure: This is the period for which you want to keep your money in the FD.

  • Select the interest payout frequency: Choose when you want to receive your interest – at maturity, monthly, quarterly, half-yearly, or annually.

  • Click ‘Calculate’: The calculator will instantly show you the maturity amount and the total interest earned.

Benefits of Using the AssetPlus FD Calculator

Here are some of the advantages of using the AssetPlus FD Calculator:


  • Instant Results: You can get accurate and instant results about your FD maturity amount and total interest earned.

  • Ease of Comparison: You can easily compare the interest rates and maturity amounts of different FD schemes and choose the best one for yourself.

  • Better Financial Planning: Knowing your FD maturity amount in advance can help you plan your finances effectively.

  • Savings on Time and Effort: The FD Calculator does all the complex calculations for you, saving you a lot of time and effort.


How the AssetPlus FD Calculator Helps in Future Financial Planning

Once you understand how much your FD will fetch you after the tenure ends, you can make more informed decisions about your future financial planning. You can either choose to reinvest the amount or withdraw it based on your financial goals and requirements.


FAQs

Is the AssetPlus FD Calculator free to use?

Yes, you can use the AssetPlus FD Calculator free of cost to calculate your FD maturity amount and total interest earned.

How much time does it take to use the AssetPlus FD Calculator?

Can we get monthly interest on FD using the AssetPlus FD Calculator?

What is the 'maturity amount' in FD?

The maturity amount of your FD is the total amount you will receive at the end of your FD tenure. It is a sum of your principal amount invested along with the pre-decided returns earned over the chosen tenure.


Conclusion

Using an FD Calculator like the one provided by AssetPlus is a best online platform for mutual fund distributor simplifies the process of calculating the maturity amount and interest earned on your FD. It not only saves you time but also helps you plan your investments wisely.

The AssetPlus FD Calculator provides accurate and reliable calculations, making it a valuable tool for anyone looking to invest in an FD. It aids in effective financial planning and decision-making, ensuring that you can maximize your returns and achieve your financial goals. So, why wait? Start using the AssetPlus FD Calculator today and take a step towards smart and informed investing!


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