A Fixed Deposit is a popular financial instrument that banks and financial institutions offer. It is a safe and reliable option that many people consider. Through high returns and flexible tenures, it helps you achieve your investment goals effectively. But to reap its perks fully, you need to make specific calculations.

In such times, a Fixed Deposit calculator helps. It is an online financial tool that lets you estimate specific values. This includes the maturity amount you can expect at the end of your chosen FD tenure at the applicable interest rate. Here is how it is beneficial to you:

1. Reduces risks

A Fixed Deposit is a reliable investment option. However, it holds specific risks if you start investing in it mindlessly. Hence, most investors opt for the FD calculator. It helps you estimate precisely how much you should invest in the FD. You can calculate the various aspects of the deposit beforehand. That way, you know what you are getting into.

2. No scope for errors

Manually calculating the returns often leads to errors and inaccurate values. This eventually prevents you from making the most of your FD. But with an FD calculator, there is no scope for such mistakes. It is computerised and hence, provides cent per cent accurate results.

3. Convenient

An FD calculator saves you from the hassle of making cumbersome calculations. For example, you want to finalise the maturity amounts for multiple tenures. If you do this manually, you will waste a lot of time. However, with the calculator, you can do so within seconds.

4. Accessible & free

Nowadays, almost every banking portal offers an FD calculator to users. It is free of charge and readily available. Moreover, you can also use this tool through your Banking app. Most banks provide this facility on their apps and websites.

5. Easy to use

You need not have extensive expertise to use an FD calculator. The steps are self-explanatory that way. They are as follows:

• Enter your deposit amount in the first field of the FD interest calculator
• Enter your interest rate in the second field
• Enter your preferred FD tenure duration
• Calculate to get the estimated maturity amount

This way, you can also check the total interest rate and know how much interest income you can accrue in your Bank Account.

6. Helps you compare

An FD calculator lets you compare different schemes. It assists you in making swift yet informed investment decisions. For example, you select an FD scheme with a specific interest rate. You want to know more about another scheme with a different interest rate. Now, you can calculate these schemes’ maturity amounts and compare them accordingly. As a result, you can choose one that matches your needs the best.