Calculate the returns on a fixed deposit over a period.
Fixed deposit is a term used to describe a type of investment where the investor deposits a fixed sum of money into an account with the bank or Non-Banking Financial Companies **(NBFCs) for a set period of time, typically 7 days to 10 years. At the end of the agreed-upon period, the depositor can either withdraw the money with interest or renew the deposit for another fixed period.
The interest rate on a fixed deposit is generally higher than what is offered on a regular savings account. Generally, the interest rates ranges from 5% to 7.5%.
Fixed deposit is a perfect investment option for risk-averse investors.
These all make fixed deposits a great investment option for those looking for steady income over a period of time.
To invest in a fixed deposit, one needs to approach a bank or a non-banking financial company (NBFC).
There are different types of Fixed Deposits available in the market, which offer different benefits to the investor.
Standard Fixed Deposit
The Standard Fixed Deposit is a common type of Fixed Deposit, where the investor commits to depositing a fixed sum of money for a fixed period of time. The interest rate earned on the deposit is also fixed, and typically higher than that offered on a savings account.
Tax Saving Fixed Deposit
A Tax Saving Fixed Deposit is similar to a standard Fixed Deposit but offers additional tax benefits to the investor. The interest earned on the deposit is tax-free, which can be beneficial if the investor falls into a high tax bracket.
Senior Citizen Fixed Deposit
A Senior Citizen Fixed Deposit is designed for investors over the age of 60. The interest rate offered on these deposits is typically higher than that offered on standard or tax-saving deposits, as seniors are seen as a more reliable investment option.
Flexi Fixed Deposit
A Flexi Fixed Deposit allows the investor to withdraw money from the deposit at any time, without penalty. This can be useful if the investor needs access to their money in case of an emergency. However, it should be noted that the interest rate earned on a Flexi deposit is usually lower than that offered on other types of Fixed Deposits.
There are several things to consider before opening a fixed deposit account.
Fixed deposit calculator takes into account the interest rate that is being offered on the fixed deposit account and helps you to calculate how much money you will earn on your deposited amount. In addition, a fixed deposit calculator can also help you to determine how long it will take for you to reach your goal based on the interest rate and the deposited amount.
Formula used to calculate simple interest FD:
Principal Amount + (principal x rate of interest x time period/100)
When it comes to money, precision is key. This is why using a fixed deposit calculator is so important. It helps to determine how much money you will earn on your fixed deposit, as well as how much interest you will be paid on that deposit. This information is important in helping you to make the best financial decision for your needs.
When you are dealing with sums of money that you want to grow over time, you need to be as precise as possible about the interest rates and the amount of time you are committing your money to. With a fixed deposit calculator, you can ensure that your money would work as hard as possible.