FD Calculator

Some of the key reasons you should consider using an FD calculator include:

• It avoids errors that can happen while doing manual calculations.
• You can save yourself a lot of time and effort.
• There are fewer possibilities of miscalculations. Therefore, you get an accurate estimate according to the details provided by you.
• It enables you to compare different options available hassle-free.

Benefits Of Using an FD Calculator

Using an FD Calculator will not only help you estimate accurate information but will also help you in many other ways. Some of them are mentioned below.

• Simple Process:

Sometimes, the process of calculating the maturity amount for your fixed deposits can get tedious. However, an FD calculator can make the process simple and easy for you. You just need to provide some information and, within a few seconds, the results will be displayed.

• Time-Saving:

While calculating the maturity amount for mutual funds manually, you may have to spend a lot of precious time. However, using an online FD calculator will simplify the process and save you a lot of time.

• Easy Comparison:

There are a lot of financial institutions providing mutual funds to their customers. The FD calculator will help you calculate the maturity amount and interest rate of different institutions quickly. Therefore, you can make an informed decision by comparing all the options available.

How Is The FD Interest Rate Calculated?

There are two ways to calculate the FD interest rate: simple interest FD and compound interest FD. Both of them use different formulas to give results. Check them out below.

Simple Interest FD	Compound Interest FD
M = P + (P x R x T / 100)	M = P + P {( 1 + i/100) t - 1}
Variables: P= Deposited principle amount R= Rate of interest per annum T= Tenure in years	Variables: P= Principle amount I= Rate of interest per period T= Tenure

Factors Affecting Fixed Deposits Interest Rates

Listed below are factors that affect the interest rate charged on fixed deposits.

• Tenure:

FD interests vary depending on the tenure chosen at the beginning of the investment. Many banks and financial institutions also provide high FD interest rates on special durations.

• Investment Amount:

Another key factor is the investment amount. The total amount that you are investing in a fixed deposit also impacts the interest rate.

• Auto-Renewals:

Renewing your policy on time can help you earn higher interest rates on fixed deposits. Therefore, keeping track of renewal dates is also important.

• Age:

The age of an investor is the major factor that affects the FD interest rate. The interest rate for senior citizens is comparatively higher than for young citizens of the country.

• Economic Conditions:

The prevailing economic conditions and changes in the monetary and fiscal policies have a huge impact on the FD interest rates.

Current Rate of Interests on FDs

In India, the highest FD rate is 7.90%, and an additional 0.50% value is given to senior citizens. Generally, the interest rate on FDs is unique according to the policy tenure and amount invested by an individual. Moreover, it varies for different institutions.

Therefore, you can use the FD calculator to calculate the FD rates for different banks, which will help you make a wise investment decision.

What Makes Life Insurance Better Than Fixed Deposits?

Fixed deposits undoubtedly are a great investment option. However, the benefits of life insurance are much more astounding. While investing your money in fixed deposits, you can save money for the future while earning returns. However, a life insurance policy provides you cover against any kind of mishappening along with an option for saving funds.

Life insurance is a contract between an insurance company and a policyholder in which the insurer promises to provide a specific sum of money in case the life assured dies or the policy matures.

Listed below are some of the reasons that justify why you should buy life insurance over a fixed deposit.

• A life insurance will provide you with dual benefits. This means you can secure your life along with creating future wealth.
• With a life insurance policy, you can safeguard yourself and your family members financially against any unfortunate event that can occur in the future.
• Unlike fixed deposits, life insurance provides long-term benefits. You can even live stress-free with this plan for a lifetime.
• A life insurance product such as pension plans, term insurance plans, and more caters to the unique requirements of individuals. Therefore, you can choose one that suits your needs.
• Under sections 80C and 80D of the Income Tax Act, 1961, you can avail of tax benefits on your life insurance plan.