How To Use The Fixed Deposit Calculator To Plan Your Investments
A fixed deposit is one of the most popular investments available for people today. This investment gives fixed returns, is extremely flexible and can help augment the earnings that a person makes from...
A fixed deposit is one of the most popular investments available for people today. This investment gives fixed returns, is extremely flexible and can help augment the earnings that a person makes from his savings account. A fixed deposit also gives tax benefits if you invest in the 5-year tax saving fixed deposit. Since the returns on this are fixed and transparent, it becomes very easy to invest funds and find out the returns. The funds in a fixed deposit are blocked till the time the fixed deposit matures. This means that you can withdraw funds once the deposit matures. There are rules for premature withdrawals in terms of penalty etc.
It is possible to invest in fixed deposits to meet your short term goals. This is possible using a fixed deposit calculator. With digital banking, many lenders have all information up on their website. Along with product information, they also have a tool called a fixed deposit calculator. This calculator calculates the maturity amount of the fixed deposit for a given tenure and principal amount. Generally, FD calculator has the rate of interest input in the calculator itself. However, some calculators allow you to input the rate of interest on a fixed deposit.
A fixed deposit calculator shows you the maturity value of your principal amount for different deposit tenures. This is perfect to help you plan your investments. One of the best ways to plan your investments is to use a goal based approach. This means you need to fix a different investment strategy for every investment goal. If you have a longer term goal, then the investments chosen and the strategy must be completely different. When it comes to short term goals, principal certainty is the most important thing. To ensure this, you can invest in a secure investment like a fixed deposit.
Once you decide the amount you need for your goal, you can use the fixed deposit calculator to find out how much you need to invest to reach that goal. For example, if your goal is to raise Rs. 50,000 for purchasing a consumer durable item, you can back calculate how much you need to put in a fixed deposit and the tenure. This can help you plan your investments. Since most banks and the post office clearly display the interest rates for these deposits on their websites, you can easily check and open your fixed deposit at that particular bank. Using an FD calculator is extremely helpful in figuring out how much you need to invest to reach your goals. Once you know how much to invest, you can open your fixed deposit and start saving.
A fixed deposit calculator is a free tool available on bank websites. If you’re making short term investment plans, you must use this calculator.
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ABOUT THE AUTHOR
Arjit Chalmela is a finance student who loves to write in his free time. he has spent a considerable amount of time researching about FD calculator. Through his work, he has explained how to use the calculator to plan investments