Saving up is not easy, but even more difficult is investing that money in the right avenues. Investing money is important not only for uncalled contingencies but also for a planned retirement. Also, investing helps so that your money does not lose its value over time by beating inflation.
Many options are available for one to invest and grow their corpus, but one such area is a fixed deposit(FD). Other avenues like stocks and mutual funds offer higher returns but have a fluctuation to them. To bypass these uncertain returns, most investors prefer to allocate an adequate portion of their portfolio of investments in fixed deposits.
Fixed deposits have a lower degree of risk associated with them while not being directly subject to the market variables. The first step when you plan to invest in a fixed deposit is finding a reliable scheme that helps in attaining your financial goals. Using an FD calculator, you can estimate the returns from those investments in a fixed deposit. An FD calculator furnishes you with precise details about the maturity amount so you can plan your investments. Also, the required fixed deposit interest rates can be deduced using such FD calculators.
There are many different types of FD calculators on the interweb. Although they may differ in the interface, look, and feel, they are more or less similar. Let us understand how we can use them effectively to arrive at a maturity value for your fixed deposit investment.
- The investor needs to provide the investment amount details.
- Next step is to specify the tenure for such FD
- After tenure, the system prompts for the FD interest rate
- After entering the above details, the system furnishes the amount that will be received by the investor at the given fixed deposit interest rates.
An FD calculator helps in comparing the different schemes provided by various market players. It is a quick and swift process that helps you in the determination of the returns from your investment. An FD calculator comes in handy to compare across the various financial institutions that offer this investment option. Opting to compute using an FD calculator helps you in selecting the best schemes from the available ones. At maturity, too, one can decide whether to reinvest by continuing with the same scheme or switch to a different one. Some key financial changes like the reverse repo rate, as brought about by the central bank of the country, i.e., RBI, too, affect the FD interest rates.
Using these calculators, one can compare the best FD rates in 2020 that help you in maximizing return on investment. Make sure you select the best fixed deposit investment offering the maximum returns depending on your risk appetite. Happy Investing!