Banks are a safe investment option as they guarantee fund access and security. You rely on their services and open a Bank Account to enjoy its benefits and features. It is also a popular financial product offered by all banking institutions in India with varying interest rates. Deposit schemes also offer higher interest for capital appreciation.

FDs are reliable for growing and preserving savings. A FD calculator uses the formula A = P(1+r/n)^n x t, where A is the maturity amount, P refers to the principal amount, R is the interest rate, N is the compounded interest frequency, and T is the tenure.

What are its functions?

When you open the deposit calculator to compute the returns on your investment, you need to fill in the customer type, deposit type, amount, and tenure to reflect the interest and maturity amount. You save time in manual calculations and determine the investment returns instantly.

What is the minimum investment amount?

The minimum amount you can invest in the Fixed and Recurring Deposit varies between banks. You can start with Rs. 500 and deposit it throughout the tenure. There is no limit on the maximum deposit amount. The only difference lies between the mode of investment. FDs involve lump sum, whereas RDs involve small and regular investments throughout the tenure.

How to calculate?

Using the FD calculator online to calculate the interest earnings and maturity amount is wise. This tool is accurate, quick, customisable, and easily accessible anytime. Knowing how to deal with numbers is beneficial, especially in financial planning. It allows you to get a higher payoff at the end of the investment term.

How to increase returns?

To maximise the returns on your Fixed Deposits, you must know the factors associated with the final maturity amount. A higher deposit amount means higher interest. The longer the tenure, the higher the interest. Also, a higher interest rate yields a greater interest amount. Cumulative Deposits give better interest.

The FD interest calculator compounds interest monthly, quarterly, half-yearly, and annually. You can invest in Deposit  Accounts and get guaranteed returns since they are a traditional and reliable investment method.

What are the benefits?

This calculator is a time-saving instrument that performs all calculations within seconds. There are no chances of errors if you input every variable correctly. It is available free of cost and allows multiple variable adjustments. Use it at any time and from anywhere without any hassles. You can also use the tool to compare the performances of other investment schemes on the Banking app.

Final thoughts

The Deposit Account tenure starts from six months to 10 years. You can select it in multiples of three months after the first six months, i.e., nine months, 12 months, 15 months, etc. Ensure you activate the auto-debit facility from your Savings Account to avoid late payments and penalties.