Investing proves to be advantageous in numerous ways. It secures your money and keeps it working. It lets you work towards different financial goals systematically. Most investment options also help you save on taxation. So, you should actively invest. Today, there are several investment options to explore. A Fixed Deposit or FD is the most popular option investors opt for.

You can invest in FD with any bank or non-banking financial institution. Preferably, you should invest with a bank offering the highest FD interest rates. This way, you earn decent investment returns. You should calculate potential returns before investing. The FD calculator is an online tool that helps you here. Let us understand the FD calculator and its usefulness better.

About FD calculator

FD calculator is an online tool that handles investment calculations for you. You only need to enter your investment’s key variables, and you are good to go. Within minutes, the calculator shows the estimated investment maturity value. You can access the FD calculator on any bank website or Banking app. You can utilise the calculator numerous times and free of charge.

Reasons to use an FD calculator

• Allows research

As mentioned, you should consider the FD rates when comparing the banks and invest with the bank offering the highest interest rate. FD calculator lets you make wise investment decisions. You can enter different interest rates and determine which one fetches you the best returns.

• Determine investment variables

Determining the correct investment variables is necessary. It ensures that you are on track with your investments. You should enter your choice of investment variables in the calculator to check if they earn you desired returns. If your investment variables offer you better returns, then that is the best. However, you should re-consider your investment variables if they cannot yield desired returns.

• Learn about the investment maturity value

FD calculator online determines your investment’s maturity value. You also get a clear breakage of the investment maturity value as principal sum and interest earnings. A graphic representation often accompanies the numbered results to facilitate better understanding.  Moreover, the results are precise. Since the FD calculator is an online tool, there is no scope for human error.

Using the FD calculator is also time-saving. You need not spend endless hours doing manual calculations.

• Understand taxation

FD interest rates are subject to taxation. Your interest earnings get added to your taxable income. You get taxed according to the tax slab rate you classify for. You should use the Fixed Deposit calculator to determine your interest earnings. Add the estimated interest earnings to your taxable income. This helps you know which tax slab you classify for and can accordingly plan your investment and taxation.