Fixed Deposits are known as a risk-free investment method for people who have money and no idea about investment. It is quoted as ‘risk-free’ because of the guaranteed returns in this deposit.Read more
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The fixed deposits can be treated as a regular source of investment. With the help of fixed deposits, an individual can earn an interest amount for their already existing money.
The Fixed Deposit Calculator is provided by every bank and insurance corporation on the official website. It is also commonly known as the Monthly Payout FD Calculator. Using such a calculator give the exact interest amount that a person can get paid monthly for their fixed deposit.
This interest is a quick method for calculating the interest charge on a loan amount. Simple interest is calculated by multiplying the principal amount's daily interest rate and the number of days between payments.
This interest is applied mostly on short-term loans or short-term fixed deposits.
The formula for simple interest is,
A = P (1+rt)
Compound Interest is applied for long-term loans or fixed deposits. This interest differs a lot from simple interest. In this interest, the calculation is done based on both the initial principal amount and the accumulated interest from previous periods. Compound interest is also known as ‘Interest on Interest’.
When a bank offers compound interest for a particular fixed deposit amount, the customer has a huge profit in it. With the help of compound interest, the sum will grow faster than simple interest.
The formula for compound interest is,
A = P (1+r/n)^nt
Fixed Deposits can be chosen by individuals who had a sudden inheritance or even some spare money to invest in getting a payout and earning interest. Many customers who will deposit an amount as a Fixed Deposit may not have a clear idea of the interest rates provided and other details.
The Monthly Payout FD Calculator can help a customer understand how much amount they can get as an interest for a particular fixed deposit amount. Customers can even choose the time for which they can select for depositing their amount.
The Monthly Payout FD Calculator is available on every financial corporation and bank’s official websites. By providing some information, customers can decide on which bank offers the best interest rate. The calculator is free to use and available online, so the customer can easily compare various interest rates provided by multiple banks.
Listed below are some pointers to be considered while using a Monthly Payout FD Calculator online:
Customers must know how much they have to invest in fixed deposits.
The rate of Interest provided by each bank differs a lot. Customers have to choose the bank which provides a higher interest rate for the amount invested in Fixed Deposit.
Tenure of deposit can be chosen between 7 days and 10 years for a fixed deposit. Customers can choose any tenure period depending upon their convenience.
Compound Interest tenure is calculated based on the maturity amount that is to be earned at the end of Fixed Deposit commencement. The customer's tenure period can be chosen while investing in fixed deposits as – monthly, quarterly, half-yearly and yearly.
Some of the advantages of using the Monthly Payout FD Calculator are listed below:
Customers can use the Monthly Payout FD Calculator completely free of cost. Since it is free of cost, customers can use it again and again to compare various available Interest rates provided among banks and financial institutions.
Customers can use this calculator online, and they can use this calculator in the comfort of their house.
Customers can get detailed information on the investment procedure before investing an amount as Fixed Deposit with a particular bank or financial institution.
The Monthly Payout Fixed Deposit Calculator provide details of every amount entered while calculating. Thus, customers can compare various available options and choose the best bank or financial institution as per the customer's convenience.
Using the fixed deposit calculator can be used differently from one bank to another. However, there are some common steps involved in using a Monthly Payout FD Calculator. Steps to follow for using a Monthly Payout FD Calculator are:
An individual can even invest a small amount as FD. The minimum limit provided by almost every bank is Rs 1000. The maximum amount for depositing has no limit. Fixed deposits are helpful for both individuals and corporations for investing their money.
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