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Fixed deposit and fixed deposit calculator
Fixed deposits (FDs) are one of the safest and most popular financial instruments available in India. Whether its bank FDs or corporate FDs, the majority of risk averse investors, and even salaried individuals prefer investing in fixed deposits to other more lucrative investment avenues. The reason is simple - fixed deposits guarantee a fixed maturity amount and unlike shares, the value of the FD doesn’t depreciate. The amount you get on maturity is always more than your invested amount, which might not necessarily be the case with stock market investments. But what investors fail to realise is that in most cases, FD returns are less than inflation rate. This means that, in reality, FDs do not generate a profit; instead, you may experience a loss in real terms. This is why it's important to calculate FD returns using a fixed deposit calculator to evaluate and decide if FDs really aid in wealth creation.
How to Use the m.Stock FD Calculator?
The m.Stock FD calculator is user-friendly, which makes the calculation hassle-free. You can use m.Stock’s completely free fixed deposit calculator in 3 steps.
Step1 Enter the amount you want to invest in FD.
Step2 Enter the period of investment in years or months.
Step3 Enter the interest rate on your FD.
An Example to Understand FD Calculator
Let’s say you invested ₹1,00,000 at 6% per annum for 5 years in a bank FD. The future value of your FD after
5 years will be ₹1,33,823.
100000 x ( 1+ 0.06/12)12 x 5
While the formula might seem complicated, there is a simpler way to calculate your FD returns using m.Stock’s fixed deposit calculator.
₹ 1,00,000
₹ 1,33,823
FAQs on Fixed Deposit Calculator
You will just have to enter the investment amount, interest rate, and tenor and the calculator will display the maturity value of your FD.
Yes, the m.Stock FD calculator is completely free to use.
Corporate fixed deposits are deposits which are maintained (opened) with corporations or companies. They carry higher risk compared to bank FDs but also offer higher interest rates.
A Fixed Deposit (FD) calculator is a helpful tool that simplifies calculating the returns on your FD investment. By providing simple inputs such as the deposit amount, interest rate, and tenure, the calculator provides an accurate estimate of how much you will earn by the end of the deposit period. It eliminates the need for manual calculations (and the errors that they can cause), and gives instant results. Moreover, you can also choose options such as cumulative or non-cumulative FDs to identify the more beneficial option. This makes it easier for you to compare different FD plans and choose the one that aligns with your financial goals. Additionally, an FD calculator allows you to adjust variables to see how changes in tenure or interest rates can impact your overall earnings, making it a useful tool for planning your investments effectively.
An FD calculator is a valuable tool for future financial planning as it helps you estimate the returns on your fixed deposit investment over time. By putting in some basic details such as the principal amount, interest rate, and tenure, you can get a clear picture of how much you will earn at maturity. This information allows you to better align your savings with your financial goals, such as funding a future purchase or securing a stable income. Moreover, the FD calculator enables you to explore different scenarios by adjusting variables like tenure or amount, helping you make informed decisions about your financial planning strategy.
The minimum amount required to open a Fixed Deposit (FD) depends on the bank or financial institution offering the FD scheme. Generally, most banks allow you to open an FD with as little as ₹ 1,000, while some banks may have higher thresholds starting at ₹ 5,000 or more. It's important to check the specific bank’s requirements, as the minimum deposit may vary across institutions. Additionally, larger FD amounts typically come with more attractive interest rates, so it’s worth considering how much you can comfortably invest to maximise your returns over the selected tenure.
The tenure for a Fixed Deposit (FD) can vary widely depending on the bank or financial institution. Typically, the tenure for an FD ranges between 7 days (minimum) to up to 10 years or more (maximum). Some banks may offer flexible tenure options in between these timeframes. The interest rate on your FD will depend on the tenure you choose, with longer-term deposits often offering higher interest rates. However, it’s important to choose a tenure that aligns with your financial goals and liquidity needs, as premature withdrawal can lead to penalties.
Calculating the rate of interest on a Fixed Deposit (FD) is easy with an FD calculator like the one provided by m.Stock. To use it, you simply need to input the deposit amount, the tenure of the investment, and the interest rate offered by the bank. The calculator will then show you the interest you will earn over the chosen period, along with the maturity value of your deposit. Most banks also provide these calculators on their websites to help customers easily estimate their returns. Alternatively, you can manually calculate it using the FD interest formula:
Several factors can affect FD interest rates, including:
- Economic conditions: Interest rates often reflect inflation and central bank policies. When inflation is high, interest rates tend to rise.
- Tenure: Longer-term FDs usually offer higher interest rates than short-term deposits. But there may be exceptions here, which is why it is important to understand the FD rates being offered and choose a tenure that aligns with your financial goals.
- Deposit amount: Larger deposits may attract better interest rates depending on the financial institutions FD slabs.
- Bank policies: Interest rates vary by bank or the financial institution offering the FD, depending on their deposit strategies.
- Senior citizen rates: Many institutions offer higher interest rates to senior citizens. This is usually in the range of 0.25 - 0.5% higher.
These factors play a crucial role in determining the interest you’ll earn on your Fixed Deposit.
Senior citizens (people above the age of 60) are offered higher interest rates on Fixed Deposits (FDs) by most banks as an incentive. Typically, the additional interest rate ranges between 0.25% to 0.5% more than the regular rate provided to non-senior investors. This benefit allows senior citizens to earn more from their savings and ensure a stable income post-retirement. The enhanced rates are applicable to various FD schemes, including both short-term and long-term deposits. This makes FDs a popular investment option for retirees looking for safe and predictable returns. Some banks and NBFCs offer an even higher rate for Super Senior citizens (those above the age of 80). This may be 0.1% over the senior citizen rate.
Yes, an FD calculator is an effective tool for comparing fixed deposit schemes from different banks or financial institutions. By inputting variables such as the deposit amount, interest rate, and tenure, you can instantly see the potential returns for various FD options. This makes it easier to compare and select the best FD that offers the highest returns and aligns with your financial goals. You can also adjust the tenure and deposit amount to find the most suitable plan for your needs. Using an FD calculator helps in making informed investment decisions quickly and accurately.
Yes, tax-saving Fixed Deposits (FDs) offer benefits under Section 80C of the Income Tax Act. You can claim deductions of up to ₹ 1.5 lakh per financial year by investing in a tax-saving FD with a lock-in period of 5 years. However, while the principal amount qualifies for tax deduction, the interest earned on these FDs is taxable. Banks also deduct TDS (Tax Deducted at Source) if the interest earned exceeds ₹ 40,000 in a financial year for regular investors and ₹ 50,000 for senior citizens. To avoid getting TDS deducted, you can furnish Form 15G to the bank. If you are a senior citizen, then you will need to provide Form 15H.
If you need to withdraw your Fixed Deposit (FD) before its maturity date, it’s termed as a premature withdrawal. Most banks charge a penalty for this, which is usually a reduction in the interest rate. The reduced rate is based on the FD’s actual tenure up to the withdrawal date, not the original interest rate agreed upon. In some cases, a fee may also apply. Premature withdrawal allows you to access your funds when needed, but it’s important to consider the potential financial loss due to penalties.
The m.Stock FD calculator offers several advantages for investors:
- Quick and Accurate Results: You can calculate the exact returns on your fixed deposit within seconds by inputting the deposit amount, tenure, and interest rate. Not only do you save time as compared to manual calculations, but you can also be confident that there are no errors involved.
- Comparison: With so many banks and NBFCs offering a host of FDs, deciding which FD to invest in can be quite overwhelming. But, the m.Stock FD calculator allows you to compare different FD schemes offered by various banks, helping you find the most profitable option.
- User-friendly Interface: The calculator is easy to use and accessible on the m.Stock platform, making it convenient for users to plan their investments without hassle. All you need to do is provide some basic inputs (like amount, tenure, and interest rate) to get an immediate result.
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