Every investor looks for the best return on investment when choosing their investment options. One way of investing one’s hard-earned money is by depositing it in a Fixed Deposit (FD). An FD is a safe and secure investment option offered by the banking sector as well as Non-Banking Financial Companies (NBFCs) in India. The broad appeal and popularity of FDs lie in their assured returns and low risk. Many investors prefer using an FD calculator monthly interest to calculate the returns on their invested amount and to plan their investment better.
An FD calculator monthly interest is a tool available online that assists you in calculating the interest and maturity amount for the amount deposited. It helps you to determine the interest gains on your deposit monthly, quarterly, half-yearly, or annually based on the term chosen by you.
To calculate the monthly interest with the FD calculator, follow the steps given below:
- Visit a trustworthy financial platform that offers an FD calculator, usually bank websites or financial portals.
- Enter the principal amount of your FD.
- Input the interest rate offered.
- Enter the tenure of the FD.
- Set the frequency of how regularly you want your interest to be paid (monthly, quarterly, half-yearly, or annually).
- Click on ‘Calculate’.
Once you have entered all the information accurately, the FD calculator will promptly provide you with the final maturity amount at the end of the tenure and the monthly interest you will earn.
Suppose you want to invest INR 1,00,000 in a fixed deposit for three years with an annual interest rate of 6.5%. If interest is compounded quarterly, at the end of three years, using the FD calculator, the maturity amount will be approximately INR 1,21,286, and the total interest earned would be approximately INR 21,286.
While FD is a favored investment, another investment option you might want to consider is the National Pension Scheme (NPS scheme). The NPS scheme is a government-initiated pension cum investment scheme that focuses on the systematic saving for retirement. However, before investing in any scheme, whether it’s an FD or NPS scheme, you should know its pros and cons, and return on investment, which you can usually compare with a suitable calculator tool, similar to the FD calculator monthly interest.
Investing in the Indian financial market, like any other market, has its own risks and benefits. Hence, it is necessary to make informed decisions based on comprehensive research, consultation with financial advisors, or using financial tools and calculators to ascertain returns and understand the market trend. Whether you choose FD or the NPS scheme, the investor must gauge all the pros and cons before taking a plunge into the investment world.
Disclaimer:
This article is intended to provide details about calculating the monthly interest with the FD calculator. It does not, in any way, suggest or recommend investing in any specific investment tool, including FD. Every investor must make independent judgments before investing and consult with a professional advisor if necessary.
Summary:
Understanding how to calculate monthly interest with the FD calculator, an online tool designed to calculate the monthly, quarterly, half-yearly, or annual return from fixed deposits, helps in better financial planning. By entering details like the principal amount, interest rate, and the tenure of the deposit, the FD calculator gives the final maturity amount and the interest that will be earned. Another valuable investment option is the NPS scheme directed towards systematic retirement saving. However, before investing in any financial instrument, an investor needs to consider the benefits, drawbacks, and consult with professional advisors as necessary. The FD calculator monthly interest or any calculator for such schemes provides an outlook on returns but does not recommend any investment. Further, understanding the market trend and comprehensive research are pre-requisites to any financial investment.