Why You Need a Calculator to Calculate Your Returns On Investment in FD

Some of the best investment options out there are the ones that get the most flak. Case in point: the much maligned Fixed Deposit account.

We are all aware of how much one can earn by investments in FDs. If you’re looking for a smart way to check up on your investment savings, and checking why you should even have a Fixed Deposit account, here are a few reasons you should consider.

First off, familiarise yourself with the FD investment calculator, as this will probably become the most important tool you’ll be needing in your Fixed Deposit investment journey. Now, when considering an investment, the returns are your most important priority.

Keeping returns in mind, the minimal level of risk and the tenure, nothing makes a better option than Fixed Deposits, with banks and NBFCs alike. An FD calculator, as the name suggests, is used to calculate Fixed Deposit interest rates. For obvious reasons, that is one of the most important things you must be doing. What ‘obvious reasons,’ you ask?

A calculator will tell you exactly what you need to know, and more!

What an FD Account is

A Fixed Deposit account, as you probably already know, is an investment option. It is a savings account where money can be deposited for a defined and stated period of time.

This amount is then locked in. Upon maturity, a fixed rate of interest is compounded to the account holder. The interest can be awarded monthly, quarterly, half yearly, and yearly, depending upon the bank or NBFC and the account holder. It is also a relatively safer investment option, as opposed to shares or stocks.

Why You Should Calculate Your Returns

Besides the very evident fact that an FD calculator can sort out your finances, there are also other reasons you should use FD calculator. These include: a clear picture of your returns, the minimum amount you must invest to get the best and highest returns, the best FD that would benefit you personally, and other such data.

There are two kinds of FD calculators you can use.

?    On Interest Compounded Quarterly


This type of Fixed Deposit Calculator calculates the returns on the principal, when interest is paid to you on quarterly basis or compounded quarterly. In this case, the effective yield will be the total return on your FD. Just like with all other investment options, this too depends on two factors; the rate of interest at which you got your FD, and the frequency of interest returns. You’re most likely to come across banks and NBFCs that have their interest returns compounded quarterly to you. This means a calculator comes in handy when calculating the total maturity value of your FD.

?    The Deposit Calculator


The humble deposit calculator is more or less the same, except that, instead of just quarterly compounded interest, you can calculate your maturity value of the FD at monthly, half-yearly, and yearly as well.

The maturity value, or term deposit, can get more difficult to calculate if your returns are being calculated half yearly or monthly. However, this isn’t nearly as difficult as the quarterly compounded interest. This is why there is a separate calculator for quarterly compounded interest.


Pick the calculator that best suits what you’re looking for, and be fully aware of the returns you will get from your investment in FDs. An informed investor can make a smart and profitable decision from the many best investment options available to them.