This easily accessible online tool follows the same formula mentioned above, but the only difference is that you can simply provide the necessary inputs to get an instant result. Understanding how to use a fixed deposit calculator is crucial.
To carry out the online process, here is what you need to do:
- Step 1: Visit the online portal of your preferred bank and find the FD calculator online option.
- Step 2: Provide the amount you would like to deposit, including the rate of interest.
- Step 3: You also have to choose a specific duration (in months or years) for your fixed deposit and hit the ‘Calculate’ button. You will easily estimate the maturity amount using this tool and its in-built FD calculation formula.
For instance, if a person wants to check the interest per month for a specific deposited amount, the following steps should be followed:
- Since banks have two kinds of interest rates for normal account holders and senior citizens, it is required to select the right one before proceeding further.
- Select the preferred type of fixed deposit among quarterly payout, monthly payout, short-term deposit, etc.
- Choose the tenure and enter the amount the person would like to deposit.
Understanding the FD interest calculation formula will allow you to estimate your earnings manually.
Otherwise, based on all this information, the fixed deposit calculator will show the aggregate interest amount, including maturity value and interest per month. Also, note that the rate of interest differs according to the tenure you choose. Go through the interest table for this purpose to check which FD tenure will give you the maximum interest return.