Now, when it comes to saving money and building wealth, everyone starts from somewhere, and these little steps help improve the overall financial situation over time. For example, around six months back, I came across the Fixed Deposit investment option, and when I checked that the Fixed Deposit Interest Rate offered a good return, I invested my money there. But before investing, I made sure to get a clear idea of what I’ll be reaping.

Knowing what you’ll reap out of your investment is very crucial. This is because it helps you plan everything accordingly. However, using an FD calculator is one of the best things you can do to check exactly what benefits you’ll get after the investment. I’ve been using the Bajaj Finserv app for my mobile and electricity bills. One of my colleagues only told me about the calculator facility in this app.

What is a Fixed Deposit?

Also known as an FD, it is a financial provision offered by the banks where one can deposit a lump sum amount and yield a higher interest rate than a savings account. Now, it is pertinent to mention here that Fixed Deposit Interest Rate is pre-decided for a fixed period. Starting from as short as seven days to as long as ten years, this investment is flexible as one can withdraw the money before the maturity date. So once you make the deposit with your bank, it starts earning interest depending on the duration of the deposit.

Therefore, to live the life one always desires, it is essential to start saving a small portion of your earnings.

What are its advantages?

• Assured returns

The topmost advantage of this wise investment is that it assures returns without any risk. Unlike other investments, such as mutual latestforyouth funds, bonds and stocks, where risk is generally high, FD offers a sense of security. 

• Easy Withdrawal

It can easily be broken before it matures. Therefore, when there is any emergency, you can withdraw it anytime but will be charged a minor penalty. However, it is highly advisable only to withdraw if there is an emergency, as it may affect the returns. 

• Flexible tenure

The tenure of this investment is flexible and depends on the deposit holder. Each financial institution has its own minimum tenure rules; however, the deposit holder can take the final decision. 

How to use a fixed deposit calculator?

Please note that I’m not promoting any brand or organization in this write-up. I’m just sharing my personal experience. Here is a step-by-step guide on how to use it – 

1. 1. Download the application on your smartphone.
   2. Enter your details and sign up
   3. Open it and tap on the top left icon with three lines.
   4. Choose the ‘Try our Calculators’ option.
   5. Go to Deposits Calculators
   6. Tap on Fixed Deposit Interest Calculator.
   7. Enter the details
   8. You are good to go