Today, we are provided with a number of options when it comes to opening a bank account. It all depends upon personal preferences and requirements of an individual. Savings and current accounts prove to be beneficial for people who need to withdraw money at a regular basis. In the case of recurring accounts, there is a certain sum of money that is needed to be deposited by the account holder on a monthly basis. They all prove to be effective for the ones who deal in a lower sum of money.
Contrary to the ones above mentioned above, fixed deposit is one such option that allows a person to deposit for a much longer tenures. This time frame could be from 7 days to 10 years. The word ‘fixed’ denotes the period of maturity which remains constant. However, a person can ask for closing or terminating the account by paying a penalty that is usually 1% of the amount deposited. Some banks provide no penalty for the same. For the ones who rate safety higher than returns, fixed deposits prove to a helpful investment.
The rate of interest for fixed deposit holders can vary according to the prevalent market rates. Unlike before, the RBI (Reserve Bank of India) has no regulation over interest rates offered by private and commercial banks. However, the smaller and upcoming ones tend to raise the interest rate to attract more customers. With the competition prevailing in the banking sector it can be a tough job to select the right financial partner. The huge sum you deposit has to be rested in the hands of the one you trust. Along with safety and security, the benefits you get on the deposit should also be thought about. This is when an FD Interest calculatorcomes in handy for you.
Here are few android apps that can help you calculate Interest Rates
This online instrument helps you calculate the interest you earn on an FD account and the value of your investment on the date of maturity. It is done through compounding the interest on a monthly, quarterly, half-yearly or yearly basis. The FD Interest calculator assists you to know how much you earn from your investment. Through this, you can compare the various banks offering an FD service and select the one you prefer. With the growing prominence of fixed deposits in India, the task of choosing your right financial partner can now be carried out over the internet.
With all the banks offering their own interest rates, knowing the benefits on your fixed deposit has become easy.