Are you planning to park your hard-earned funds in fixed deposits? Do you know how to calculate the interest rates for different types of fixed deposits? When it comes to making an investment in India, a fixed deposit is the most preferred option for most people as it offers guaranteed returns.
The amount of money that an investor will earn at the end of his/her FD tenure is determined based on the fixed deposit interest rates. Moreover, the FD interest rates are affected by various factors like the tenure of the deposit, interest computation frequency, type of FD scheme, and so on.
If you want to earn the highest return on FD, you must select the best type of fixed deposit for investment purposes. So, let us talk about the different types of fixed deposits.
Different Types Of Fixed Deposits
Here are the different types of fixed deposits offered by the various banks and NBFC’s.
- Regular Fixed Deposit
In regular FD, you park in your money for a fixed tenure, usually ranging from a period of 7 days to 10 years. Moreover, the interest rate for this scheme is predetermined.
- Tax-saving Fixed Deposit
In this FD scheme, your invested amount gets locked in for 5 years, and you cannot withdraw the money before the date of maturity. The principal amount that you earn on tax-saving fixed deposit qualifies for a tax exemption of Rs. 1.5 lakhs in a year under section 80C of the Income Tax Act.
- Senior Citizens Fixed Deposit
This scheme is only meant for senior Indian citizens who are above the age of 60. The best part about this scheme is that FD interest rates for senior citizens are typically higher than other fixed deposit schemes.
Calculate FD Interest Rates With A Fixed Deposit Calculator
You can make use of a fixed deposit calculator available online to calculate the FD maturity amount or the returns that you will earn on your investment. The entire procedure of calculating FD interest rates for senior citizens in India is simple and hassle-free.
To calculate the maturity amount, you need to enter details such as the term of the deposit, type of FD, the account opening date, the invested amount, and the interest rate. Once you feed in these details, the FD calculator will determine the maturity amount that you will earn at the end of your deposit’s tenure.
Otherwise, you can also utilize a compound interest calculator to calculate the FD interest rates and maturity amount by giving input like total principal amount, interest rate, and scheme tenure.
Although the interest rates offered by fixed deposits are higher than that of a savings account, FD’s come with a fixed tenure and the interest earned on the same is fully taxable. With the FD maturity calculator, you can easily calculate and determine the interest rates for fixed deposits (FD) in India.
Having gone through this article, make sure that you opt for the best type of fixed deposit as per your requirements to secure the highest return on FD.