Long-haul investors across the country are well-versed in RDs and FDs. Not only have recurring deposits and fixed deposits instilled a disciplined attitude towards investment within the investors, but they also have opened a gateway to wealth building like no other in the category. While in recurring deposits or RDs, you make regular installments, in fixed deposits or FDs, you are supposed to make a lump sum payment. Both methods of investments are great for wealth creation and are easy to fathom.
But before you start investing in either of the two, make sure that you start off the journey by using an RD calculator and a fixed deposit interest calculator. Read on to learn more about the working of both these investment instruments.
What is an RD Calculator?
Investments are generally considered feasible for salaried employees or people with a stable source of income when they have to make monthly payments on a regular basis. Not only does it prove to be a disciplined manner of investing your money, but it also allows you to meet your other financial obligations while making regular investments towards sustaining funds for future use.
Thus, RDs enable you to make monthly deposits. By using an RD calculator, you can calculate the total amount you would be making at the completion of the tenure by entering the monthly investment amount as well as the rate of interest. Using an RD calculator is very simple and easy.
How to Use an RD Calculator?
Step 1: Look up an RD calculator of your liking.
Step 2: Fill in the monthly investment amount, set the rate of interest and adjust the tenure to your preference.
Step 3: Click on view plans, and you can check the maturity value of your plan.
How Does an RD Calculator Help You?
RD calculator is a very useful tool and should be a part of your RD investment journey. Here’s how it can help you in making smart investment choices:
- It will allow you to experiment with numbers and select the plan of your preference to determine the best maturity value for you.
- Calculating RD values is a tedious task if not done right. Hence, using an RD calculator will aid you in calculations as well as save time with minimal effort.
- You might make calculation errors, but an RD calculator will not. Hence, you will get an accurate value for better future financial planning.
Whereas RDs appear to be a very enticing investment option, it is accompanied by alternatives such as FDs or fixed deposits. Let us look into a fixed deposit interest calculator and assist you in selecting the best investment strategy for yourself.
What is a Fixed Deposit Interest Calculator?
FDs are generally a preferred means of investment option for people who wish to invest a lump sum amount at once in place of making monthly investments. The lock-in period of the investment can start as less as 7 days to as long as 10 years. So, if you have surplus funds lying around and are willing to invest them by bearing a little risk, then FD is a good investment opportunity for you.
Thus, a fixed deposit interest calculator allows you to determine the rate of interest per annum and the maturity value of your FDs once the tenure comes to an end. A fixed deposit interest calculator has a user-friendly interface and is very easy to use.
How to Use a Fixed Deposit Interest Calculator?
Step 1: Look up a fixed deposit interest calculator of your liking.
Step 2: Fill in the principal amount of investment, rate of interest per annum and the time period for which you wish to make the investment.
Step 3: Click on view plans, and you can check the maturity amount of your FD.
How Does a Fixed Deposit Interest Calculator Help You?
Before you start investing in FDs, make sure to do the calculations and choose the right plan. Here’s how an FD interest calculator will help you in doing so:
- Given that you are making a lump sum payment in FDs, calculations for such an investment can get tricky. Thus, a fixed deposit interest calculator will assist you with hassle-free calculations.
- Since the calculations with such large numbers are time-consuming, a fixed deposit interest calculator will save you a good amount of time.
- More importantly, to get your hands on the best investment opportunity, you must compare FDs offered by various financial institutions. Thus, with the assistance of a fixed deposit interest calculator, you can compare the interest rates and maturity amounts offered by different financial institutions in the market from the comfort of your home.
Final Thoughts
Investing in either FDs or RDs is a smart wealth creation move. However, using the respective instruments to calculate the returns on the same will ensure a better and more suitable selection of plans for yourself. Happy investing!
