The fixed deposit calculator helps you to calculate the return of the principal amount when interest is applied on it. The effective result is the actual return on your fixed deposit amount. The result depends on the interest rate and the frequency of compounding. In India, most of the compounding is done quarterly and hence fixed deposit calculator can be used to know the maturity value of your fixed deposit amount.
Fixed deposit accounts can be opened in nationalized or private banks or even postal departments. If you want to calculate the maturity value for your fixed deposit amount then fixed deposit calculator will help you to calculate with the compounding of interest rate monthly, quarterly, half yearly or yearly basis.
Banks usually offer a higher rate of interest on fixed deposits than savings or current accounts. The rate of interest is calculated at sporadic intervals like monthly, quarterly, half yearly or yearly. In India, the interest rate is usually calculated quarterly. Fixed deposit calculator thus is a tool which sanctions any investor to know the effective annual interest rates, total interest or the future value of the investment that an individual make in a fixed deposit. The fixed deposit calculator will also let you compare the different interest rates of the banks and will help you to select the best interest provider in the market.
If you want to open a fixed deposit account, then you could use a fixed deposit calculator to calculate to compute tax you need to pay each financial year after tax deductions and the advance tax installments, if any. Everyone knows that tax on fixed deposits should be paid every financial year.
There are a number of articles available on the internet which guides people on how to avoid tax deductions on fixed deposits. It is better to stay away from such articles. The important and vital point is fixed deposit interest is taxable as per the tax slab. There are fixed deposit calculators that will help you to calculate the taxable amount as well.
Summary: Fixed deposit accounts can be opened by anybody, you must remember that the rate of interest is taxable and there are fixed deposit calculators that can help you calculate that taxable amount along with the maturity amount that you would get from your fixed deposit account.