Fixed deposits are a great investment tool for the risk-averting traditional customer. They encourage a healthy saving habit too and provide a healthy liquidity option if any need for the same should arise. Before going for a fixed deposit account opening, one should pay attention to the rates offered by the bank on the specific fixed deposit scheme. Using the values of the rates and the amount to be kept in the fixed deposit, the fixed deposit calculator can help in finding out the return on investment after the intended period of lock-in has been completed.
As a tool that requires basic inputs of tenure, rate and investment amount, a fixed deposit calculator can provide advantages as follows –
The basic inputs in the fixed deposit calculator would be the following –
As mentioned above, the calculator needs inputs in order to calculate the return that will be made available to the customer while at maturity or when the fixed deposit tenure ends normally. It is worthwhile to note that the values indicated by the calculator hold good only if the fixed deposit is not terminated prematurely.
If a principal amount of AED 150,000 is kept in a fixed deposit account for a period of 2 years, at a rate of 1% interest compounded quarterly, the interest on the principal amount would be something to the tune of AED 3,027 and the total return would thus be AED 153,027.
Based on the rates offered by the bank and the frequency of interest calculation, the values could change.