Tuesday, October 1, 2013

Know your compound interest on fixed deposit through a fixed deposit calculator

The fixed deposit calculator facilitates you to know the worth of your deposited amount when it gets matured. Normally the interest on fixed deposits is being paid on quarterly, half-yearly or yearly compounding.  The genuine return of the deposited amount is the effective yield, and it depends on the frequency of compounding and the interest rate.

The condition of compounding arises when interest on the fixed deposit is added to the sum actually deposited so that from that instant on, the interest that has been included also earns interest. This adding up of interest to the deposited amount is called compounding. This interest can be calculated by making use of a fixed deposit calculator. 

Summary: Most of the banks and other financial institutions feature the fixed deposit calculator on their respective websites to ease the calculation of the compounding interest and the worth of the sum deposited in the fixed deposit category.   

No comments:

Post a Comment