Investment Products Fixed Deposit Versus Stocks
Before understanding the importance and the use of fixed deposit calculator it is essential to know the meaning of fixed deposit.Well, a fixed deposit is an investment product. It is one of the most popular options available in the financial market today; especially for people who would like their money to be safe and at the same time seek guaranteed protection from the vagaries of financial markets.In simple terms, a certain amount of money is placed with the bank, as deposit. This deposit earns interest depending upon the prevailing rates.
The accrued interest along with the principle amount is then returned to the account holder at the end of the term which can range from fifteen days to ten years. Interest is calculated on monthly, quarterly, half-yearly or on annual basis and then added to the principle amount.Typically, the funds cannot be withdrawn before the end of the term.Here are some of the advantages of fixed deposits.1. Extremely safe.2. Protection against market vagaries.3. Loans can be availed on such deposits (up to 75%).A fixed deposit calculator is an application to calculate the maturity amount. Many websites offer this software.
The user simply inputs various parameters such as amount, deposit period to get the net amount payable to them after the end of the term.They are Bombay Stock Exchange or BSE and National Stock Exchange or NSE. It is advisable to screen the stocks before buying. Stock screeners are basically research tools, some of which are free, while some come with a big price tag. BSE stock screener helps in identifying the weaknesses and the strong points of a company.Once you have understood the risk factor involved and screened the stock, the next step is to select a broker who will help you in buying or selling as the case maybe.You will also need to learn the technical terms of stock trading, such as market order, stop loss, margins and block purchase. They may sound difficult to interpret but over a period of time and with the help of your broker, these terms may not overwhelm you.Finally, you will need an account with a bank to trade in stocks.