Indian Bank FD Calculator

Indian Bank Fixed Deposit Features

• Indian Fixed Deposit offers investors high interest rates at minimum risk. Following are some of the key features of an Indian Bank fixed deposit account:
• Guaranteed Returns: Indian Bank fixed deposit schemes offer guaranteed income at a fixed interest rate.
• Tenure: The fixed deposits tenure ranges from 7 days to ten years.
• Minimum Amount: The minimum amount to open an Indian Bank FD account is INR 100.
• Maximum Amount: There is no limit on the maximum amount of investment in Indian Bank FD.
• Indian Bank FD rates: The Indian Bank fixed deposit interest rate ranges between 2.80% to 5.75% p.a.
• Senior Citizens FD Rate: Indian Bank offers preferential interest rates to its senior citizen depositors. The Indian FD rates range between 3.30% to 6.25%.
• Safety: The Deposit Insurance Scheme insures the Indian Bank deposits up to INR 5,00,000.
• Loan against FD: Indian Bank provides its depositors with a facility to avail a loan against their FDs up to 90% of the deposit amount. It allows investors to meet their financial gaps and liquidity requirements without withdrawing or breaking their Indian Bank FD deposit.
• Nomination Facility: Indian Bank depositors can nominate beneficiaries while opening the FD account.
• Auto-Renewal: Indian Bank offers an auto-renewal facility of the fixed deposit account.

What is an Indian Bank FD Calculator?

Indian Bank FD Calculator is a simple online tool that helps in estimating the returns from an FD investment. The FD calculator only requires simple inputs like target amount, investment amount, interest rate, and tenure. The output the Indian Bank FD calculator provides aids in better financial planning.
However, one must understand that the Indian Bank FD Calculator only provides an estimation and doesn’t guarantee any returns. The actual return might vary, and the exact maturity amount will be known only after one invested in Indian Bank FD.

How to use Indian Bank FD Calculator?

While investing, it is advisable to check the potential return from an investment. This helps in better investment planning. In other words, one can plan their goals in a better way if the returns are in terms of wealth accumulated rather than in terms of percentage. There are two ways one can estimate the returns from FD investment using Scripbox Indian Bank FD Calculator: invest amount approach and target amount approach.

Investment Amount Approach

Following are steps that you can follow to use the Indian Bank FD Calculator using the Investment Amount Approach:

• Firstly, enter the investment amount that you intend to invest in the Indian Bank FD scheme.
• Now, with the slider, adjust the desired tenure of the investment. For Indian Bank FD, the tenure usually varies from one to five years.
• Then, use the slider to select the interest rate on the Indian Bank FD.
• Next, select the compounding period for the fixed deposit investment. One can choose any of the following options: monthly, quarterly, half-yearly and yearly options. Compounding frequency is the number of times the interest will be compounded. The interest amount depends on frequency. Hence it has to be selected carefully.
• Lastly, select the suitable option under the senior citizen section.

After all the inputs are entered, the Indian Bank FD calculator automatically shows the interest and maturity amount. The Indian Bank FD calculator shows a tabular format of the interest earned each year along with the opening and closing balance. Moreover, the Indian Bank FD calculator gives a graphical representation of the initial investment and maturity amount.

Target Amount Approach

While the investment amount approach requires you to enter the investment amount, the target amount approach estimates the investment amount based on the amount you expect from the Indian Bank FD investment. Following are the steps that you need to follow to use the Indian Bank FD Calculator using the Target Amount Approach:

• Firstly, select how you want to receive the interest from Indian Bank FD, as a regular income or in a lump sum.
• Secondly, enter the target amount you want to receive from the Indian Bank FD investment.
• Lastly, enter the during, interest rate and compounding frequency that the Indian Bank FD offers. Also, select the suitable option under the senior citizen section.

The Indian Bank FD calculator gives the investment amount needed to achieve the target and estimates the interest you might earn. Moreover, the Indian Bank FD Calculator shows a tabular representation of opening balance, interest earned and closing balance for each year.

Benefits of using Indian Bank FD Calculator

1. Using Indian Bank FD interest rate calculator one can estimate the returns from a FD investment and make well informed investment decisions. As a result, it leads to achieving financial goals faster. 
2. The interest amount from Indian Bank FD investment is affected by tenure, interest rate, compounding frequency, and investment amount. One can use the Indian Bank FD calculator to see which factor affects the interest rate the most by adjusting them and then can compare the results.
3. There are multiple FD schemes in the market that banks and NBFCs offer. Using the Indian Bank FD calculator, one can compare the maturity amount of different banks and NBFCs.
4. Investors can compare the Indian Bank FD Calculator results with the returns from other investments and analyse which investment gives higher returns. For example, an investor who wants to compare the Indian Bank FD investment results with PPF can use the Scripbox PPF Calculator and Indian Bank FD Calculator.
5. The Scripbox Indian Bank FD calculator has two approaches, namely, the investment and target amount approach. Investors who have an idea about the amount they wish to invest can use the investment amount approach. While investors who know have a target amount that they wish to accumulate can use the target amount approach on the Indian Bank FD calculator.
6. The Indian Bank FD calculator provides results in graphical and tabular format. These representations clearly show the opening balance, interest earned, and closing balance for each year during the entire Indian Bank FD investment tenure. Hence investors can know how much balance is left in their Indian Bank FD after every interest payout.

How is Indian Bank FD Interest Calculated?

The amount of interest one might receive from the Indian Bank FD investment depends on a number of factors such as investment amount, tenure of the FD, compounding frequency, and the rate of interest. The interest can be estimated using two methods, namely, simple interest and compound interest. Let us understand both these methods with the help of an example.

Simple Interest on Fixed Deposit

Simple interest on an FD is the interest earned for a predetermined period at a fixed interest rate. Also, the interest earned will be the same throughout the investment tenure.
Formula
Simple Interest = (P * R * T)/ 100
P- Investment amount, R- Interest rate of Indian Bank FD (%), T- Tenure of the Indian Bank FD
Example
Ms Rithvika wants to invest INR 30,000 for 5 years at an interest rate of 6% per annum.
For Ms Rithvika, the principal amount (P) is INR 30,000, rate of interest (R) is 6%, and tenure (T) is 5 years.
Simple Interest = (INR 30,000 * 6 * 5 years)/ 100 = INR 9,000
Maturity Value = Investment amount + Simple Interest earned during the tenure
Maturity Value = INR 30,000 + INR 9,000
Maturity Value = INR 39,000

Compound Interest on Fixed Deposit

Compound interest is the interest on the investment amount plus the interest accumulated so far. The interest earned will be more, if the tenure and number of compounding periods in a year will be higher. Whereas, a high frequency of interest payout will reduce the interest amount. Indian Bank FD interest is compounded every quarter.
Formula
A = P (1+r/n) ^ (n * t)
A = Maturity Amount, P = Investment amount, r = Interest rate (in decimals), n = number of compounding periods in a year, t = tenure in years
Example
Ms Rithvika wants to invest INR 30,000 for five years at an interest rate of 6% per annum, compounded half-yearly.
For Rithvika, the principal amount (P) is INR 30,000, rate of interest (r) is 6%, tenure (t) is five years, and the number of compounding periods is 2 (n)
Maturity Amount = 30,000 (1+0.06/2) ^ (2*5)
A (maturity amount) = INR 40,317.49
Interest income = INR 40,317.49 – INR 30,000 = INR 10,317.49

Frequently Asked Questions