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.
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.
Following are steps that you can follow to use the Indian Bank FD Calculator using the Investment Amount Approach:
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.
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:
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.
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 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.
Simple Interest = (P * R * T)/ 100
P- Investment amount, R- Interest rate of Indian Bank FD (%), T- Tenure of the Indian Bank FD
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 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.
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
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
The Indian Bank fixed deposit interest rate ranges between 2.9% to 5.25% p.a. Also, Indian Bank offers preferential interest rates to its senior citizen depositors. The Indian FD rates for senior citizens range between 3.4% to 5.75%.
The highest FD rate for Indian is 5.25% for a regular investor for the tenure of 1-2 years. Also, for senior citizens, the highest Indian Bank FD interest rate is 5.75%.
The Deposit Insurance Scheme insures the Indian Bank deposits up to INR 5,00,000. Hence Indian Bank fixed deposits are considered safe.
Investors can avail of a loan against their Indian Bank FD. Hence, Indian Bank provides investors with an opportunity to meet their liquidity requirements without breaking their FD. Also, the loan is offered only on 90% of the deposit amount. The terms and conditions of the loan vary as per Indian Bank norms.
Indian Bank allows its investors to withdraw the deposit amount prematurely. However, Indian Bank charges a penalty for premature withdrawal. For all deposits of INR 5 lakh and above, if the investment is withdrawn before completion of 181 days, then the penalty that Indian Bank charges 1% on the interest rate. However, suppose the investment is held for 181 days, and the investment amount is below INR 5 lakhs. In that case, Indian Bank charges no penalty.
Start investing in fixed deposits based on various categories provided by top banks