ICICI FD Calculator
The ICICI FD calculator is a tool that assists investors in calculating the right balance as far as the amount to invest in FD and for how long. You can use the calculator to analyze the maturity amounts and interest rates of the fixed deposits offered by different financial institutions. When you have all the right information on your hand, you will be able to make a more informed decision.
Fixed Deposits (FDs) are one of the most popular investment options among individuals looking for a safe and secure way to grow their savings. You can deposit a lump sum of money in a fixed deposit for a specific period, usually from months to several years. In return, the bank offers a guaranteed interest rate higher than the interest rate offered on a regular savings account.
FDs can be categorized as non-cumulative and cumulative. In a non-cumulative scheme, the interest amount is payable on a monthly, quarterly, semi-annual, or annual basis. In a cumulative fixed deposit scheme, the interest amount is compounded over the term of the deposit and paid at maturity.
How Does The ICICI FD Calculator Work?
The FD calculator uses the below formula to calculate interest for a non-cumulative FD (simple interest).
Where,
M is the Maturity amount
P is the Principal amount that you deposit
r is the rate of interest per annum
t is the tenure in years
The FD calculator uses the formula below to calculate the cumulative FD’s maturity amount (compound interest).
Where,
M is the Maturity amount
P is the Principal amount that you deposit
r is the rate of interest per annum
n is the number of times the amount is compounded
t is the tenure in years
Example:
Ms. Irina is planning to put ₹5.5 lakhs into a fixed deposit. The FD is offering an interest rate of 6.3% per annum. The tenure of the FD is 8 years. She wishes to receive the interest income every three months. Let’s use the simple interest formula to figure out the answer.
M = P + (P x t x r / 100)
M = 5,50,000 + (5,50,000 x 8 x 6.3/100)
M = 5,50,000 + (5,50,000 x 8 x 0.063)
M = 5,50,000 + 2,77,200
M = ₹8,27,200
Interest = 8,27,200 - 5,50,000
Interest = ₹2,27,200
Interest payable every three months = 2,27,200 / 32 = ₹7,100
So, if Ms. Irina invests ₹5.5 lakhs in a fixed deposit at an interest rate of 6.3% per annum for a tenure of 8 years, she will earn an interest income of ₹7,100 every three months. She will receive her principal amount of ₹5.5 lakhs at the end of the tenure.
If Ms. Irina invests the same amount but chooses to receive her principal and interest at maturity, she will receive:
M = P (1 + r/n) ^ (n x t)
M = 5,50,000 (1 + 0.063)^(1 x 8)
M = 5,50,000 x (1.063)^8
M = 5,50,000 x 1.6302946981345
M = ₹8,96,662 (approximately).
Irina will receive a maturity amount of around ₹8.96 lakhs if she chooses to invest her ₹5.5 lakhs at an interest rate of 6.3% for a tenure of 8 years.
How To Use The ICICI Fixed Deposit Calculator?
You can figure out the interest income and the maturity value by using the fixed deposit calculator. We have mentioned the steps on how you can use the FD calculator.
- Select whether you wish to receive a periodic payout or a cumulative payout.
- Enter the deposit amount.
- Type in the interest rate offered by the FD.
- Key in the tenure of the FD.
The calculator will analyze the above details and show you the interest income and maturity amount.
Benefits Of Using The ICICI Fixed Deposit Calculator
The following are some of the advantages of the FD calculator.
- The FD calculator is a great tool for calculating FD returns quickly. It helps you make more informed financial decisions and earn higher returns.
- The calculator is completely free to use on any device.
- The calculator provides error-free results every time.
- The calculator saves you time by giving results instantly. On the other hand, performing calculations manually takes a lot of time.