The ICICI Bank FD calculator is an online tool that calculates the maturity amount for a fixed deposit in ICICI Bank. It enables depositors to know the amount that they will get after their ICICI Bank FD matures. This tool evaluates information, such as deposit amount, applicable ICICI Bank FD rates, maturity period as well as interest calculation frequency, to estimate the FD maturity amount.
Fixed deposit is a low-risk investment option where people can invest their additional savings and earn attractive returns. All banks in India, including ICICI Bank, offers various fixed deposits schemes to its customers. The Bank calculates interest on fixed deposits annually, semi-annually, quarterly as well as monthly. Besides, senior citizens can earn a higher rate of interest on ICICI Bank FD as opposed to the general public.
The ICICI Bank offers a wide range of short-term as well as long-term fixed deposit schemes with assured returns. A depositor should invest in an FD scheme that coincides with the purpose of the investment and mirrors his/ her maturity goals. The ICICI Bank FD rates vary as per the chosen investment tenure or maturity period. The Bank offers fixed deposit for an investment tenure of at least 7 days to a maximum of 10 years. Take a look at the ways through which an ICICI FD Calculator can be helpful for a depositor:
An ICICI FD calculator determines the maturity amount for a fixed deposit scheme with the help of the following formula:
A= P(1+r/n)^n*t
In this formula,
‘A’ stands for FD maturity amount that you will generate at the end of the investment tenure,
‘P’ stands for the amount invested in an ICICI Bank FD scheme,
‘r’ stands for the applicable FD interest rate,
‘n’ stands for the number of times the interest is calculated on an FD within a year
‘t’ stands for FD investment tenure
Thus, the value of ‘n’ is ‘1’ if the interest is calculated once a year, ‘2’ if calculated twice of year, ‘4’ if calculated once every quarter and ‘12’ if calculated once every month.
Let’s understand with the help of an example: Suppose a person decides to invest Rs 5 lakh in an ICICI Bank fixed deposit scheme for 5 years that offers an interest rate of 8% calculated half-yearly.
In this case, P = Rs 5,00,000, r =8%, n = 2 and t = 5.
On applying the formula, it comes to A = 5,00,000 (1+8/2)^2*5 and thus, the maturity amount will equal to Rs 7.4 lakh at the end of 5 years.
ICICI Bank calculates interest on fixed deposit by two methods - simple interest and compound interest. The following table represents the differences between simple interest and compound interest:
Categories |
Simple Interest on ICICI Bank FD |
Compound Interest on ICICI Bank FD |
Meaning |
It is a type of FD interest payment method where a pre-decided rate of interest is earned on the investment amount for a specified period of time. |
It is a type of FD interest payment method where a pre-decided interest rate is earned on the principal investment amount but is paid only at maturity. |
Investment/ Principal Amount |
Under this method, the interest is calculated on the principal amount and will be added to the depositor’s bank account at every interval. |
Under this method, the interest compounded during the first month/ interval will be added to the principal amount. The total of the original principal amount and the interest earned will become the new principal amount. The same process continues until maturity. |
Change in Principal Amount |
No changes are made to the principal amount during the FD tenure. |
The principal amount increases at every interval as the interest is compounded to the previous principal amount to become the new FD amount. |
Returns Earned |
Lower interests are earned under simple interest method as there is no change in the principal amount. |
Higher interests are earned under the compound interest method as the principal amount increases at every interval. |
Formula |
The formula for simple interest is SI=P*R*T/100. In this formula, ‘P’ stands for the principal amount, ‘T’ stands for FD investment tenure and ‘R’ stands for ICICI Bank FD interest rate. |
The formula for compound interest is CI=P(1+r/100)-P. In this formula, ‘P’ stands for principal amount while ‘R’ stands for ICICI Bank interest rate. |
Anyone can easily use an ICICI FD calculator to determine the maturity amount for a fixed deposit on policybazaar.com. Follow the steps given below to use an ICICI FD interest calculator:
Take a look at the advantages of using an ICICI FD calculator:
For example, if ICICI Bank is offering an interest rate of 8% on your FD amount, then you need to divide 72/ 8 as per the rule of 72, which comes to 9. Thus, it will take about 9 years for your fixed deposit amount to double up for the chosen ICICI Bank FD scheme.