Total investment

₹

Rate of interest (p.a)

%

Time period

Years

Invested amount | ₹ |

Est. returns | ₹ |

Total value | ₹ |

Total investment

Total returns

Fixed deposits involve parking a significant sum of money for a specified period in a bank account. In return, depositors receive attractive interest on the principal sum when the FD matures. A fixed deposit calculator is an online tool that allows individuals to determine their returns from the deposit before committing to such an FD.

IDBI bank, one of the leading financial institutions in India, offers an array of services to its customers. Among them are such aforementioned fixed deposit plans, primarily suitable for individuals seeking an effective savings option.

IDBI Bank fixed deposits are hassle-free investment options where consumers can park their excess funds and generate additional returns.

Those looking to avail the advantage of fixed deposits offered by this bank can learn more about their interest earnings with the help of an IDBI FD calculator.

Also Read, **IDBI Bank FD interest rates **

An individual needs to enter a few details to arrive at his/her return on investment from the fixed deposit. Such a calculator works on the following formula –

**A = P (1+r/n)^n x t**

Where,

- A is the maturity amount
- P is the initial sum of investment
- r is the annual rate of interest
- n refers to the number of times that interest applied is compounded
- t is the maturity period

**Example of IDBI FD Calculation**

To understand fixed deposits better, one can refer to the example of Mr. Rao’s FD investments below –

Mr. Rao, a 52-year old employee of a private organization, decided to invest Rs.3 lakh for a tenure of 5 years. After consulting the table above, it is clear that he is eligible for returns of 5.9% per annum. Further, he picks half-yearly compounding interest for the FD. In this case, the parameters for IDBI FD calculator are as follows –

P = Rs.3 lakh

r = 5.9/100 = 0.059

t = 5 years

n = 2

Thus, placing these figures in the given formula –

A = 3,00,000 (1+0.059/2)^2 x 5

A = Rs.4,01,222

Therefore, the interest earned on deposit (I) is derived from the equation I = A-P

I = Rs.401222 – Rs.300000

I =Rs.101222

An IDBI FD interest rates calculator uses this same equation to determine profitability from fixed deposit investment. Nevertheless, the tool accelerates the calculation process significantly, ensuring faster and more accurate results.

Every factor involved in such a calculation plays a vital role in determining the returns from IDBI fixed deposits. Listed below are a few techniques that can help investors arrive at the desired return outcomes by adjusting these aspects.

**Investment sum or principal**

To maximize gains from fixed deposits, an investor needs to maximize the initial investment amount as well. While using the IDBI FD calculator, one can increase the deposit amount to notice a positive change in his/her returns. Inversely, any reduction in investment will also decrease overall interest earnings.

**Investment term**

Picking the correct maturity term is essential to reap the most rewards out of your FD investment. As a rule, fixed deposits are beneficial as both short-term deposits, as well as long-term options. Nevertheless, due to the compound rate of interest calculation, individuals planning to deposit for the long-term can avail more benefits.

**Rates of interest**

Regardless of investment tenure and principal, higher interest rates always allow a depositor to earn more. The IDBI FD calculator can help a person decide the correct choice when it comes to tenure. This, in turn, also decides the eligible rates. Thus, maturity terms and rates of interest are interconnected for fixed deposit schemes.

It is crucial to remember that deciding to deposit a certain amount, without prior information, can compromise a person’s finances. Such calculators can, thus, help an individual make informed decisions regarding fixed deposit investments.

After assessing what such a calculator does, one should understand why such calculators are vital to maximizing their FD returns. Listed below are some advantages of using the IDBI fixed deposit calculator –

- It establishes the amount of money that an individual needs to deposit in order to acquire the desired returns.
- Such calculators can aid in assessing how FD interest rates play a crucial role in determining profitability.
- These calculators allow depositors to take a premeditated decision by carefully understanding each factor affecting FD returns.
- Furthermore, one can use the IDBI FD calculator to compare the various tenure and maturity terms. Doing so ensures that a depositor picks the most suitable fixed deposit option.
- Lastly, these calculators promise speed and accuracy when determining returns from investments. Manual calculations, on the other hand, are time-consuming and may lead to erroneous results.

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