In this article

**About Indian Bank Fixed Deposit**

A leading public sector bank, Indian Bank is highly sought after for its range of financial services on offer. Among them are its hassle-free and secure fixed deposit options that guarantee profitability. An investor can use Indian Bank FD calculator before investing, to understand the exact interest-earning potential from it.

These calculators are available online, making them easily accessible to all. Further, with instant calculations, an investor can quickly determine his/her FD investment options.

In the most basic sense, FD calculators help investors understand profitability from their fixed deposits. However, apart from helping determine the maturity amount, it can assist in calculating interest earnings. Nevertheless, to initiate such a calculation, investors need to provide certain data.

The investment quantum, term, interest rate and frequency of compounding interest are essential for Indian Bank fixed deposit interest rates calculator functioning. Besides its usage, one should also understand the manifold benefits of this tool.

**Benefits of Using Indian Bank FD Calculator**

Fixed deposits are safer forms of investment when compared to other instruments. Still, to make an informed decision, one needs to understand his/her exact profitability. Investors can look forward to the following benefits from such a tool –

- This calculator offers a fast and convenient way to ascertain interest earnings. While manual calculations are time-consuming, these tools facilitate instant calculations that take just a few seconds.
- Using a calculator to determine profitability ensures accuracy. Manual calculations, on the other hand, can lead to costly errors.
- Lastly, this calculator allows individuals to adjust the various parameters until the ROI matches their expectations. Thus, this tool can be crucial to determine the perfect principal investment and other factors.

However, to calculate FD returns using this online tool, an investor needs to know the FD terms and rates offered by Indian bank.

**Understanding Indian Bank FD interest Rates and Associated Terms**

Interested investors should take a look at the table below to understand the return rates on offer. Knowing the same is also essential to operate an Indian Bank fixed deposit calculator effectively.

Investment tenure | Normal interest rates | Senior citizen interest rates |

7-90 days | 3.75% | 4.25% |

91-180 days | 4.75% | 5.25% |

181-364 days | 5.25% | 5.75% |

1 year | 5.75% | 6.25% |

1 year and a day-5 years | 5.65% | 6.15% |

Indian Bank provides an extra 0.5% per annum interest to investors aged 60 and above. Therefore, these investors can reap increased benefit by depositing their excess funds in an FD account.

Also Read, Indian Bank FD Interest Rates

**Formula for Calculating FD Returns**

Indian Bank fixed deposit calculator 2020 uses a specific formula to determine profitability from an FD. One can utilise this same formula for manual FD calculation as well.

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

In this equation,

- ‘A’ is the amount on maturity,
- ‘P’ is initial investment
- ‘r’ is its interest rate
- ‘t’ gives investment tenure
- ‘n’ denotes the interest payout frequency

**Example of Indian Bank FD Calculation**

To illustrate real-life usage of this formula, one can refer to the following example –

Mr. Ray decides to invest Rs.2 lakh in an Indian Bank FD after his retirement. He chooses a tenure of 5 years and an annual compounding interest. The rate of interest, as can be ascertained from the table above, is 6.15%. Thus his maturity amount calculation would look like the following –

A = 200000 (1+0.0615/1) ^ 1 x 5

Solving this equation reveals that Mr. Ray’s maturity amount from the FD would be Rs.2,69,544. Now, to determine his interest earnings (I), he must subtract the principal investment from the maturity amount. Thus,

I = Rs. (2,69,544 – 2,00,000)

I = Rs.69,544

Therefore, this complicated calculation reinforces why Indian Bank FD interest calculator is the better option, rather than doing it manually.

**How do Various Factors Affect FD Interest Earnings?**

Using FD calculators reveals the four prime factors that determine gains from the fixed deposit. Investors can try out various combinations of these factors to maximise their interest-earning potential from their FD investment.

**Interest rates –**The most obvious deciding factor is the rate of interest on the FD. Unfortunately, the interest rate is locked in place with an investment term. This means that the tenure for investment will determine the interest that an individual can earn.

**Tenure –**Speaking of tenure, one look at the table above reveals that longer terms result in increased interest. Therefore, to maximise profits, one can pick more extensive terms.

**Investment sum –**The amount of money invested is also crucial in determining earnings. Interest generated through an FD is directly proportional to the principal sum. Therefore, individuals trying to earn higher returns should devote additional funds to their fixed deposits.

The frequency of interest computation also influences total interest generated, albeit in a minor way. Thus, an investor needs to consider each parameter carefully before depositing excess funds.

**FAQs**

**Can I open my fixed deposit account without PAN?**

Yes. Opening an FD account without a PAN card is possible, but not recommended. Doing so can prevent you from claiming TDS benefits on earnings.

**Can I change my FD term after starting the investment?**

No. Changing the term is not possible after the investment term begins. You must instead, specify the tenure at the outset.

**What is the maximum Indian Bank FD rate available to senior citizens?**

Senior citizen investors can earn up to 6.25% interest per annum. However, to earn the same, an investor needs to park the funds for at least a year.