ICICI FD Calculator

About ICICI FD Calculator

Headquartered in Mumbai, ICICI Bank is one of the leading companies in India, offering financial services and a wide variety of investment products, such as FD schemes. It also provides financial tools to customers to easily determine the investment growth that will accrue at maturity. The ICICI FD calculator is a financial tool that helps investors figure out annualised, monthly or quarterly interest earned upon a lump sum deposit.

Let’s find out more information about this financial tool.

How to Use ICICI FD Calculator?

Here are a few easy steps you need to follow to determine the maturity value of your FD investment using an ICICI FD Calculator.

Step 1: Enter the Principal Amount

Enter the money you want to invest in your preferred ICICI Bank FD Scheme. The minimum FD amount you can deposit is ₹10,000.

Step 2: Enter Interest Rates

Each FD scheme offers a specific rate of interest. Therefore, enter the specific interest rate that applies to the type of scheme you decide to avail. The interest rate also depends on the type of customer you are. For instance, if you are a senior citizen customer, you can enter an additional 0.50% interest rate.

Step 3: Select a Suitable Tenure

Enter a suitable tenure for your ICICI FD investment. You can choose a flexible tenure between 7 days to 10 years, as per your choice or financial requirement.

The ICICI Bank FD calculator will automatically display the total interest and maturity value you get to receive during/at the end of the tenure of your investment.

How Does an FD Calculator Work?

An FD calculator uses two formulas mainly to determine the total maturity value of an investment. This financial tool considers various factors such as interest rate, tenure and the sum of money deposited.

Formula to Calculate ICICI FD Returns

The ICICI FD returns can be calculated using two different sets of mathematical formulas. Let’s take a look at such formulas:

1. Simple Interest Formula

Simple interest formula helps to calculate the amount of interest payable to a depositor for investing a sum of money at a predetermined rate for a fixed period. In mathematical terms, the amount of interest is calculated by multiplying the principal amount by the rate of interest and tenure of an FD scheme. 

Let’s understand this method with the help of its formula and an example. 

Simple Interest = (P * R * T)/100

Where,

• P = Principal Amount or a sum of money an investor deposits,

• R = Rate of Interest that a bank offers for making a deposit,

• T = Tenure of a scheme or a time period for which investors deposit a sum of money.

Now, let’s say you want to deposit ₹50,000 in an FD scheme of ICICI Bank for 10 years at a rate of 7%. Here, the Principal Amount (P) = ₹50,000, the Rate of Interest that is offered by ICICI Bank  = 7% and the Tenure of this scheme = 10 years.

Applying this formula, Simple Interest = ₹(50,000 * 7 * 10) /100 = ₹35,000, meaning the amount of interest earned after 10 years is ₹35,000.

After determining the amount of interest, you can use it to determine your investment's maturity value.

Maturity Value = Principal Amount + Simple Interest =  ₹(50,000 + 35,00) = ₹85,000.

Therefore, the maturity value of your investment after 10 years will be ₹85,000, including the sum of money you deposit and the amount of interest. 

2. Compound Interest Formula

The compound interest formula is another method of calculating interest earned from an FD investment based on the initial principal amount and the accumulated interest, which is added to the principal amount. 

Under this method, the interest is compounded at a predetermined frequency. Let's understand this method in a better way with an example.

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

In this formula, P stands for the Principal Amount,  A stands for the Maturity Amount, r stands for the Rate of Interest, t stands for the Number of years, and n stands for the Number of Compounding in a year.

Now let’s say you want to invest ₹5 lakhs in an ICICI FD scheme offering 8% interest half-yearly for a tenure of 5 years.

In this case, Principal Amount (P) = ₹5 lakhs, Number of years (t) = 5, Number of Compounding in a year (n) = 2 and Rate of Interest (r) = 8%.

So, Maturity Amount (A) = ₹{5,00,000 (1+0.08/2) ^ (2 * 5)} = ₹7.4 lakhs.

Now that you know your maturity value is ₹7.4 lakhs, you can calculate the amount of interest you will earn from this scheme.

Interest = Maturity Amount - Principal = ₹(7.4 -5) lakhs = ₹2.4 lakhs.

The interest you will receive at the end of 5 years will be  ₹2.4 lakhs.

Advantages of Using the ICICI FD Calculator

Here is a list of advantages of using an ICICI FD interest rates calculator.

• ICICI FD calculator has a user-friendly interface, enabling all individuals to access this tool easily from all devices. It is very convenient to use once they follow just a few simple steps.

• The ICICI FD calculator accurately determines an FD investment's interest amount and maturity value. This tool reduces any chances of errors while using mathematical formulas involved in the manual process.

• The ICICI FD calculator helps individuals make financial decisions by providing accurate results. With an advance estimate of the total earnings, an individual can make an informed decision regarding their cash flow and investment portfolio.

• Manual earnings calculations from an FD investment can take time and effort. The ICICI FD calculator eliminates such issues and provides instant results with just one button click.

• The ICICI FD calculator can be used for comparing returns by determining the maturity amount and interest of different FD schemes. Through this comparison, an individual can choose which FD scheme and its return aligns with their financial requirement.

To conclude, the ICICI FD calculator helps investors or depositors to figure out their returns easily, in a couple of seconds, just by entering a few details. Hopefully, now you have a clear idea about how to use it. Therefore, make sure to check your returns first before investing in a particular FD scheme.