Calculate Interest On FD ICICI

ICICI Fixed Deposit Formula:

\[ A = P \times (1 + r/n)^{n \times t} \]

Principal Amount (P):

₹

Annual Interest Rate (r):

Compounding Frequency (n):

Time Period (t):

years

Maturity Amount (A):

Total Interest Earned:

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1. What is the ICICI Fixed Deposit Formula?

The ICICI Fixed Deposit formula calculates the maturity amount using compound interest principles. It determines how much your investment will grow over time based on the principal amount, interest rate, compounding frequency, and time period.

2. How Does the Calculator Work?

The calculator uses the compound interest formula:

\[ A = P \times (1 + r/n)^{n \times t} \]

Where:

\( A \) — Maturity amount (₹)
\( P \) — Principal amount (₹)
\( r \) — Annual interest rate (decimal)
\( n \) — Compounding frequency per year
\( t \) — Time period in years

Explanation: The formula calculates how your investment grows with compound interest, where interest is added to the principal at regular intervals, earning more interest in subsequent periods.

3. Importance of FD Calculation

Details: Accurate FD calculation helps investors plan their finances, compare investment options, and understand the potential returns from their fixed deposit investments with ICICI Bank.

4. Using the Calculator

Tips: Enter principal amount in rupees, annual interest rate as a percentage, select compounding frequency, and time period in years. All values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: What is the minimum investment for ICICI FD?
A: ICICI Bank typically requires a minimum investment of ₹10,000 for fixed deposits, though this may vary based on the specific FD scheme.

Q2: How often does ICICI compound interest on FDs?
A: ICICI offers various compounding options including monthly, quarterly, half-yearly, and annual compounding, depending on the FD tenure and scheme.

Q3: Are ICICI FD returns taxable?
A: Yes, interest earned on fixed deposits is taxable as per your income tax slab. TDS is deducted if interest exceeds ₹40,000 (₹50,000 for senior citizens) per financial year.

Q4: Can I withdraw my ICICI FD prematurely?
A: Yes, but premature withdrawals may attract penalty charges and the interest rate may be revised to the rate applicable for the period the FD was held.

Q5: How does compounding frequency affect returns?
A: More frequent compounding (monthly vs annually) results in higher returns due to the compounding effect, where interest earns additional interest.