1. What is the Fixed Deposit Formula?

The Fixed Deposit formula calculates the maturity amount for South Indian Bank fixed deposits using compound interest. It helps investors understand how their money will grow over time with regular compounding.

2. How Does the Calculator Work?

The calculator uses the compound interest formula:

Where:

• \( A \) — Maturity amount (INR)
• \( P \) — Principal amount (INR)
• \( R \) — Annual interest rate (decimal)
• \( n \) — Compounding frequency per year
• \( T \) — Time period in years

Explanation: The formula calculates how much your investment will grow based on the principal amount, interest rate, compounding frequency, and time period.

3. Importance of FD Calculation

Details: Accurate FD calculation helps investors plan their investments, compare different FD schemes, and make informed financial decisions for better returns.

4. Using the Calculator

Tips: Enter principal amount in INR, annual interest rate as decimal (e.g., 0.075 for 7.5%), compounding frequency (e.g., 4 for quarterly), and time in years. All values must be positive.

5. Frequently Asked Questions (FAQ)

Q1: What is the minimum investment for South Indian Bank FD?
A: The minimum investment amount varies by scheme, typically starting from ₹1,000 for regular fixed deposits.

Q2: How often does South Indian Bank compound interest?
A: Compounding frequency depends on the FD scheme - typically quarterly, but can be monthly, half-yearly, or annually.

Q3: Are there tax benefits on FD investments?
A: Regular FDs don't offer tax benefits. Interest earned is taxable as per your income tax slab. Tax-saving FDs have a 5-year lock-in period.

Q4: What is the premature withdrawal policy?
A: Premature withdrawals are allowed but may attract penalty charges and revised interest rates as per bank policies.

Q5: How does this compare to other investment options?
A: FDs offer guaranteed returns and capital safety but generally provide lower returns compared to market-linked investments like mutual funds.