Home
Back
Simple Interest Formula:
| From: | To: |
Simple interest is a method of calculating the interest charge on a loan or deposit based on the original principal amount. It does not compound, meaning interest is not added to the principal for subsequent calculations.
The calculator uses the simple interest formula:
Where:
Explanation: The formula calculates the interest earned on a fixed deposit or savings account based on the principal amount, annual interest rate, and time period.
Details: Accurate interest calculation helps individuals plan their savings, compare different investment options, and understand the returns they can expect from their deposits in Indian Bank.
Tips: Enter the principal amount in Indian Rupees, annual interest rate in percentage, and time period in years. All values must be positive numbers.
Q1: What is the difference between simple interest and compound interest?
A: Simple interest is calculated only on the principal amount, while compound interest is calculated on the principal plus accumulated interest.
Q2: Does Indian Bank offer simple interest on all deposits?
A: Indian Bank offers various deposit schemes with different interest calculation methods. Please check with your local branch for specific product details.
Q3: Are there any taxes on interest earned?
A: Yes, interest earned on bank deposits is taxable as per Indian income tax laws. TDS may be deducted if interest exceeds specified limits.
Q4: Can I calculate interest for partial years?
A: Yes, you can enter decimal values for time period (e.g., 1.5 years for 1 year and 6 months).
Q5: Is this calculator specific to Indian Bank?
A: While designed with Indian Bank in mind, the simple interest formula is universal and can be used for any bank that offers simple interest deposits.