1. What is Indian Bank Fixed Deposit?

Indian Bank Fixed Deposit is a financial instrument where you deposit a lump sum amount for a fixed period at a predetermined interest rate. It offers higher returns than regular savings accounts with guaranteed returns.

2. How Does the Calculator Work?

The calculator uses the Indian Bank Fixed Deposit formula:

Where:

• \( A \) — Maturity amount (₹)
• \( P \) — Principal amount (₹)
• \( R \) — Annual interest rate (%)
• \( T \) — Time period (years)

Explanation: The formula calculates quarterly compounded interest, which is the standard compounding frequency for Indian Bank fixed deposits.

3. Importance of Fixed Deposit Calculation

Details: Accurate fixed deposit calculation helps in financial planning, understanding returns on investment, and comparing different investment options for optimal wealth creation.

4. Using the Calculator

Tips: Enter principal amount in ₹, annual interest rate in %, and time period in years. All values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: What is the minimum deposit amount for Indian Bank FD?
A: The minimum deposit amount varies by account type, but typically starts from ₹1,000 for regular fixed deposits.

Q2: Are Indian Bank FDs safe?
A: Yes, Indian Bank FDs are considered safe as they are offered by a public sector bank and deposits are insured up to ₹5 lakhs by DICGC.

Q3: What is the current interest rate for Indian Bank FDs?
A: Interest rates vary based on tenure and are subject to change. Please check Indian Bank's official website for current rates.

Q4: Is TDS applicable on Indian Bank FDs?
A: Yes, TDS is applicable on interest income if it exceeds ₹40,000 (₹50,000 for senior citizens) in a financial year.

Q5: Can I withdraw my FD before maturity?
A: Yes, but premature withdrawal may attract penalty charges and the interest rate may be revised to the applicable rate for the period the deposit was held.