1. What is Quarterly Compounding?

Quarterly compounding means that interest is calculated and added to the principal amount four times per year. This allows your investment to grow faster as you earn interest on both your principal and the accumulated interest.

2. How Does the Calculator Work?

The calculator uses the quarterly compounding formula:

Where:

• \( A \) — Maturity Amount (₹)
• \( P \) — Principal Amount (₹)
• \( R \) — Annual Interest Rate (%)
• \( T \) — Time Period (years)

Explanation: The formula calculates how much your fixed deposit will grow when interest is compounded quarterly over the specified time period.

3. Importance of FD Investment

Details: Fixed deposits with South Indian Bank offer secure investment with guaranteed returns. Understanding the compounding effect helps in better financial planning and maximizing your savings.

4. Using the Calculator

Tips: Enter the principal amount in rupees, annual interest rate in percentage, and time period in years. All values must be positive numbers to get accurate results.

5. Frequently Asked Questions (FAQ)

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

Q2: Are FD interest rates fixed or variable?
A: Fixed deposit interest rates are fixed for the entire tenure at the time of investment.

Q3: How often is interest paid out?
A: Interest can be paid monthly, quarterly, half-yearly, annually, or at maturity, depending on your choice.

Q4: Are there tax benefits on bank FDs?
A: Regular FDs don't offer tax benefits. However, tax-saving FDs have a lock-in period of 5 years and offer tax benefits under Section 80C.

Q5: What is TDS on fixed deposits?
A: Banks deduct TDS at 10% if interest income exceeds ₹40,000 (₹50,000 for senior citizens) in a financial year.