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What is the IndusInd Bank FD calculator?
Fixed deposits have been the go-to investment option over any other financial instrument for an average Indian investor. The primary reason for this preference is the involvement of low-risk investment with guaranteed returns. As fixed deposits are not associated with the stock market performance, they do not expose an investor’s hard-earned income to any unexpected volatilities. Hence, FDs have remained the ideal choice for investors who are not well-versed with the market and wish to limit their risk exposure. Though investing in FDs seems easier, an average investor finds it confusing to calculate the returns on an FD. That said, calculating returns has never been easier with the help of online FD calculators.
The IndusInd Bank which started in April 1994, provides fixed deposit schemes where they offer guaranteed return on investment with competitive benefits so that the investors work for them. They have flexible investment tenures, thereby making it easier for investors to meet their short-term and long-term goals.
How Does an FD Calculator Work?
Well, calculating the returns on an FD scheme is perhaps the most crucial and interesting aspect for an investor. Interest on FDs is of two types - simple interest and compound interest. While both are used invariably, we often observe that investors either prefer cumulative FDs where the interest is received at maturity along with the principal investment amount, or noncumulative FDs where interest payouts are done periodically, i.e., monthly, quarterly, half-yearly, annually, and the principal amount at maturity.
The IndusInd Bank FD calculator calculates returns on FD and the amount to be received upon maturity based on the consideration of variables like principal investment amount, tenure of investment, and the interest rate offered by the bank.
What Is the FD Formula?
- The FD formula considers three factors - principal amount, interest rate, and tenure.
- Here’s the FD formula:
- m = p (1 + r/n) ^ nt
- m = the amount you will receive upon maturity
- p = the amount you are looking to invest
- r = rate of interest
- n = frequency of compounding
- t = tenure of the deposit
How to Use the IndusInd Bank FD Calculator Online?
Using the online IndusInd Bank FD calculator has never been easier. Here are the steps to follow:
Let us suppose that you want to invest Rs. 1,00,000 in an FD with IndusInd Bank for 2 years. The interest rate is 8% p.a. Considering these values, you can estimate your interest and maturity proceeds using the online IndusInd Bank FD calculator as follows.
Step 1: Visit the IndusInd Bank FD Calculator on Angel One.
Step 2: Enter Rs. 1,00,000 in the "Total Investment" field.
Step 3: Choose the duration of the FD as 2 years.
Step 4: Select the interest rate as 8%.
Step 5: You can instantly view your interest and maturity proceeds. While the estimated interest would be Rs. 17,166, the total maturity amount comes to Rs. 1,17,166.
Benefits of using an FD calculator
Safety is the paramount feature of an FD. Some of the benefits that come with using an FD calculator are:
Fast, error-free math:
Online FD calculators facilitate error-free calculations. You can do it from the comfort of your home using a mobile device or computer. Regardless of the number of times you calculate, it will always result in error-free calculations, and it takes a second to get desired output. It’s a free tool that can be used many times.
Know estimated earnings:
As an investor, you can save time and efforts involved in manual calculations by opting for the calculator using multiple tenures, different amounts, and various interest rates.
The FD calculator enables ease of calculations on your investment within different types of FD schemes as well as other variations in interest and tenure, allowing the investor to make an informed decision on which FD scheme to choose from the available offerings.
Types of IndusInd Bank FD Schemes
Regular Tenure Schemes:
This is the normal FD offered by the bank - where it has multiple durations with the least one starting from 7 days. Senior citizens receive an additional 0.50% across all FD schemes with different tenures and up to 5 crores.
The IndusInd bank allows recurring deposits where the tenure of RD is in multiples of months and the corresponding rate of FD will be applicable. The minimum value of RD is Rs 500 and thereafter in multiples of 100.
Five-Year Tax Saving FD:
The Indus Tax Saver Scheme (5 years) allows you to save taxes under Section 80C of the Income Tax Act. It has a five-year lock-in period. Currently, an investor can deposit an amount up to 2 crores only under this scheme.
The IndusInd FCNR/RFC deposit accounts will allow you to hold money in six different currencies such as USD, CAD, GBP, EUR, AUD, and JPY, and repatriate the principal and interest. Any high value of Rs 2 Crs (or equivalent) & above shall be accepted at the sole discretion of the bank.
No premature or partial withdrawals are allowed in case of such deposits where the minimum deposit amount is Rs. 5 crores or more.
Factors affecting the maturity amount of your FD.
- Principal: It is the amount you invest at the beginning. It is vital to understand that a higher investment amount attracts higher interest.
- Interest rate: It is the rate that determines how much money you will receive beyond the principal investment amount. It is a given thing that a higher interest rate results in higher earnings.
- Tenure: FDs usually have high interest rates for longer tenures, which results in higher earnings.
- Compounding frequency: This talks about the frequency or instances interest is calculated on your investment and hence, a higher compounding frequency means higher earnings.
- Taxation: As an instrument, FD attracts tax on its interest. So, the tax liability decreases your earnings.
- Inflation: FDs have always been unable to provide decent returns that can even meet inflation and if the inflation rate exceeds the FD interest rate, investor’s earnings will wear down.
What is the IndusInd FD calculator?
The IndusInd bank FD calculator is an online tool to determine the earnings and maturity proceeds of an FD offered by IndusInd.
How to use the IndusInd Bank FD calculator online?
Using the calculator is very simple and quick. All you need is the principal, interest, and tenure details to get your estimated earnings on maturity.
Is the IndusInd FD calculator free to use?
Yes. The IndusInd FD calculator online is free to use.
How do you calculate the FD maturity amount?
There are two ways of doing this. You can either calculate the maturity manually or use the online FD calculator. The second way is convenient and eliminates human error, offering accurate information.
Is there a penalty if the bank FD is withdrawn prematurely?
Yes. Like most banks, IndusInd Bank also charges a penalty on premature withdrawals done before a specified period.