1. What is Fixed Deposit Calculator?

The FD Calculator helps you estimate the maturity amount of your fixed deposit investment in ICICI Bank based on principal amount, interest rate, compounding frequency, and tenure.

2. How Does the Calculator Work?

The calculator uses the compound interest formula:

Where:

• \( Principal \) — Initial investment amount
• \( Rate \) — Annual interest rate (in decimal)
• \( Compounding \) — Number of compounding periods per year
• \( Years \) — Investment tenure in years

Explanation: The formula accounts for the effect of compounding where interest is earned on both principal and accumulated interest.

3. Importance of FD Calculation

Details: Accurate FD calculations help in financial planning, comparing investment options, and understanding how compounding can grow your money over time.

4. Using the Calculator

Tips: Enter principal amount in dollars, annual interest rate as percentage, select compounding frequency, and investment term in years. All values must be positive.

5. Frequently Asked Questions (FAQ)

Q1: What is the minimum deposit for ICICI Bank FD?
A: ICICI Bank typically requires a minimum of $1,000 for fixed deposits, but this may vary by location.

Q2: How does compounding frequency affect returns?
A: More frequent compounding (monthly vs annually) results in higher returns due to the compounding effect.

Q3: Are FD interest rates fixed?
A: Yes, ICICI Bank FD rates are fixed at the time of deposit and remain constant throughout the tenure.

Q4: What is the maximum tenure for ICICI Bank FD?
A: ICICI Bank offers FDs with tenures ranging from 7 days to 10 years.

Q5: Are there tax benefits on FDs?
A: Regular FDs don't offer tax benefits. Interest earned is taxable as per your income tax slab.