How does compound interest work?

Compound interest is the interest calculated on the initial principal and also on the accumulated interest from previous periods, allowing your investment to grow faster over time.

What information do I need to use the calculator?

You need to input the principal amount, annual interest rate, number of years you plan to invest, and how often you want the interest to be compounded (e.g., annually, monthly).

Can I choose different investment frequencies?

Yes, you can choose to invest one-time or make regular contributions either monthly or yearly.

Can I use this calculator for fixed deposits?

Yes, it can be used to estimate returns on fixed deposits by inputting the relevant details such as principal and interest rates.

Indian Bank Compound Interest Calculator

The Indian Bank Compound Interest Calculator helps you estimate how much your investments will grow over time through compounding. This easy-to-use tool considers principal amount, interest rate, investment duration, and compounding frequency.

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7.7 Crore

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4.2 Crore

Policies Sold

Disclaimer: #The investment risk in the portfolio is borne by the policyholder. Life insurance is available in this product. The maturity amount of Rs 1 Cr. is for a 30 year old healthy individual investing Rs 10,000/- per month for 30 years, with assumed rates of returns @ 8% p.a. that is not guaranteed and is not the upper or lower limits as the value of your policy depends on a number of factors including future investment performance. In Unit Linked Insurance Plans, the investment risk in the investment portfolio is borne by the policyholder and the returns are not guaranteed. Maturity Value: ₹1,05,02,174 @ CAGR 8%; ₹50,45,591 @ CAGR 4%. *Tax benefits and savings are subject to changes in tax laws. All plans listed here are of insurance companies’ funds.

What is the Indian Bank - Compound Interest Calculator?

The Indian Bank Compound Interest Calculator is an online tool that calculates how much your investment can grow over time using compound interest. By entering key details, it shows the projected returns. It requires:

Principal Amount (P): The money you invest initially.
Interest Rate (r): The annual interest rate.
Investment Duration (t): The time your money will grow.
Compounding Frequency (n): How often interest is added (e.g., annually, quarterly).

Power of Compounding Calculator

YOU INVEST

YOU GET

Investing Amount

₹500 ₹150,000

Invest for (in years)

Stay invested for (in years)

Interest rate

1% 25%

Sensex has given 10% return from 2010-2020

Uses of a Compound Interest Calculator- Indian Bank

The Compound Interest Calculator Online By Indian Bank serves several purposes:

Investment Planning: See how much to invest to achieve your goals.
Comparison: Adjust variables to compare different scenarios.
Financial Forecasting: Understand potential returns for better decisions.
Educational Tool: Learn how compound interest boosts savings.

Steps to Use the Policybazaar Indian Bank Compound Interest Calculator

Using the Policybazaar Indian Bank Compound Interest Calculator is an easy to use online tool. Follow these steps to understand its use:

Investment Frequency: Choose from one-time, monthly, or yearly investments.
Principal Amount: Specify how much you want to invest.
Investment Duration: Select the years you plan to invest.
Stay Invested: Select for how long you want to keep your money invested to earn compound interest.
Interest Rate: Insert the annual interest rate.
View Results: The calculator will display:
- Total Invested Amount
- Total Maturity Amount
- Compound Interest Earned

How Does the Indian Bank Compound Interest Calculator Work?

The formula used by the calculator is:

Example Calculation of Indian Bank Compound Interest Calculator

If you invest ₹3,00,000 in a lump sum for 5 years with an annual interest rate of 10%, the returns will be as follows:

Year	Principal Amount (P)	Interest Compounding Formula	Total Compounded Amount (A)	Total Compound Interest (CI)
1 Year	₹3,00,000	A = 3,00,000 (1+ 10/100)^1	₹3,30,000	CI= ₹30,000
2nd Year	₹3,30,000	A= 3,30,000 (1+10/100)^1	₹3,63,000	CI= ₹33,000
3rd Year	₹3,63,000	A= 3,63,000 (1+ 10/100)^1	₹3,99,300	CI= ₹36,300
4th Year	₹3,99,300	A= 3,99,300 (1+ 10/100)^1	₹4,39,230	CI= ₹39,930
5th Year	₹4,39,230	A= 4,39,230 (1 + 10/100)^1	₹4,83,153	CI= ₹43,923

So,

After 4 years of investment at a 10% annual rate:

Total Amount: ₹4,83,153 (1.6 times of invested amount).
Total Compound Interest Earned: ₹1,83,153.

Benefits of Compound Interest Calculator- Indian Bank

The benefits of using the Indian Bank Compound Interest Calculator include:

Simplicity: Easy-to-use interface that requires minimal inputs.
Accuracy: Provides precise calculations based on entered data.
Instant Results: Offers immediate feedback on potential returns.
Financial Awareness: Enhances understanding of how compounding works and its benefits.

Conclusion

The Indian Bank Compound Interest Calculator empowers you to make smarter investment decisions by understanding how the power of compounding works. Use this tool to plan for future financial goals, like retirement savings or major purchases.

FAQs

What is the Indian Bank Compound Interest Calculator?

The Indian Bank Compound Interest Calculator is an online tool that helps you calculate how much your investment will grow over time with compound interest.
How does compound interest work?

Compound interest is the interest calculated on the initial principal and also on the accumulated interest from previous periods, allowing your investment to grow faster over time.
What information do I need to use the calculator?

You need to input the principal amount, annual interest rate, number of years you plan to invest, and how often you want the interest to be compounded (e.g., annually, monthly).
Can I choose different investment frequencies?

Yes, you can choose to invest one-time or make regular contributions either monthly or yearly.
Can I use this calculator for fixed deposits?

Yes, it can be used to estimate returns on fixed deposits by inputting the relevant details such as principal and interest rates.

†Policybazaar does not endorse, rate or recommend any particular insurer or insurance product offered by any insurer. This list of plans listed here comprise of insurance products offered by all the insurance partners of Policybazaar. The sorting is based on past 10 years’ fund performance (Fund Data Source: Value Research). For a complete list of insurers in India refer to the Insurance Regulatory and Development Authority of India website, www.irdai.gov.in

Past 10 Years' annualised returns as on 01-12-2024

^The tax benefits under Section 80C allow a deduction of up to ₹1.5 lakhs from the taxable income per year and 10(10D) tax benefits are for investments made up to ₹2.5 Lakhs/ year for policies bought after 1 Feb 2021. Tax benefits and savings are subject to changes in tax laws.

*All savings are provided by the insurer as per the IRDAI approved insurance plan.

Tax benefit is subject to changes in tax laws. Standard T&C Apply
~Source - Google Review Rating available on:- http://bit.ly/3J20bXZ

^^The information relating to mutual funds presented in this article is for educational purpose only and is not meant for sale. Investment is subject to market risks and the risk is borne by the investor. Please consult your financial advisor before planning your investments.

#The investment risk in the portfolio is borne by the policyholder. Life insurance is available in this product. The maturity amount of Rs 1 Cr. is for a 30 year old healthy individual investing Rs 10,000/- per month for 30 years, with assumed rates of returns @ 8% p.a. that is not guaranteed and is not the upper or lower limits as the value of your policy depends on a number of factors including future investment performance. In Unit Linked Insurance Plans, the investment risk in the investment portfolio is borne by the policyholder and the returns are not guaranteed. Maturity Value: ₹1,05,02,174 @ CARG 8%; ₹50,45,591 @ CAGR 4%

¶Long-term capital gains (LTCG) tax (12.5%) is exempted on annual premiums up to 2.5 lacs.

**Returns are based on past 10 years’ fund performance data (Fund Data Source: Value Research).

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