Want us to help you with anything?
Request a Call back

This field is required Only alphabetes are allowed
This field is required Only alphabetes are allowed
Please enter valid number
Please enter valid email
Please select product type
Please enter valid pincode

Thank you for your request.

Your reference number is CRM

Our executive will contact you shortly


2 mins Read | 11 Months Ago

The Power of Compound Interest - How it Works in FD

The Power of Compound Interest


Have you ever wondered how a small investment today can turn into a significant sum in the future? Get ready to dive into the fascinating world of compound interest and discover how it works wonders in Fixed Deposits (FDs).

In this article, we'll explore the secrets behind compound interest, look at the FD Compound Interest Formula and shed light on ICICI Bank's exceptional offerings such as interest rates that can go as high as 7.2% on FDs (7.75% in case of senior citizens).

What is Compound Interest?

Unlike simple interest, which is calculated only on the initial principal amount, compound interest considers the accumulated interest from previous periods.

Comprehending the FD Compound Interest Formula

To understand the potential of compound interest, let's see the formula used to calculate it. The formula for Compound Interest on FD is:

A = P(1 + r/n)^(nt)


A = The future value of the investment/loan including interest

P = The principal amount (initial investment)

r = The annual interest rate (expressed as a decimal)

n = The number of times interest is compounded per year

t = The number of years the money is invested

Understanding this formula may seem difficult at first, but banks like ICICI Bank have simplified the process, making it easier to reap the benefits of compound interest on your FDs.

Exploring the Magic of Compound Interest

Let's understand compound interest through a hypothetical scenario. Imagine you invest Rs 10,000 in an FD with an annual interest rate of 6.9% for 5 years compounded annually. Using the compound interest formula, we can calculate the future value of your investment:

A = 10,000(1 + 0.069/1)^(1*5)

A = 10,000<(1.069)^5

A ≈ 14,078

With compound interest, your initial investment of Rs 10,000 has grown to approximately Rs 14,078. This growth is due to the power of compound interest, which allows your money to earn interest not only on the principal amount but also on the accumulated interest from previous years. Impressive, isn't it?

Why Choose ICICI Bank for Your FDs?

Now that you understand the potential of compound interest, it's time to explore how ICICI Bank can help you make the most of your FD investments. With a customer-centric approach, ICICI Bank ensures a seamless and hassle-free experience, allowing you to enjoy the benefits of compound interest.

Competitive Interest Rates: ICICI Bank offers some of the best interest rates in the market enabling your money to grow faster. With rates as high as 7.2%, you can maximise your returns and multiply your savings.

Flexible Tenures: Whether you are looking to invest for a short or long term, ICICI Bank provides a range of flexible tenures to suit your needs. From a few days to several years, you can choose the duration that aligns with your financial goals.

Easy Application Process: Opening an FD with ICICI Bank is easy. You can do it online or visit a conveniently located branch, ensuring a hassle-free experience. The user-friendly interface and step-by-step guidance make the application process quick and effortless.

Automatic Renewals: ICICI Bank offers the convenience of automatic renewals allowing you to roll over your FDs seamlessly and maximise your returns. This means you can continue to earn compound interest without interruptions, ensuring your investment's continuous growth.

Additional Benefits: ICICI Bank offers a range of additional benefits to enhance your FD experience. These include features like online account management, periodic interest payouts, and the option to avail a loan against your FD.

Trust and Reliability: ICICI Bank is a trusted name in the banking industry, known for its reliability and commitment to customer satisfaction. With a strong presence in India, you can be assured that your hard-earned money is safe.

Customer Support: ICICI Bank provides excellent customer support to address any queries or concerns you may have regarding your FD. The Bank’s dedicated team of professionals is always ready to assist you and provide personalised solutions.

Final Words 

 Don't miss the opportunity to make your money work for you and start an FD with ICICI Bank today. With ICICI Bank as your trusted financial partner, you can confidently navigate the path to financial success and achieve your dreams. When it comes to your hard-earned money, choosing a reliable and customer-centric bank like ICICI Bank is essential. Take that first step today and unlock the power of compound interest in your FD investments to secure your financial future.

People who read this also read

View All


View All
2 mins Read | 1 Month Ago
How to use ICICI Bank FD Calculator to plan FD investment returns
Fixed Deposits

Scroll to top