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BOB RD Calculator

₹
%
Mn
Invested amount₹ 30,000
Estimated returns₹ 703
Total value₹ 30,703
Invested amountTotal returns

The BOI Recurring Deposit (RD) calculator is a valuable financial tool that is designed to help individuals calculate their investment growth in RDs. The online calculator takes basic information like the investment amount, duration, and interest rate into consideration. Then, the calculator will display the future value of the investment.

An RD is a savings scheme provided by banks and financial institutions. It allows individuals to save a fixed amount of money over a specified duration. The tenure of the RD can vary, usually ranging from 6 months to 10 years. At the end of the tenure, the deposited amount and the accumulated interest are returned to the account holder.

How Does The BOB RD Calculator Work?

The formula used by the calculator to calculate your maturity amount is as follows.

M =R[(1+i) n - 1]/1-(1+i) (-1/3)

Where,

M is the Maturity value of the RD
R is the monthly installment credited in the RD
n is the number of quarters in the total tenure
i is the rate of interest divided by 400

Example:

You are planning to start depositing in an RD scheme and are looking to deposit ₹62,000 every month. You wish to deposit for 1.5 years. The interest rate of the RD scheme is 7.8%. Let's take the calculator formula and use it to calculate the maturity amount.

M =R[(1+i) n - 1]/1-(1+i) (-1/3)
M = 62,000 x [(1 + 7.8/400) x 1.5 - 1] / 1 - (1 + 7.8/400) (-⅓)
M = ₹11,87,042

So, if you deposit ₹62,000 every month in an RD scheme for 1.5 years, earning an interest rate of 7.8%, you would earn a maturity amount of over ₹11.87 lakhs. The interest earned by the deposit scheme is ₹71,042.

How To Use The BOB RD Calculator?

Doing manual calculations can be time-consuming and might result in errors. You can use our calculator to calculate your RD maturity amount in seconds without any hassle.

Follow the steps below to use the RD calculator.

  • Enter your monthly investment amount
  • Key in the interest rate on the RD
  • Use the slide to enter the duration of the investment in months

The calculator will use the RD calculator formula and calculate the future value of your investment and the interest earned.

Example:

Mr. Laxman is looking to start depositing money in an RD scheme. He is planning to deposit ₹23,000 every month. The scheme offers an annual interest rate of 7.1%. He is looking to stay invested for 3.5 years. Here's how much he will make at the end of his investment tenure.

M =R[(1+i) n - 1]/1-(1+i) (-1/3)
M = 23,000 x [(1 + 7.1/400) x 3.5 - 1] / 1 - (1 + 7.1/400) (-⅓)
M = ₹10,98,589

So, if Mr. Laxman deposits ₹23,000 every month in a deposit scheme, offering an annual interest rate of 7.1% for 3.5 years, he would earn a maturity amount of nearly ₹11 lakhs. He would earn an interest of ₹1,32,589.

Benefits Of Using The BOB RD Calculator

We have mentioned some advantages offered by the RD calculator.

  • The BOB RD calculator offers precise estimates of the maturity amount. This helps individuals set realistic savings goals and expectations.
  • With an RD calculator, users can experiment with different variables such as principal, tenure, and interest rates. This can help users explore several saving strategies and outcomes.
  • The calculator eliminates the need for manual calculations, saving time and effort.
  • The calculator is easily accessible online for free and it is a user-friendly tool for everyone.

BOB RD Calculator - FAQs

Can NRIs apply for RD in India?
Yes. NRIs (Non-Resident Indians) can apply for an NRE RD account or an NRO RD account in India.
Do RDs have a nomination facility?
Yes. You can nominate a beneficiary for the RD account in case of unforeseen circumstances.
Do you have to pay taxes on RD?
Yes, once the interest a bank pays you crosses ₹50,000 in a tax year (₹1,00,000 for senior citizens). The bank then deducts 10% TDS (tax deducted at source). If the tax on your total income for the year will be nil, you can give the bank Form 121 (it replaces Forms 15G and 15H) so it does not cut TDS. If you are under 60, you can use it only if the income you declare is also below the tax-free limit.