BOI RD Calculator
The BOI Recurring Deposit (RD) calculator allows users to find recurring deposit returns without any hassle. Using the RD calculator can save a lot of time and also help in finding accurate results. By showing accurate results, the calculator helps users plan their finances properly.
An RD is an ideal way to invest small amounts of money every month. In the end, you will get a lump sum amount. The deposit amount, tenure, and interest rate are finalized at the time of opening the RD account. RDs are considered a safe investment option as they are backed by the credibility of banks and financial institutions.
How Does The BOI RD Calculator Work?
The calculator calculates the maturity amount using the following formula.
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 invest ₹27,000 every month in an RD scheme. The scheme is offering you an interest rate of 6.85%. The tenure of the scheme is 2 years. The maturity amount of your RD will be:
M =R[(1+i) n - 1]/1-(1+i) (-1/3)
M = 27,000 x [(1 + 6.85/400) x 2 - 1] / 1 - (1 + 6.85/400) (-⅓)
M = ₹6,96,041
So, if you invest ₹27,000 every month in an RD scheme that is offering you an annual interest rate of 6.85% for 2 years, you would earn a maturity amount of ₹6,96,041. The interest earned by the RD is ₹48,041.
How To Use The BOI RD Calculator?
Here's a step-by-step guide to help you use the RD calculator.
- Open the RD calculator
- Enter the monthly deposit amount
- Mention the rate of interest
- Use the slider to enter the number of months
The calculator will show you the total investment amount, interest earned, and maturity value after filing the required fields.
Example:
Mr. Jagan is planning to deposit ₹34,000 every month for 6 years in an RD scheme. The scheme is earning him an interest rate of 7.4%. The maturity amount of the RD is:
M =R[(1+i) n - 1]/1-(1+i) (-1/3)
M = 34,000 x [(1 + 7.4/400) x 6 - 1] / 1 - (1 + 7.4/400) (-⅓)
M = ₹30,84,372
So, if Mr. Jagan deposits ₹34,000 every month in an RD scheme for 6 years for an annual interest rate of 7.4%, he would earn a maturity amount of ₹30,84,372. He will earn an interest amount of ₹6,36,372.
Benefits Of Using The BOI RD Calculator
Let us see the benefits of using the RD calculator.
- The BOI RD calculator eliminates the need to perform tough calculations by yourself.
- The RD calculator ensures there is no chance of errors.
- The calculator saves a lot of time by performing calculations in a matter of seconds.
- The calculator is very easy to understand and use. Hence, anyone can use the calculator to know the maturity value of their investments.