Canara Bank RD Calculator
The Canara Bank Recurring Deposit (RD) calculator helps you know the exact amount you earn as interest on your RD and your maturity amount. All you need to enter is your monthly investment amount, interest rate, and duration to know the maturity amount.
A recurring deposit is an investment scheme where you deposit a fixed amount every month. At the end of the investment tenure, you will earn the principal amount and the interest amount.
How Does The Canara Bank FD Calculator Work?
The RD calculator uses the below formula to calculate the maturity amount.
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 deposit ₹7,000 every month in an RD scheme. The interest rate of the scheme is 7%. The duration of the scheme is 7 years. Using the calculator formula, we can figure out your maturity amount.
M =R[(1+i) n - 1]/1-(1+i) (-1/3)
M = 7,000 x [(1 + 7/100) x 7 - 1] / 1 - (1 + 7/100) (-⅓)
M = ₹7,59,234
If you deposit ₹7,000 every month in an RD scheme, earning an interest of 7% per annum for 7 years, you will earn a maturity amount of ₹7,59,234.
How To Use The Canara Bank FD Calculator?
The Canara Bank RD calculator is available on the Koshex platform. You only need to provide three variables:
- The investment amount you wish to invest in the RD.
- The interest rate that that bank pays you for the RD.
- The tenure of the RD in which you are planning to hold the money in the RD.
When the details are entered, the calculator will show you the total investment amount, investment returns, and the total maturity value of the investment.
Example:
Ms Smitha is thinking about depositing ₹13,000 every month in an RD scheme. The scheme will earn her an interest rate of 8.5% per annum. The duration of the RD scheme is 6 years. Here's how much she will earn as a maturity amount.
M =R[(1+i) n - 1]/1-(1+i) (-1/3)
M = 13,000 x [(1 + 8.5/100) - 6 - 1] / 1 - (1 + 8.5/100) (-⅓)
M = ₹12,21,745
Ms Smitha will earn a maturity amount of ₹12,21,745 if she deposits ₹13,000 every month in an RD scheme, earning her an interest rate of 8.5% per annum and staying invested for 6 years.
Benefits Of Using The Canara Bank FD Calculator
The advantages of using an RD calculator include:
- The recurring deposit calculator helps you plan the monthly instalments according to your affordability and financial requirements.
- The calculator saves time and energy as manual computations are complex.
- The calculator provides accurate results every time.
- You can use the calculator multiple times and compare the various rates banks and financial institutions offer and choose a suitable place to deposit your money.