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Central Bank Of India RD Calculator

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

The Central Bank of India Recurring Deposit (RD) calculator is an online tool that allows investors to know the exact amount their deposits will accrue after the relevant period. The calculator gives accurate results and eliminates the hassle of computing the returns manually.

A Recurring Deposit, commonly known as RD, is a unique term deposit that is offered by Indian banks. It is an investment instrument that allows people to make regular deposits and earn good returns on the investment. The tenure of most RDs ranges from 6 months to 10 years. The interest rate of the RD is predetermined and doesn't change during the tenure. On maturity, the individual will be paid a lumpsum amount, which includes the regular investments and the interest earned.

How Does The Central Bank Of India RD Calculator Work?

The RD calculator uses the below formula to calculate your maturity amount.

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 invest ₹10,000 every month in an RD. The deposit offers an interest rate of 8% per annum. The tenure of the RD is 4 years. By putting the above values in the calculator formula, we get:

M =R[(1+i) n - 1]/1-(1+i) (-1/3)
M = 10,000 x [(1 + 8/400) x 4 - 1] / 1 - (1 + 8/400) (-1/3)
M = ₹5,66,618

So, if you put ₹10,000 in an RD every month, earning an interest rate of 8% per annum for a tenure of 4 years, you would earn a total maturity amount of over ₹5.6 lakhs. The interest earned by your RD will be ₹86,618.

How To Use The Central Bank Of India RD Calculator?

The RD calculator is straightforward to use and does not require any expertise. Here is a step-by-step guide for using the RD calculator.

  • The first step is to enter the monthly amount you would be putting in the recurring deposit.
  • The next step is to type in the tenure of the RD.
  • The final step is to key in the expected rate of return.

The total value of the investment and the interest earned by your RD will be displayed within seconds.

Example:

Ms. Anita is planning to invest ₹25000 every month in an RD, which will earn her an interest rate of 7% per annum. The tenure of the RD is 3 years. We can calculate her maturity amount using the calculator formula.

M =R[(1+i) n - 1]/1-(1+i) (-1/3)
M = 25,000 x [(1 + 7/400) x 3 - 1] / 1 - (1 + 7/400) (-⅓)
M = ₹10,03,432

So, if Anita invests ₹25,000 every month in an RD, earning an interest rate of 7% per annum for a tenure of 3 years, she will earn a maturity amount of over ₹10 lakhs. The interest earned by the RD will be over ₹1 lakh.

Benefits Of Using The Central Bank Of India RD Calculator

An RD calculator has a lot of benefits for investors. Here are a few of them.

  • The Central Bank of India RD calculator saves a lot of time by performing the calculations in seconds.
  • The RD calculator is always accurate. There is no chance of any mistakes if you input every variable correctly.
  • The calculator is free to use. You can enter one or more of the variables in as many variations as you want.

Central Bank Of India RD Calculator - FAQs

What is the minimum amount to start an RD account?
The minimum amount varies from one financial institution to another. Usually, you can start an RD account with an amount as low as ₹500.
What is RD's range of tenure?
Generally, RD tenure begins at 6 months and stretches up to 10 years.
Is TDS applicable 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).