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IOB RD Calculator

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

The IOB Recurring Deposit (RD) calculator is an investment tool that allows investors to make regular monthly payments and save money for the long term. Investors can choose the tenure of the deposit and the monthly payment they wish to make according to their convenience.

A recurring deposit is a service offered by many banks where people can make regular deposits and earn decent returns on their investments. The interest rates of an RD are calculated on a quarterly compounded basis. The interest rates offered by an RD are similar to those offered by fixed deposits.

How Does The IOB RD Calculator Work?

The formula to calculate the maturity amount for an RD 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 invest ₹30,000 every month in an RD. The tenure of the RD is 7 years and the interest rate is 6.5% per annum. Here's how much you will get at the end of your tenure.

M =R[(1+i) n - 1]/1-(1+i) (-1/3)
M = 30,000 x [(1 + 6.5/400) x 7 - 1] / 1 - (1 + 6.5/400) (-⅓)
M = ₹31,93,410

So, if you invest ₹30,000 every month in an RD, earning an annual interest rate of 6.5% for 7 years, you would earn a maturity amount of nearly ₹32 lakhs. The interest earned by your RD investment will be ₹6,73,410.

How To Use The IOB RD Calculator?

The RD calculator is pretty simple to use. Follow the below steps to calculate your maturity amount efficiently.

  • Enter the investment amount you wish to invest in RD every month
  • Type in the tenure of the RD
  • Mention the interest rate of the RD

Once you have entered all the details, the calculator will show the maturity amount and interest earned instantly.

Example:

Mr. Bharathi is looking to invest ₹8,000 every month in an RD. The interest rate offered by the RD is 7.2% per annum. The tenure of the RD is 5 years. Using the above formula, let's calculate his maturity amount.

M =R[(1+i) n - 1]/1-(1+i) (-1/3)
M = 8,000 x [(1 + 7.2/400) x 5 - 1] / 1 - (1 + 7.2/400) (-⅓)
M = ₹5,78,510

So, if Mr. Bharathi invests ₹8,000 every month in an RD, offering an interest rate of 7.2% per annum for a tenure of 5 months, he would earn a maturity amount of over ₹5.7 lakhs. He would earn an interest amount of ₹98,510.

Benefits Of IOB RD Calculator

There are several benefits of using an RD calculator. We have mentioned a few of them below:

  • The IOB RD calculator is easy to use. All you need to do is enter the monthly investment amount, the tenure of the RD, and the interest rate offered by the RD. The calculator will display the results instantly.
  • The RD calculator provides accurate results every time. So you don't have to worry about any errors.
  • The calculator saves a lot of time by completing complicated calculations in a few seconds.
  • The calculator helps you see how much your investments can make you in the future. This can help you plan your finances.

IOB RD Calculator - FAQs

Is an RD interest rate fixed?
Yes. The RD interest rate is pre-fixed. It is decided at the time of opening an RD and it depends on the tenure and the investment amount.
Is the RD interest taxable?
Yes. The RD interest is taxable.
Is RD better than an FD?
Both RD and FD are good investment products. If you have surplus funds lying in your bank account, you can consider an FD. If you want to start saving a small amount every month, you can consider an RD.