Monthly investment

₹

Rate of interest (p.a)

%

Time period

Years

Invested amount | ₹ |

Est. returns | ₹ |

Total value | ₹ |

Total investment

Total interest

RD ALTERNATIVE

BOB, short for Bank of Baroda is one of the leading public sector Banking and financial services companies in India. Bank of Baroda offers multiple recurring deposit options to its customers to park their surplus savings for a fixed tenure with attractive rates. To open an RD in BOB, you need to make a deposit once into the RD account at the time of opening the account followed by monthly investments of the same amount.

Tenure |
General Citizen Rates |
Senior Citizen rates |

180 days | 3.70% | 4.20% |

181 days – 270 days | 4.30% | 4.80% |

271 days – 364 days | 4.40% | 4.90% |

1 year | 4.90% | 5.40% |

1 year 1 day – 400 days | 5.00% | 5.50% |

401 days – 3 years | 5.00% | 5.50% |

3 years 1 day – 5 years | 5.25% | 5.75% |

5 years 1 day – 10 years | 5.25% | 5.75% |

Read more about Bank of Baroda RD Rates

All you have to is follow these simple steps given here to calculate the maturity value calculated for you:

- Enter the monthly investment amount in the first box through the up/down pointers. You can also do it manually or by simply adjusting the slider
- Next, enter the number of years. Again, you can either Use the pointers or the slider to adjust
- Lastly, provide the rate of interest offered by the bank on your tenure

The compound interest on a Recurring Deposit amount is only added after the first quarter. Talking about quarters, Financial Quarters in a year are as follows –

- April to June – Quarter 1
- July to September – Quarter 2
- October to December – Quarter 3
- January to March – Quarter 4

After every quarter, the Compounding occurs; hence until then, a simple interest calculation will be applicable. The compound interest formula used for calculating RD maturity amount is:

**M = R x {(1 + n) x n – 1} / 1- (1 + i) ****(-1/3)**

where,

- M stands for Maturity value
- R stands for Monthly Installment
- i stands for rate of interest divided by 4
- n stands for the tenure (in quarters)

With the help of the above formula, in case a depositor invests Rs.6000 in the month of January and the tenure is 2 years; then by using the simple and compound interest formula provided, he/she will have around Rs. 154,900 as the maturity amount at the end of the year if we consider the rate of interest at 7%.

While deciding the rate of interest for the depositor, certain factors are taken into consideration, based on which the interest rates are evaluated. Some key factors are listed below:

**Tenure**

Tenure is the duration for which you invest the money in a recurring deposit. The interest rate depends on various factors and tenure is one of the most important ones. Your RD interest rate varies across all the tenure options.

**Applicant’s Age**

Banks and other NBFCs provide a higher rate of interest to senior citizens. The rates may range from 0.50% to 0.75% additional interest over the regular deposit rates for general citizens. However, the minimum age criteria for senior citizens may vary as per the provider.

**Repo rate**

The repo rate cut depends on a lower inflation rate as well as slow development in the economy. On the off chance that there is a cut in repo rate by the RBI, banks are probably going to decrease the loan fee on a wide range of deposits including RDs.

**Reverse Repo rate**

RBI’s reverse repo rate is directly linked with the interest rate on BOB RDs. It is defined as the rate at which the central bank of a country (RBI in case of India) avails overnight loans from commercial banks. Therefore, a high reverse repo rate would imply a high-interest rate on RD and vice versa.

**Benefits of Using BOB RD Calculator**

- Saves a lot of time as there is no need to remember the formulas and do the complicated calculations
- Can be used multiple times to calculate the maturity value by changing any of the parameters
- Instant results which can help you decide the desired tenure for your RD at the time of account opening

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