Bank of India is a leading public sector bank, offering a host of financial services to its clients. A fixed deposit account is one of the facilities on offer from BOI.
Fixed deposits are one of the safest forms of investment options, which offer investors guaranteed returns. Investing in FDs does not expose depositors to the risk of market fluctuations. This makes them a popular choice for most individuals with low-risk appetite.
Furthermore, investors can easily gauge the interest they can earn on the amount deposited right at the onset of their investment. This effectively aids them to calculate their ROI before making the deposit, enabling them to make sound financial decisions. In this regard, online calculators offer the fastest and most accurate way to assess the exact profitability of such deposits. Thus, one can effectively use the BOI FD calculator to understand profitability from fixed deposit investments before parking their excess funds with the bank.
To use a Bank of India fixed deposit rates calculator, one needs to input certain details regarding their investments. The invested sum, rate of interest, term, and interest payout frequency are some of these parameters. After doing so, this useful tool highlights the returns that the investor can expect from his/her FD.
Even though calculating FD returns manually is possible, the process can be cumbersome and leave room for inaccuracies. In this regard, opting to use FD calculators has several benefits, such as –
Before proceeding to learn about the formulae and process used to determine ROI on FDs, one should check out the table below. It lists the various maturity term options and interest rates for BOI FD customers.
|Investment term||Rates for non-senior citizens||Rates for senior citizens|
|1 year-1 year and 364 days||6%||6.5%|
|2 years-10 years||5.9%||6.4%|
It is evident that senior citizen FD investors are eligible for an extra 0.5% annual interest earnings. Further, in most cases, interest tends to increase with longer terms of FD investments. A BOI FD calculator can help an individual assess exactly how the tenure affects profitability.
The online calculator tool uses the same formula that individuals use when calculating FD earnings manually. This is given by –
A = P(1+r/n)^n x t
Example of BOI FD Calculation
63-year-old Mr Kapoor decides to invest Rs.10 lakh in a BOI FD for 5 years. He chooses yearly interest payments for this FD. Now, referring to the above table, one can understand that he is eligible for a 6.4% interest on his funds.
Here, P = Rs.10 lakh
r = 6.4
t = 5
n = 1 year
Therefore, according to the FD calculation formula, his maturity amount would be –
A = 10,00,000(1+0.064/1)^1 x 5
A = Rs.13,63,666
Return on investment for Mr Kapoor would be equal to
I = A – P
i.e, Rs. (13,63,666 – 10,00,000).
Thus, the interest earned by Mr. Kapoor on his FD deposit is Rs.3,63,666.
As stated previously, the Bank of India fixed deposit calculator relies on four factors to reach the ROI outcome. These are –
Undoubtedly, interest rates play the most significant role in FD calculations on a BOI fixed deposit calculator. One should always be on the lookout for higher rates, which can significantly boost ROI on FDs.
Bank of India Fixed Deposit Calculator – FAQs
Hindu Undivided Family, Indian residents, and business firms are eligible to open a fixed deposit account and invest through it.
Bank of India FD terms can range between 7 days and 10 years. Investors are free to pick any tenure that suits their financial needs.
Bank of India offers 0.5% extra interest to senior citizen FD investors per year. Such individuals can, thus, earn higher returns.
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