In this article

**About BOI Fixed Deposit**

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 exact profitability from 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.

**Benefits of BOI FD Calculator**

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 –

- These calculators are easy to use and time-efficient, with FD calculations conducted in mere seconds.
- Manual calculations are subject to errors or mistakes, which can be costly for the investor in question. Investors can eliminate such risks with the use of a Bank of India FD calculator, as the tool always relays accurate results.
- Such calculators allow free adjustment of the various parameters to achieve desired results. However, in manual calculations, even a small change in the figures forces the lender to start the calculations afresh.

**Understanding Bank of India FD Rates**

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 |

7-45 days | 4% | 4.5% |

46-179 days | 5% | 5.5% |

180-364 days | 5.5% | 6% |

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.

**FD Calculation Formula and Procedure**

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**

Here,

- A stands for the total maturity amount,
- P refers to the starting investment,
- ‘r’ is the rate of interest divided by 100,
- ‘t’ signifies the tenure for investment, and
- ‘n’ is the frequency of interest payout in a year.

**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.

**How do Various Factors Affect FD Interest Earnings?**

As stated previously, the Bank of India fixed deposit calculator relies on four factors to reach the ROI outcome. These are –

**Sum invested –**This is the principal amount on which the entire calculation relies. High-valued investments tend to draw higher returns when compared to smaller sums. On the calculator, an investor can change the principal investment sum to higher or lower returns effectively.

**Investment term –**FDs are beneficial, both for long-term and short-term gains. Nevertheless, those opting for a significantly longer tenure can expect increased interest earnings. Bank of India also offers the best interest rates to long-term investors, as is evident from the chart above.

**Interest payout frequency –**When picking fixed deposits, beneficiaries need to choose an interest calculation frequency. This can be monthly, quarterly, half-yearly, or annually. Choosing frequent interest compounding methods can lead to slightly increased gains.

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.

**FAQs**

**Who is eligible for Bank of India FDs?**

Hindu Undivided Family, Indian residents, and business firms are eligible to open a fixed deposit account and invest through it.

**What is the term range for Bank of India FDs?**

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.

**What is the additional interest available to senior citizen FD investors?**

Bank of India offers 0.5% extra interest to senior citizen FD investors per year. Such individuals can, thus, earn higher returns.