Bank of India is one of the leading commercial banks in India with its headquarters in Mumbai. BOI offers multiple recurring deposit options to its customers with attractive rates ranging up to 5.05%. One can calculate the maturity value of their RD by using the Bank of India RD calculator online. Recurring deposits are preferred by a lot of people especially for the factor that you can park your savings on a monthly basis and get a good return on the investment made.
Read more about BOI Recurring Deposit Rates
All you have to is follow these simple steps given here to calculate the maturity value calculated for you:
That’s all! You will be able to check the maturity value computed by the RD calculator of Bank of India.
The interest on Bank of India RD is compounded quarterly; given-below is the formula to calculate maturity amount
Compound interest helps your money to grow quickly as you are not only getting interest on your initial investment but also on top of interest!
While deciding the rate of interest for the depositor, certain factors are considered. Some of them are:-
The time period you choose for your recurring deposit is called the tenure of the RD. Your RD interest rate varies across all the tenure options.
The applicant’s age also plays a role while deciding the rate. Banks and other NBFCs usually provide a higher rate of interest to senior citizens. This is an additional 0.50% to 0.75% interest over the regular deposit rates provided to general citizens. However, the minimum age criteria for senior citizens may vary as per the provider.
Current Economic Scenario
Banks and other financial institutions that offer recurring deposits schemes keep on changing their interest rates with reference to the economic conditions updates. Owing to various reasons like, change in repo rate by the RBI, inflation and so on, these rates are decided. Hence, the prevailing conditions do form a major element in evaluating the RD rates.
The Reserve Bank of India’s repo rate cut can bring joy to the borrowers but may well reduce fixed income earners to tears in the future as it hits those living off income from recurring deposits when the rates on these go down.