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 6.70%. 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.
In this article
BOI RD Rates
|Tenure||General Rates||Senior Citizen Rates|
|180 days – 269 days||6.25%||6.75%|
|270 days – 364 days||6.25%||6.75%|
|1 year – 1 year 364 days||6.65%||7.15%|
|2 years – 2 years 364 days||6.70%||7.20%|
|3 years – 4 years 364 days||6.50%||7.00%|
|5 years – 7 years 364 days||6.50%||7.00%|
|8 years – 10 years||6.35%||6.85%|
Read more about BOI Recurring Deposit Rates
How to Calculate the Maturity value using Bank of India RD Calculator?
All you have to is follow these simple steps given here to calculate the maturity value calculated for you:
- In the monthly investment field, provide the amount that you have invested
- In the next box, enter the number of years.
- Lastly, provide the rate of interest offered by the bank on your tenure
That’s all! You will be able to check the maturity value computed by the RD calculator of Bank of India.
How is Interest Rate calculated on Bank of India Recurring Deposit?
The interest on Bank of India RD is compounded quarterly; given-below is the formula to calculate maturity amount
- 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)
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!
Factors Affecting RD Earnings
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.
Benefits of Using Bank of India RD Calculator
- No need to remember the formulas and do the complicated calculations and hence saves you a lot of
- Can be used multiple times given that you put all the values exactly
- Instant results that can help you decide which scheme to choose
Bank of India RD Rates Calculator – FAQs
Ques. Does the recurring deposit calculator of Bank of India show accurate results?
Ans. Yes, it has been programmed in such a way that it provides you with accurate results. However, it also depends on the values you enter, so make sure you enter the values correctly.
Ques. In the case of RDs, when is simple interest calculated?
Ans. If you are opening a recurring deposit in the middle of an ongoing financial quarter, for example in the month of May, the deposited amount will earn simple interest until the June end. Following that, the interest will be compounded as the new quarter starts.
Ques. Does inflation always affect the interest rate on RDs?
Ans. No, moderate inflation does not affect investment rates up to that extent but high inflation can bring the RD rates down.