RD is a good savings habit that meets your desire for consistent saves for a certain period of time while generating rewards. In a recurring deposit account, you typically save a set amount of money every month for a set period of time. IDFC FIRST Bank provides RD accounts for a variety of time periods ranging from 6 months to 10 years. Your RD account generates interest at different rates depending on how long you keep the RD.
You may save as little as Rs. 2,000 per month, or as much as Rs. 75,000 per month if you can afford it. You can save for as little as 6 months and as much as 10 years or 120 months. Every quarter, your monthly deposits to the recurring deposit account receive interest on the cumulative deposit. IDFC Bank RD provides an interest rate that is relevant to various deposit periods. As you can see, based on your needs, you may save for any length of time. For example, you may use the recurring deposit calculator to compute the total amount, including interest, that you would receive over a given period of time.
What is IDFC First Bank RD Calculator, and How Does it Help You
The IDFC RD calculator 2021 computes the maturity value of your deposit amount based on the specified interest rate and compounded quarterly. The number of recurring deposits, RD interest rates, deposit duration, and interest compounding frequency all contribute to the RDs’ maturity amount at the end of the period. A consumer thinking about getting an RD can use the RD calculator IDFC to:
– Develop an efficient recurring deposit plan investing strategy.
– The time period for which he/she wants to or is able to make the investment.
– Set up a few different interest rates to get the ideal one for you.
– The total amount he or she will get upon maturity or after the tenure of the investment.
How Does the IDFC First Bank RD Calculator Work?
If you select the periodic interest payment option, IDFC Bank will transfer the interest produced at each interval (say, quarterly) to your bank account. The interest rate would remain consistent during the term of the deposit. At maturity, unless the deposit is renewed, the principal amount of the RD is transferred to your bank account. When you pick an IDFC Bank recurring deposit, you will get a credit for the principal as well as the interest earned net of TDS upon maturity. You may calculate the RD maturity amount using the IDFC RD interest rates calculator.
How to Use Groww IDFC First Bank RD Calculator
The following actions must be taken by a user or a client while utilizing the calculator.
Step 1: Enter the amount you want to invest in the RD each month.
Step 2: Next, input the interest rate.
Step 3: Finally, in the third and last step, you can specify the number of years or months you want to carry out the program.
After entering the above-mentioned information, you will be able to view your final earnings in the plan on the calculator. You may see your total RD investment, total interest earned, and maturity value.
Here is the formula used by the digital calculator:
M = R[1+in-1]1-(1+i)-13
They stand for;
- R for the monthly installment
- N for the number of quarters
- M for the value at maturity
- i for the rate of interest
Here’s an example to help illustrate the point of the IDFC bank RD calculator:
If you want to invest Rs. 5000 per month for two years, and the bank provides you a 4.5% interest rate the RD may be computed as follows:
M = 4.5[1+50-1]1-(1+5)-13
The amount is Rs. 1,25,765
Advantages of Using IDFC First Bank RD Calculator
Customers who want to start investing in recurring deposits for a better investment strategy and financial quotient can benefit from using the IDFC First Bank RD calculator. The following are some of the most popular advantages of using the IDFC First Bank RD Calculator.
– It is a free digital tool that may be utilized to get quick returns for an RD investment.
– Groww allows you to access it from anywhere and at any time.
– Without having to wait or do the arithmetic yourself, you can rely on the precise results.
– You do not need to seek assistance in calculating your investment’s maturity value.
IDFC RD Calculator – FAQs
Q1. What is the highest rate of return on a recurring deposit with IDFC First Bank?
IDFC First Bank recurring deposits are eligible for a maximum interest rate of 6.00%
Q2. Are there any additional perks for senior citizens on IDFC First Bank fixed deposits?
Yes, senior citizens receive an additional 0.5% interest rate on their RD at IDFC First Bank
Q3. What are the requirements for opening an RD account?
Indian residents and HUFs (Hindu Undivided Families) are eligible to create an RD account. NRIs can easily create an RD account using their NRO or NRE accounts. Banks also provide an RD plan for minors who are under the care of their parents to oversee their funds
Q4. Is IDFC First Bank allowing partial withdrawals from RD accounts?
IDFC First Bank does not permit partial withdrawals of recurring deposits. However, some banks let you acquire a loan or overdraft by using your RD as security. Post offices, on the other hand, allow for early withdrawals provided you have had an RD account with them for at least a year. The withdrawn amount is considered a loan and must be reimbursed in full.
Premature Closure is permitted, albeit at a cost.
Q5. What happens when an RD account matures?
When your RD account matures, you can instruct the bank to transfer the principal amount as well as the accrued interest component immediately into your linked savings account. After maturity, you can also put your RD funds in fixed deposits.
Q6. How is the interest on IDFC Bank RD paid out?
The interest is paid out at maturity, together with the total of monthly savings. Premature withdrawals before the end of the 30-day period for domestic and NRO accounts result in no interest. Premature withdrawals after 30 days but before 6 months for domestic and NRO accounts earn interest equal to the fixed deposit card rate effective for 30-45 days. Similarly, premature withdrawals from an NRE account before the end of the 365-day period earn no interest.