RBL Bank is one of the premier financial institutions in India, which offers a plethora of financial products to its customers. Among them is a fixed deposit scheme with attractive interest rates, which can make for a lucrative investment opportunity for many.
This safe investment avenue is ideal for consumers looking to expand their wealth with minimal risks. The RBL FD calculator is a digital tool that can be instrumental in helping individuals gauge the maximum profit that can be earned from this investment.
To calculate profitability from their RBL Bank fixed deposits, one needs to enter just a few details into the calculator. These details include the investment sum, interest rates and tenure for the investment. Additionally, one also needs to choose the frequency of interest computation to know his/her ROI.
In this article
Benefits of the RBL Bank FD Calculator
Such a calculator is not only useful to acquire an estimation of interest-earnings. Its additional benefits include the following –
- Convenient interface, which is suitable for use even for amateur investors.
- Calculations are almost instantaneous, thereby saving crucial time for potential investors.
- Users can rest assured knowing that the computations through an RBL FD calculator are always accurate.
- An investor can freely adjust the various parameters to determine the perfect combination to earn the highest returns.
However, to use a calculator, an individual will first need to know the exact interest rates on offer from RBL Bank. Additionally, the tenure for investments is also another important criterion that one should figure out.
RBL Bank FD Investment Terms and Rates
One can refer to the following table to acquire extensive knowledge regarding rates and terms on offer from RBL Bank –
|Investment term||Normal FD rates||FD rates for senior citizens|
|1 year-1 year and 364 days||7.2%||7.7%|
|2 years-2 years and 364 days||7.25%||7.75%|
|3 years-4 years and 364 days||7%||7.5%|
|5 years-9 years and 364 days||7.15%||7.65%|
|10 years-20 years||6.65%||7.15%|
However, simply knowing these figures is not enough. An investor should also devote time to understand the formula for FD profitability calculation. The equation below is used in manual calculations, as well as by the RBL Bank FD calculator.
FD Calculation Formula and Procedure
Whether calculating manually or through FD calculator RBL, one must know the formula to arrive at the accurate results. This formula is given by –
A = P (1+r/n) ^ n x t
- A refers to the maturity amount
- P signifies the initial investment
- n denotes the number of interest payouts in a year
- r denotes the interest rate in decimals
- t is the tenure for investments
It can be tricky to understand and remember this formula. One can assess how this equation works by referring to the example given below.
Example of FD Calculation
Mr. Verma is a 42-year old entrepreneur, looking to invest Rs.7 lakh through an RBL Bank FD. He picks a term of 2 years and opts for quarterly interest payout. The table given above suggests that Mr. Verma will receive an interest of 7.25% per year on the invested sum. Based on this, one can determine the maturity amount from the investment using the same formula.
Here, P = Rs.7,00,000
r = 7.25/100 or 0.0725
t = 2
n = 4
Hence, A = Rs. [7,00,000 (1+0.0725/4) ^ 4 x 2] = Rs.8,08,178
The return on investment is equal to A-P, which in this case comes to Rs.1,08,178.
Although accurate, such lengthy calculations can be time-consuming and difficult. This is why one can rely on the FD calculator RBL to determine ROI, instead.
How To Use RBL Bank FD Calculator?
In the respective fields, just enter the value of the investment amount, select the tenure or maturity period and the rate of interest. The amount you would receive upon maturity will be displayed instantaneously.
How do Different Factors Influence FD Earnings?
The online tool relies on four major parameters to arrive at a result in FD calculations. It is vital to know how each aspect affects outcomes in the RBL Bank FD rates calculator to achieve maximum returns.
- Principal investment –The amount that is deposited in the FD account plays a significant role in determining overall returns. Generally, individuals who deposit increased sums will earn higher interest than others will. Thus, if you are dissatisfied with the current return projection on the RBL Bank fixed deposit calculator, ensure you increase the investment amount.
- Tenure – Banks follow a strict protocol where FD investment tenure determines the interest rate that an investor is eligible to receive. In most cases, picking longer tenure results in increased interest-earnings on the principal sum. On the other hand, short-term investments can severely restrict your ability to earn interest.
- Interest rates – Unsurprisingly, the interest rate is the most important factor when determining FD profitability. One should look for high rates to maximise gains. Since the rate of interest for FDs are associated with the lock-in term, increasing investment tenure helps improve interest rates, as well.
- Compounding interest frequency – The frequency of interest payout and computation can also slightly influence returns. Increased instances of compounding interest will net higher gains for an investor and vice versa.
Lastly, the age of an investor may also come into play when determining profitability from an FD. Most banks today offer increased interest rates to senior citizens on their FDs when compared to people aged below 60.
Therefore, the use of such a calculator is essential for potential FD investors. It enables them to make informed decisions for better financial health.
- Can I reduce the tenure of my fixed deposit midway through the term?
No. You cannot reduce or increase the term after the investment tenure begins. However, in case of financial emergencies, you can withdraw the deposited sum before its term ends.
- What is the interest rate for loans against fixed deposits?
Loan against FD facility is available to RBL Bank customers. The bank charges interest rates between 6% and 8.2% per annum for such forms of credit.
- How much loan can I avail against my FD?
RBL Bank offers an LTV of around 90% for loans against FDs. This means that if your FD is worth Rs.1 lakh, you can safely avail of a loan of up to Rs.90,000 against it.