While deciding on savings accounts, you will find two most suitable options which are fixed and recurring deposits. If you are to choose between these two, then a recurring deposit is regarded as the more beneficial option. One benefit is that it does not have a fixed withdrawal time like a fixed deposit.
That is what makes it popular amongst people. Calculating interest rates and net returns need some financial planning. This planning can be done quickly with the help of the SBI RD calculator. This calculator takes hardly any time to provide you with the interest rate that your deposit will accrue.
How can an SBI RD calculator assist you?
A number of factors are associated with a recurring deposit account. Suppose, an individual chooses a lower rate of interest, then he/she will face issues during premature withdrawals. To save you from such pitfalls, the recurring deposit calculator SBI is known to assist a depositor in getting a clear view of the maturity value of the deposit.
You can call it a safe new way to keep your savings in a recurring account. An important detail to pay heed to is the TDS. The government has enforced a new rule of allowing financial institutions to deduct TDS, i.e., tax deduction at source on RD. It is to inform you that SBI RD interest rates calculator is not designed to provide users with interest rate by deducting TDS as different financial institutions levy it differently. Except for this single issue, this calculator is going to prove beneficial in comparing RD schemes adopted by various financial institutions.
Calculating Interest on SBI RD
The formula that Groww adopts for calculating maturity value has been given below:
In this formula, the variables are represented as follows:
|N||Number of quarters|
|M||Value at maturity|
|i||Rate of interest (quarterly)|
This can be demonstrated with an example.
If you deposit an amount of Rs.2000 each month for 2 years, and the bank offers an interest of 7%, then the RD will be calculated as –
M= 7[1+50-1]1-(1+5)-13, which is equated to Rs. 51, 640.
How to use SBI RD calculator?
Now, it’s time to understand how actually such a valuable tool works. You will be delighted to know about the user-friendly feature of this SBI recurring deposit interest rate calculator.
Just enter the monthly investment amount, interest rate and the total number of years or tenure and the total value at the end of the tenure will be generated within seconds.
Advantages of using SBI RD calculator
Let’s list down some of the most appealing as well as unique features of the RD interest calculator SBI that will prove helpful in case you have recently opened an RD account.
- It is the most convenient tool to enquire on the interest rates on a recurring deposit. Users have just to put the values, and the information regarding interest or principal rate is visible in no time on your SBI RD deposit calculator.
- SBI RD calculator online can be easily assessed wherever you travel.
- Accuracy is guaranteed with the SBI bank RD calculator as it is a trustworthy source.
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- What can I calculate with the assistance of the SBI RD calculator?
You can calculate the interest rate along with the total amount on a recurring amount.
- What is the minimum amount can I deposit in RD account?
You can deposit an amount of Rs. 500 for opening an RD account.
- Are senior citizens enjoy the benefit of gaining higher interest in opening RD?
Yes, the senior citizens get some extra benefits, which are mainly in terms of high interest rates.