Monthly investment

₹

Rate of interest (p.a)

%

Time period

Years

Invested amount | ₹ |

Est. returns | ₹ |

Total value | ₹ |

Total investment

Total interest

RD ALTERNATIVE

UCO Bank is a state-owned commercial bank headquartered in Kolkata. It was established in 1943 in Calcutta and was formerly known as the Union Commercial Bank. The bank offers a diverse range of personal and corporate banking services. UCO Bank hosts a wide assortment of deposit schemes, and its UCO Sowbhagya Recurring Deposit Scheme offers lucrative savings options to depositors. Individuals can use a UCO Bank RD calculator to estimate the earnings from their deposits before opting for the scheme.

The UCO Bank RD calculator is an online calculator that individuals can use free of charge. It is a simple tool that facilitates the calculation of maturity value against a specific set of the deposit amount, rate of interest, and maturity period.

Individuals can open an RD account with UCO Bank either singly or jointly. It can also be opened by entities like clubs, educational institutes, partnership firms, and joint-stock companies. Moreover, with a UCO Bank RD scheme, individuals can earn interest as a normal RD while enjoying the flexibility of depositing varying sums of money every month.

Read more about UCO Bank RD Interest Rates

Interest on the balance amount in a UCO Bank RD account is compounded quarterly. For instance, if an individual makes his/her first deposit on 1st April, interest will be thus compounded on 1st July, 1st October, 1st January and 1st April throughout the maturity period. Therefore, the interest rate is divided by 4 [four quarters] when calculating the maturity value.

The UCO RD calculator works on the RD formula that is used industry-wide for calculation of the interest amount and maturity value for recurring deposits. The formula is presented below:

**M = R x {(1 + n) x n – 1} / 1- (1 + i) ****(-1/3)**

In this formula, M represents the maturity value, n denotes the number of quarters (maturity period), R stands for the deposit amount, and i represents the rate of interest divided by (4×100).

*Example of RD calculation:*

*Ravi Gaitonde, a local Mumbai merchant aged 62 years, opens a recurring deposit account with UCO. He decides to deposit Rs.2000 per month for 5 years, attracting a rate of interest of 6.2%. *

*When replaced by the formula, R = Rs.2000, n = 20 quarters, and i = 0.0155 [0.062 / 4]*

Therefore, M = Rs. [2000 x {(1 + 20) x 20 – 1} / 1 – (1 + 0.0155) (-1/3)

Or, M = Rs.140,865.43

Ergo, Ravi Gaitonde will receive Rs.140865 on maturity upon depositing Rs.2000 per month for 60 months in a UCO Bank RD account.

However, when calculating the maturity value manually, it can be susceptible to miscalculation. Therefore, one can choose to use the UCO Bank Recurring Deposit calculator.

The variables that affect the interest rates of UCO Bank recurring deposits are –

**Reverse repo rate**

The reverse repo rate is an instrument at the disposal of the Reserve Bank of India. The apex bank borrows overnight loans from commercial banks, like UCO Bank, at the reverse repo rate. This rate affects the liquidity of a bank. If the reverse repo rate is high, banks will receive more as interest from the RBI for their advances. Therefore, a higher reverse repo rate increases the interest rate on term deposits like RD.

**Maturity period**

The maturity period that is chosen by a depositor for their UCO Bank RD also influences its interest rate. As listed in the table above, the interest rate first increases, then primes at 5.75% when the maturity period is 1 year and then decreases when the maturity period exceeds 3 years.

**Age of the depositor**

Senior citizens, i.e. depositors above the age of 60 years, are liable to earn an additional 0.25% – 0.5% interest rate on their deposits, if below Rs.2 Crore.

The benefits of using the UCO Bank RD calculator are –

- It is simple to use.
- Depositors can compare different variables before making a decision.
- It displays accurate results and leaves no room for errors.

Therefore, individuals can use the UCO Bank RD calculator to maximise their benefits from depositing in the UCO Bank RD scheme.

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