Central Bank of India RD Calculator

Central Bank of India RD Calculator

The Central Bank of India RD (Recurring Deposit) Calculator helps you estimate the maturity amount of your recurring deposit based on monthly contributions, deposit tenure, and applicable interest rates. It is a valuable tool for individuals aiming to build savings through disciplined monthly deposits.

How the RD Calculator Works

The calculator computes the total maturity amount by applying compound interest on monthly installments, compounded quarterly, as per Indian banking norms. By entering key inputs, users can instantly view their potential returns at the end of the tenure.

Key Inputs

• Monthly Deposit Amount (₹): The fixed amount you plan to deposit each month.
• RD Tenure: The duration of the recurring deposit ranges from 6 months to 10 years.
• Interest Rate (% p.a.): The annual interest rate offered by the Central Bank of India, currently ranging from 6.00% to 7.25% p.a. for the quarter Q1 FY 2024–25, based on deposit tenure and customer type (regular/senior citizen).
• Customer Type: Choose between Regular or Senior Citizens, as senior citizens receive a higher interest rate.

Formula Used

M = P × [(1 + r/n)^nt – 1] / [1 – (1 + r/n)^–1/3]

• M: Maturity amount
• P: Monthly installment
• r: Annual interest rate (in decimal)
• n: Number of compounding periods per year (4 for quarterly)
• t: Time in years

Benefits of Using the RD Calculator

• Instant Results: Get real-time estimates of your returns.
• Better Planning: Plan your RD investments to align with future financial goals.
• Compare Scenarios: Experiment with different deposit amounts and tenures.
• User-Friendly: No manual calculations are required.

Disclaimer : The results given by the above calculator are for illustration purpose only. They are often based on a number of assumptions. The results given are in no way any guarantee of the returns that will be given. Investments in stock markets and securities markets are subject to market risks and other risks. There is no guarantee of the return that will be actually given. Investment in other financial products may also be subject to market risks and other risks. There is no guarantee of the returns that will be given by them. The calculator also does not make any recommendation directly or indirectly. Please consult a registered Financial Advisor before taking any investment decision.