Allahabad Bank RD Calculator: Smart Investment Planning Tool
Allahabad Bank offers three major Recurring Deposit Schemes; the normal RD account, all bank money Plus account (Variable RD account) and the monthly Plus scheme. Normal RD account has the standard range of features and benefits to the depositor.
Table of Contents
If you open a recurring deposit (RD) account, you need to deposit a pre specified amount at a periodic interval and its tenure is available from at least six months to ten years along with monthly instalments of 12, 24, 36, 48, 60, 72, 84, 96, 108, and 120 months.
The RD calculator facility will easily help you in calculating the interest amount earned and the amount of maturity. The output provided by the calculator provides the lump sum idea of the maturity values. However, only your bank will provide the exact amount that you are going to get as a return.
Understanding Allahabad Bank RD Interest Rates
- Monthly Amount - You have to enter a specific amount which you are willing to deposit on a monthly basis. For instance, if you wish to invest Rs.3,000, then you have to enter Rs.3,000 on the monthly amount space.
- Duration - This section denotes term, tenure, or duration of your recurring deposit. It should be for specific months. Usually, RD tenure ranges between six months to 120 months.
- Interest Rate - It is rate of interest provided by Allahabad Bank on the recurring deposit. The interest rate varies on the basis of tenure that you have selected.
Output of RD Interest Rate Calculator
Once you have entered all the above mentioned components in the given space, you need to click on the ‘Press Calculate’ button to get the following output.
- Deposit Amount - This section will display the amount you have deposited in the entire RD tenure.
- Maturity Amount - This section will display the maturity value that you will get on your RD after the completion of the tenure. The maturity value based on the amount deposited, interest rate on RD, and its tenure.
- Interest Earned - It displays the overall interest earned by you on your recurring deposit. Interest earned is basically the difference between amount deposited and the maturity value.
Benefits of Recurring Deposit
The following are the benefits of a recurring deposit:
- Recurring deposits helps the accountholders to earn lucrative interest even by making small amount of investment every month.
- RDs helps the customers in developing a habit of savings at regular intervals and inspire them to invest more for a secure financial future.
- One of the biggest advantages of a recurring deposit is the loan facility provided by the bank against recurring deposit account. Through the help of this facility customers can get a loan facility against RD where the bank will provide 95% of the RD amount as a loan.
FAQs on Allahabad Bank RD Calculator
- What is the tenure of a recurring deposit account?
In general, banks provide RDs with tenure ranging from six months to 120 months.
- What is the maximum deposit on RD that I should deposit every month?
There is set limit on recurring deposit amount that you need to deposit every month. It is advisable to choose a specific amount based on your financial goals along with the availability of funds.
- Can I deposit different amount as monthly installments in my RD account?
No, you cannot deposit different amount as monthly installments on your RD account. However, there are a few banks which provide Flexi RD that helps customers to deposit the amount on their choice at any point in the term.
- How the maturity amount on RD is calculated?
The maturity amount is derived by taking deposit amount, duration, and interest rate on the recurring deposit.
- Will TDS be deducted on interest earned on RD?
If the interest received on recurring deposit is up to Rs.10,000, no Tax Deducted at Source (TDS) will be made. However, if the interest earned is more than Rs.10,000, then 10% TDS will be made. In case your income is non taxable, you can submit Form 15G (for non senior citizen) or Form 15H (for senior citizen) which will help in avoiding TDS deduction.
- How much tax should I have to pay on interest earned on recurring deposit?
Tax that is needed to be paid depends on the tax slab under which you fall. The tax may vary from person to person based on their total income along with the RD interest earned.
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