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Central Bank of India RD Calculator

The Central Bank of India RD calculator helps to calculate exactly how much your maturity amount will be for the different deposit periods based on the prevailing interest rate and your deposit amount. This can help you choose the right deposit period that will maximize your savings.

The Central Bank of India Recurring Deposit (RD) scheme helps people who have a regular income to save a fixed amount of money, starting at Rs.100, every month for a pre-defined time period. This will earn attractive interest rates so that the principal amount is increased at the time of maturity. Senior citizens get 0.50% additional interest. The rate of interest is the same as for fixed deposits. The period of deposit starts at 6 months and goes on to 5 years.

Central Bank of India Recurring Deposit Interest Rates for General Public

The rate of interest for recurring deposits for Resident Indians for amounts up to Rs.2 crore per month is given in the table below:

Period of Investment for Recurring Deposit Interest Rate (per annum)*
6 months to 270 days 4.30%
271 days to less than 1 year 4.30%
12 months to less than 2 years 4.95%
2 years to less than 3 years 4.95%
3 years to less than 5 years 5.05%

*Interest rates with effect from 17 August 2020

Rates are subject to change at the sole discretion of the bank

Central Bank of India Recurring Deposit Interest Rates for Senior Citizens

The rate of interest for recurring deposit for Resident Indians who are senior citizens for amounts up to Rs.2 crore per month is given in the table below. Senior citizens (60 years to 80 years) are given 0.50% additional interest.

Period of Investment for Recurring Deposit Interest Rate (per annum)*
6 months to 270 days 4.80%
271 days to less than 1 year 4.80%
12 months to less than 2 years 5.45%
2 years to less than 3 years 5.45%
3 years to less than 5 years 5.55%

*Interest rates with effect from 17 August 2020

Rates are subject to change at the sole discretion of the bank

Benefits of Central Bank of India RD Calculator

There are several benefits to using the Central Bank of India RD calculator, such as:

  • Error-free calculations
  • Easily accessible from your mobile, tablet, laptop, or desktop
  • Completely free to use
  • Easy and intuitive to use
  • Instant results
  • Compare the interest rates between different maturity periods

Factors Influencing Central Bank of India RD Interest and Maturity Amount

The rate of interest on your Central Bank of India RD is influenced by a variety of factors some of which are:

  • Depositor’s Age: Anyone above the age of 60 is offered an additional interest rate of up to 0.50% on their deposits compared to the general public.
  • Deposit Maturity Period: The maturity period will determine how much your maturity amount will be as the interest rate is different from one tenure to another.
  • RBI Reverse Repo Rate: The Reserve Bank of India’s reverse repo rate is the rate at which the RBI takes loans from commercial banks. This is directly linked with the RD interest rate.

Calculation of Compound Interest on Central Bank of India Recurring Deposit

Central Bank of India recurring deposits accumulates interest which is on a compounding basis every quarter. This means that when you open an RD account on 1 May, the interest will compound on 1 August, 1 November, 1 February, and 1 May. This cycle will repeat till the maturity period is reached. The formula for calculating the compounding interest is given below:

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

Where:

M = Maturity value

R = Deposit amount

n = Maturity period (in quarters)

i = Rate of interest divided by (4×100).

The Central Bank of India online calculator is based on this formula. So, using the calculator, you can find out how much you will earn. To take the example given below:

If you open a Central Bank of India RD account with an initial deposit of Rs.1,000 for a period of 1 year, the interest rate is 4.30% p.a., so your maturity amount at the end of 1 year will be Rs.12,283.

However, if you use the Central Bank of India RD online calculator instead, you will get an error-free calculation that is quicker and error-free when compared to a manual calculation.

Central Bank of India RD Calculator FAQs

  1. How many times can I use the RD calculator of Central Bank for free?
  2. You can use the RD calculator of Central Bank completely free of charge any number of times a day.

  3. Will the Central Bank RD calculator be able to show me how much tax I will have to pay on my RD on maturity?
  4. You only have to pay tax on your RD if the interest component exceeds Rs.40,000 (Rs.50,000 for senior citizens). There is no tax if the interest is less than this amount. The RD calculator cannot be used to calculator tax. It will only tell you what the maturity amount will be, based on the interest rate and deposit tenure, so that you can take the best decision for your RD account.

  5. Does the RD calculator already have the interest rates on it?
  6. No, the RD calculator does not have the interest rates given. You will have to provide the interest rates based on the information provided by the bank or that which is given for your reference here on this page.

  7. Is the RD calculator of Central Bank of India a mobile app?
  8. No, the Central Bank of India’s RD calculator is not a mobile app. It is an online tool on the bank’s official website.

  9. What is the difference between the Central Bank RD calculator and a digital calculator?
  10. If you are using any other calculator, you will have to know and input the formula that is used to calculate the maturity amount of an RD. But if you use the Central Bank RD calculator, all you have to do is enter the required information in the relevant fields (such as the deposit amount, tenure, interest rate, etc.) and the calculator will instantly generate the result on the same page.

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