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Indian Bank RD Calculator

You can deposit any surplus income in a recurring deposi account with Indian Bank. Over time, you will earn interest on the amount you have deposited. You can easily calculate your total earnings from the recurring deposit by using the Indian Bank RD calculator.

The calculator is available online and this tool can be used for calculating your total returns from recurring deposits. You should note that the Indian Bank RD comes in two different kinds: Normal RD Scheme and Variable RD Scheme.

The Normal RD Scheme is where you have to invest a fixed amount every month into the deposit. This scheme also offers a flexibility on the lock-in period. The Variable RD Scheme is one where you can deposit varying amounts every month. In the case of a Variable RD Scheme, the maturity period is fixed.

Indian Bank RD Interest Rates

The interest rates on recurring deposits offered by Indian Bank (effective 1 May 2020) are as follows:

Maturity period Interest rate (deposits less than Rs.2 crore) Interest rate (deposits over Rs.2 crore but less than Rs.5 crore)
6 months (180 days) 4.75% 3.75%
181 days to 270 days and less (9 months) 5.25% 4.75%
270 days to 365 days and less (1 year) 5.25% 4.75%
1 year 5.75% 5%
Over 1 year and up to 2 years 5.65% 5%
2 years to 3 years 5.65% 5%
3 years to 5 years 5.65% 5%
5 years 5.65% 5%
More than 5 years 5.65% 5%

Factors Which Affect Indian Bank RD Interest Earnings

There are the four major factors that affect the interest rates of recurring deposits with the Indian Bank:

Tenure The tenure or duration for which your deposits have been locked will influence the interest rate of your RD. Your interest rate will increase until 1 year to 5.75%. It will then reduce to 5.65% and will remain at this figure for the other maturity periods.
Reverse Repo Rate Reverse repo rate is the interest rate at which the RBI avails their overnight loans from financial institutions. The changes in the rate will influence the interest rate for the bank’s recurring deposits. An increase in the reverse repo rate will increase the Indian Bank RD interest rates.
Deposit Amount The interest rate on your recurring deposit will vary depending on the amount of you have deposited. The interest rate for all deposits over Rs.2 crore will be lower than deposits below Rs.2 crore.
Age of Applicant If you are a senior citizen, then you will be eligible to get an additional interest rate of 0.5% on your recurring deposit.

How can you Calculate the Compound Interest Amount on Your Indian Bank Recurring Deposit?

Indian Bank calculates the interest on your recurring deposit on a quarterly basis. If you open an RD account with the bank on 15 April 2020, your interest amount will be compounded on 15 July, 15 October, 15 January, and then on 15 April. This will be done on an annual basis until maturity.

The Indian Bank RD calculator 2020 works based on a standard formula:

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

In this formula,

  • M is maturity value
  • R is the monthly sum of your deposits
  • n refers to the maturity period (on a quarterly basis)
  • i represents the interest rate divided by 4

Here is an example to help you understand the calculation:

If you open a Normal RD account with the Indian Bank and you deposit Rs.1,000 every month for a period of 36 months. Here, your interest rate will be 5.65% per annum.

Let us put the information into the formula:

  • R = Rs.1,000
  • n = 12 [36 / 3]
  • i = 0.0141 [0.0565 / 4]
  • M = Rs. [1000 {(1 + 12) x 12 – 1} / 1 – (1 + 0.141) (-0.0141/3)] So, after calculation, M = Rs.39298.76

Benefits of the Indian Bank RD Calculator:

Here are the benefits of the Indian Bank RD interest calculator:

  • The calculator gives accurate results immediately.
  • This is a very easy online tool to use and can be used multiple times, for various principal amounts and interest rates.
  • The online calculator works on the standard RD formula.
  • You can use the calculator for comparing the returns across various maturity periods.

Using the Indian Bank RD calculator for computing your earnings will help you make a more informed decision.

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